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Digital transformation and total factor productivity in manufacturing firms: Evidence of corporate public responsibilities in China

Author

Listed:
  • Ding, Xiangan
  • Appolloni, Andrea
  • Shahzad, Mohsin
  • Liu, Yue
  • Han, Shaojie

Abstract

Fulfilling corporate public responsibilities to employees is crucial for sustainable social development. The impact of digital transformation on total factor productivity (TFP) about these responsibilities remains unclear. Taking Chinese manufacturing companies as the research sample, empirical analyses including fixed effect model, propensity score matching, and staggered Differences-in-Differences methods have demonstrated that digital strategy can boost manufacturing companies' TFP. Further, stepwise regression analysis of the mechanisms revealed that while the transformation primarily boosts productivity directly, it also indirectly boosts TFP by reinforcing employee and public responsibilities. These findings suggest that maintaining responsibilities to employees and the public during digital transformation can enhance corporate productivity. This study sheds light on how digital technology drives corporate social responsibility for sustainable social development.

Suggested Citation

  • Ding, Xiangan & Appolloni, Andrea & Shahzad, Mohsin & Liu, Yue & Han, Shaojie, 2025. "Digital transformation and total factor productivity in manufacturing firms: Evidence of corporate public responsibilities in China," Technology in Society, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:teinso:v:82:y:2025:i:c:s0160791x25000648
    DOI: 10.1016/j.techsoc.2025.102874
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