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Digital Transformation and Non-Financial Performance in Manufacturing

Author

Listed:
  • Chenyu Dai

    (School of Business, Soochow University, Suzhou 215000, China
    These authors contributed equally to this work.)

  • Jianwen Fang

    (School of Business, Soochow University, Suzhou 215000, China
    These authors contributed equally to this work.)

Abstract

In the context of the digital economy era, can digital transformation promote the improvement of non-financial performance of manufacturing enterprises? Taking Shanghai and Shenzhen A-share listed manufacturing firms from 2012 to 2021 as instances, this paper decomposes non-financial performance from five dimensions: innovation performance, ESG performance, working capital management performance, organizational resilience, and corporate market competitiveness, and examines the effects and mechanisms of the digital revolution on manufacturing companies’ non-financial performance via empirical analysis. The findings are as follows: (1) digital transformation of manufacturing enterprises plays a significant positive role in innovation performance, ESG performance, working capital management performance, organizational resilience, and corporate market competitiveness, and (2) digital transformation can promote the improvement of non-financial performance of manufacturing enterprises by improving the quality of internal control. In addition, the heterogeneity analysis results show that digital transformation contributes more to the non-financial performance of non-state-owned manufacturing enterprises. The study conclusion can provide experience for promoting the sustainable development of manufacturing enterprises and driving high-quality economic development.

Suggested Citation

  • Chenyu Dai & Jianwen Fang, 2024. "Digital Transformation and Non-Financial Performance in Manufacturing," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5099-:d:1415499
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    References listed on IDEAS

    as
    1. Leung, T.Y. & Sharma, Piyush, 2021. "Differences in the impact of R&D intensity and R&D internationalization on firm performance – Mediating role of innovation performance," Journal of Business Research, Elsevier, vol. 131(C), pages 81-91.
    2. Hongtao Wang & Wencheng Cao & Fei Wang, 2022. "Digital Transformation and Manufacturing Firm Performance: Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
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