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Research on the Impact of Enterprise Digital Transformation on Internal Control

Author

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  • Chenxi Wang

    (School of Economics and Management, Guizhou Normal University, Guiyang 550001, China)

  • Deli Wang

    (School of Accounting, Guangdong University of Foreign Studies, Guangzhou 510006, China)

  • Xincai Deng

    (School of Economics and Management, Guizhou Normal University, Guiyang 550001, China)

  • Shun Wang

    (School of Business, Anhui University, Hefei 230601, China)

Abstract

Digital transformation is a crucial strategy for enterprises to achieve improvements in quality, efficiency, and dynamism. It represents the key direction for enterprise innovation and reform, and it is also of great significance for promoting high-quality economic development. While the previous research has shown that digital transformation can affect business efficiency, performance, and corporate governance, there is a lack of literature clearly linking digital transformation to internal control. To determine whether enterprise digital transformation impacts the constructions and implementation of internal control, we analyze data from Shanghai and Shenzhen A-share listed companies between 2012 and 2019. Our study found that the extent of digital transformation in enterprises has a positive impact on the establishment and effectiveness of internal control. Furthermore, we examine the role of market competition in the relationship between the digital transformation and internal control. We found that the impact of digital transformation on internal control is limited in enterprises with relatively mild market competition, while in more fiercely competitive markets, the positive impact of digital transformation on internal control is more pronounced.

Suggested Citation

  • Chenxi Wang & Deli Wang & Xincai Deng & Shun Wang, 2023. "Research on the Impact of Enterprise Digital Transformation on Internal Control," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8392-:d:1152723
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    References listed on IDEAS

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    Cited by:

    1. Junbo He & Min Fan & Yaojun Fan, 2024. "Digital transformation and supply chain efficiency improvement: An empirical study from a-share listed companies in China," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-21, April.
    2. Mu Xing & Hongmei Zhang & Dong Chen & Wenhe Chen, 2025. "Green Transformation of Enterprises and the Bullwhip Effect: Empirical Evidence from Listed Companies in China," Sustainability, MDPI, vol. 17(12), pages 1-32, June.
    3. Wang Jinyu & Zhao Cuiping & Jie Jinrong, 2024. "Research on the Problems and Institutional Optimization Strategies of Rural Collective Economic Organization Governance," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-12.
    4. Qigan Shao & Changchang Jiang & James J. H. Liou & Peiyao Su & Ying Yuan & Zhu Dan, 2025. "Exploring the Influencing Factors of Digital Transformation: Empirical Results From SMEs in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(4), pages 2364-2380, June.
    5. Na Xu & Wendong Lv & Junli Wang, 2024. "The impact of digital transformation on firm performance: a perspective from enterprise risk management," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 369-400, June.
    6. Shouchao He & Zhi Jin & Yuanxiao Hong & Lindong Ma & YE Jiang & YuJing Chen, 2025. "The Impact of Digital Transformation on Commercial Banks’ Business Performance: An Empirical Study of 39 Listed Commercial Banks," SAGE Open, , vol. 15(4), pages 21582440251, November.
    7. Le Sun & Tze San Ong & Boon Heng Teh & Assunta Di Vaio, 2024. "Sustainable performance measurement through digital transformation within the sustainable development framework: The mediating effect of supply chain concentration," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 5895-5912, December.
    8. Wang, Ting & Wang, Jiangyuan, 2026. "Information spillover effects of corporate digital transformation," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 274-286.
    9. Du, Kunkai & Liu, Jun & Wang, Kunlun & Zhao, Qicheng, 2025. "Enterprise digital transformation and bond credit spreads: From the perspective of risk premium," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 2079-2097.
    10. Mine Aksoy & Mustafa K. Yılmaz & Esra Cengiz Tırpan & Mehtap Özşahin & Erman Coşkun & Özgür Uysal, 2025. "Exploring the Non-Linear Impacts of Digital Maturity on Corporate Sustainability: New Evidence from Türkiye," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(SI), pages 107-131.
    11. Jie Liang & Mengfan Wang, 2024. "Executive Social Connection, Regional Digital Economy Development, and Enterprise Digital Transformation," Sustainability, MDPI, vol. 16(15), pages 1-20, July.
    12. Ding, Xiaowei & Vuković, Darko B. & Sokolov, Boris I. & Vukovic, Natalia & Liu, Yali, 2024. "Enhancing ESG performance through digital transformation: Insights from China's manufacturing sector," Technology in Society, Elsevier, vol. 79(C).
    13. Luo Zixu, 2024. "The Impact of Firm Digital Transformation on Environmental, Social, and Governance Performance: Evidence from China," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-12.
    14. Yanqi Sun & Jingtong Wu & Tairan Kevin Huang & Howard Davey & Yuzhong Lu, 2026. "Is ESG Transparency the Fruit of Corporate Digitalization: Strategic Pathways to Enhanced ESG Disclosure?," Business Strategy and the Environment, Wiley Blackwell, vol. 35(3), pages 3923-3951, March.
    15. Zhao, Zeru, 2024. "Digital Transformation and Enterprise Risk-Taking," Finance Research Letters, Elsevier, vol. 62(PA).

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