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Digitalization and Firm Value: The Evidence from China’s Manufacturing Enterprises

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Listed:
  • Yan Zhang

    (School of Economics and Management, Nanhu Campus, China University of Mining and Technology, Xuzhou 221116, China)

  • Jiao Zhang

    (College of Economics and Management, Xinjiang Agricultural University, Urumqi 830091, China)

  • Yang Lu

    (ZEEKR Intelligent Technology Holding Limited, Hangzhou 311200, China)

  • Feng Ji

    (School of Economics and Management, Nanhu Campus, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

In the context of digital transformation, the varying dimensions of digital maturity significantly influence value creation enhancement for enterprises. Optimizing these dimensions to augment corporate value represents an urgent challenge for manufacturing enterprises. This study examines 355 listed automotive manufacturing enterprises (including auto parts and related businesses) through multi-case analysis, grounded theory, and QCA methodology to investigate the intrinsic mechanisms and pathways linking digital transformation with value enhancement in automotive manufacturing. The sample enterprises were categorized by industry type into capital-intensive, technology-intensive, and labor-technology-intensive manufacturers, and were then further segmented into complete vehicle manufacturers, component manufacturers, and related industry manufacturers. The selection criteria emphasized enterprises with explicit digital transformation strategies, sufficient transformation documentation, complete annual reports, stable core operations, and anomaly-free key data. The key findings include the following: (1) Grounded theory identified service digitalization, environmental digitalization, middleware digitalization, marketing digitalization, and R&D digitalization as critical variables, with enterprise value enhancement requiring multi-dimensional synergies rather than single-factor determinants. (2) Configuration analysis revealed that comprehensive empowerment type (consistency > 0.8, coverage 35.9%) drives high-value enhancement, while service-deficiency, R&D-deficiency, and marketing-deficiency configurations characterize non-high-value scenarios. Service, R&D, and marketing digitalization emerge as core-value-enhancing competencies (consistency 0.817, coverage 75.9%). (3) Heterogeneous driving forces were observed across vehicle manufacturers, component manufacturers, and related industry manufacturers, though service digitalization constitutes a common-value-enhancing element. This research provides theoretical insights into manufacturing digital transformation’s value creation mechanisms and strategic implications, addressing current academic gaps. However, the automotive industry focus limits generalizability despite its concrete exploration of industry-specific digital transformation. Future studies should expand industry coverage and conduct comparative analyses to enhance theoretical robustness.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2623-:d:1613607
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    References listed on IDEAS

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    1. Salvi, Antonio & Vitolla, Filippo & Rubino, Michele & Giakoumelou, Anastasia & Raimo, Nicola, 2021. "Online information on digitalisation processes and its impact on firm value," Journal of Business Research, Elsevier, vol. 124(C), pages 437-444.
    2. Qiao, ChengZhi & Chen, Shan, 2025. "Digital transformation, management efficiency and intra-firm common prosperity," International Review of Economics & Finance, Elsevier, vol. 98(C).
    3. Yingyu Chen & Jun Ren, 2025. "How does digital transformation improve ESG performance? Empirical research from 396 enterprises," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-24, December.
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