IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v98y2025ics105905602500111x.html
   My bibliography  Save this article

Digital transformation, management efficiency and intra-firm common prosperity

Author

Listed:
  • Qiao, ChengZhi
  • Chen, Shan

Abstract

Mitigating poverty is a critical task of Sustainable Development Goals (SDGs), and addressing the intra-firm income gap is crucial. This paper delves into the causal relationship between digital transformation and intra-firm income distribution, employing a two-fixed method that spans the period from 2013 to 2022. In the context of the overarching megatrend of digital transition, the findings of this study affirm that digital transformation can effectively narrow the income gap within firms. This reduction in the income disparity is likely achieved through an increase in employees' salaries coupled with a decrease in executives' remuneration. Furthermore, additional analysis confirms that digital transformation facilitates the attainment of intra-firm common prosperity by enhancing management efficiency. By harnessing the power of digital technology, firms can foster a more equitable and prosperous work environment for all stakeholders.

Suggested Citation

  • Qiao, ChengZhi & Chen, Shan, 2025. "Digital transformation, management efficiency and intra-firm common prosperity," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s105905602500111x
    DOI: 10.1016/j.iref.2025.103948
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S105905602500111X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.103948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Fernandez-Vidal, Jorge & Antonio Perotti, Francesco & Gonzalez, Reyes & Gasco, Jose, 2022. "Managing digital transformation: The view from the top," Journal of Business Research, Elsevier, vol. 152(C), pages 29-41.
    2. Plekhanov, Dmitry & Franke, Henrik & Netland, Torbjørn H., 2023. "Digital transformation: A review and research agenda," European Management Journal, Elsevier, vol. 41(6), pages 821-844.
    3. Guandalini, Ilaria, 2022. "Sustainability through digital transformation: A systematic literature review for research guidance," Journal of Business Research, Elsevier, vol. 148(C), pages 456-471.
    4. Pleninger, Regina, 2022. "Impact of natural disasters on the income distribution," World Development, Elsevier, vol. 157(C).
    5. Bochao Zhang & Wanhao Dong & Jin Yao, 2023. "Research on the income distribution effect of factor allocation efficiency changes among China’s three major industries," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-25, October.
    6. Jianing Pang & Yimeng Zhang & Fangyi Jiao, 2023. "The Impact of the Digital Economy on Transformation and Upgrading of Industrial Structure: A Perspective Based on the “Poverty Trap”," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    7. Wildauer, Rafael & Kohler, Karsten & Aboobaker, Adam & Guschanski, Alexander, 2023. "Energy price shocks, conflict inflation, and income distribution in a three-sector model," Energy Economics, Elsevier, vol. 127(PB).
    8. Dvoskin, Ariel & Torchinsky Landau, Matías, 2023. "Income distribution and economic cycles in an open-economy supermultiplier model," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 273-291.
    9. Branko Milanovic, 2022. "After the Financial Crisis: The Evolution of the Global Income Distribution Between 2008 and 2013," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 43-73, March.
    10. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    11. Khattak, Mudeer Ahmed & Ali, Mohsin & Azmi, Wajahat & Rizvi, Syed Aun R., 2023. "Digital transformation, diversification and stability: What do we know about banks?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 122-132.
    12. Gang Li, 2023. "Digital Inequality and Household Income Distribution: Evidence from Rural China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(6), pages 3061-3087, December.
    13. Ghosh, Swapan & Hughes, Mat & Hodgkinson, Ian & Hughes, Paul, 2022. "Digital transformation of industrial businesses: A dynamic capability approach," Technovation, Elsevier, vol. 113(C).
    14. Mussida, Chiara & Sciulli, Dario, 2023. "The evolution of income distribution and disability in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 29-38.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan Zhang & Jiao Zhang & Yang Lu & Feng Ji, 2025. "Digitalization and Firm Value: The Evidence from China’s Manufacturing Enterprises," Sustainability, MDPI, vol. 17(6), pages 1-22, March.
    2. Fang, Xing & Sun, Yiyao, 2025. "Does digital transformation affect enterprise executives' remuneration governance?," Finance Research Letters, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jinshan Zhang & Man Liu, 2024. "How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    2. Li, Yawen & Xia, Yufei & Sun, Zongting & Sun, Naili, 2025. "Does digital transformation affect systemic risk? Evidence from the banking sector in China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    3. Babaçoğlu, Sinan & Yalçın, Galip Cihan & Kara, Karahan & Turen, Ufuk & Simic, Vladimir & Polat, Mustafa & Pamucar, Dragan, 2025. "Promoting benchmarking and best practices in education: An interval-valued spherical fuzzy model for assessing sustainable digital transformation maturity," Technology in Society, Elsevier, vol. 81(C).
    4. Yu Sang & Kannan Loganathan & Lu Lin, 2024. "Digital Transformation and Firm ESG Performance: The Mediating Role of Corporate Risk-Taking and the Moderating Role of Top Management Team," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    5. Zhao, Yiming & Li, Haitong & Miao, Zicong & Li, Keyang, 2025. "Digital M&As, knowledge distance, and labor productivity: Technical and organizational perspectives," Economic Modelling, Elsevier, vol. 147(C).
    6. Geng, Yong & Xiang, Xiaojian & Zhang, Guosheng & Li, Xue, 2024. "Digital transformation along the supply chain: Spillover effects from vertical partnerships," Journal of Business Research, Elsevier, vol. 183(C).
    7. Kratochvil, Renate, 2025. "Stepping in and stepping aside: Employees navigating digital transformation paradoxes," Journal of Business Research, Elsevier, vol. 191(C).
    8. Thanh-Nhat-Lai Nguyen & Son-Tung Le, 2025. "Factors Leading to the Digital Transformation Dead Zone in Shipping SMEs: A Dynamic Capability Theory Perspective," Sustainability, MDPI, vol. 17(12), pages 1-32, June.
    9. Bogdan Rusu & Christiana Brigitte Sandu & Silvia Avasilcai & Irina David, 2023. "Acceptance of Digital Transformation: Evidence from Romania," Sustainability, MDPI, vol. 15(21), pages 1-17, October.
    10. Zhiying Ji & Tingyu Zhou & Qian Zhang, 2023. "The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    11. Torrent-Sellens, Joan & Enache-Zegheru, Mihaela & Ficapal-Cusí, Pilar, 2025. "Twin transitions or a meeting of strangers? Unravelling the effects of AI and innovations on economic, social and environmental MSMEs sustainability," Technology in Society, Elsevier, vol. 81(C).
    12. Mirza, Sultan Sikandar & Miao, Yiyao & Corbet, Shaen & Scrimgeour, Frank & Goodell, John W., 2024. "Benefits of Top Management Team Education for Corporate Digital Transformation: A Critical Mass Perspective from China," Finance Research Letters, Elsevier, vol. 61(C).
    13. Zheng, Jianwen & Zhang, Justin Zuopeng & Kamal, Muhammad Mustafa & Mangla, Sachin Kumar, 2025. "A dual evolutionary perspective on the Co-evolution of data-driven digital transformation and value proposition in manufacturing SMEs," International Journal of Production Economics, Elsevier, vol. 282(C).
    14. Zhang, Kaixia & Bu, Caiqi, 2024. "Top managers with information technology backgrounds and digital transformation: Evidence from small and medium companies," Economic Modelling, Elsevier, vol. 132(C).
    15. António Porfírio, José & Augusto Felício, José & Carrilho, Tiago, 2024. "Factors affecting digital transformation in banking," Journal of Business Research, Elsevier, vol. 171(C).
    16. Rialti, Riccardo & Filieri, Raffaele, 2024. "Leaders, let’s get agile! Observing agile leadership in successful digital transformation projects," Business Horizons, Elsevier, vol. 67(4), pages 439-452.
    17. Tianchu Feng & Andrea Appolloni & Jiayu Chen, 2024. "How does corporate digital transformation affect carbon productivity? Evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31425-31445, December.
    18. Naudé, Wim & Nagler, Paula, 2022. "The Ossified Economy: The Case of Germany, 1870-2020," IZA Discussion Papers 15607, Institute of Labor Economics (IZA).
    19. Ewa Cieślik, 2024. "From traditional to digital servicification: Chinese services in European manufacturing," Networks and Spatial Economics, Springer, vol. 24(4), pages 927-965, December.
    20. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:98:y:2025:i:c:s105905602500111x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.