IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v19y2024i4p31.html

The Impact of Digital Transformation on Total Factor Productivity of Enterprises

Author

Listed:
  • Rui-qi Li
  • Haiying Ma
  • Xinyue Wang

Abstract

In recent years, China's economic development has transitioned into a new phase, shifting from the pursuit of rapid growth to a period of high quality development that prioritizes the enhancement of total factor productivity. Historically, China predominantly relied on extensive growth methods to bolster economic efficiency. However, in light of economic policy uncertainty, trade protectionism, international political friction and other external shocks, there has been a notable deceleration in productivity growth. Consequently, promoting the deep fusion of digital technology and traditional economic modalities while ameliorating overall factor productivity within micro-enterprises has emerged as an imperative undertaking in this new stage. The study of micro-level digital transformation in enterprises holds significant theoretical and practical implications for enhancing productivity. This paper employs panel data of all Shanghai and Shenzhen A-share listed enterprises from 2011 to 2021 to construct a keyword matrix for digital transformation, conduct quantitative analysis on its impact on enterprise total factor productivity, and explore the relationship and influence mechanism between digital transformation, financing constraints, and organizational redundancy. Additionally, heterogeneity analysis is performed based on property rights nature, enterprise scale, and overseas background of senior executives to offer valuable insights for the government in formulating tailored policies for enterprises with different characteristics. This study also provides empirical evidence for enterprises to develop customized digital transformation strategies.

Suggested Citation

  • Rui-qi Li & Haiying Ma & Xinyue Wang, 2024. "The Impact of Digital Transformation on Total Factor Productivity of Enterprises," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(4), pages 1-31, July.
    • Handle: RePEc:ibn:ijbmjn:v:19:y:2024:i:4:p:31
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijbm/article/download/0/0/50301/54458
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijbm/article/view/0/50301
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yuri Mishina & Timothy G. Pollock & Joseph F. Porac, 2004. "Are more resources always better for growth? Resource stickiness in market and product expansion," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1179-1197, December.
    2. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    3. Hanna Hottenrott & Bettina Peters, 2012. "Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation?," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1126-1142, November.
    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. Xu, Ru-Yu & Wang, Ke-Liang & Miao, Zhuang, 2024. "The impact of digital technology innovation on green total-factor energy efficiency in China: Does economic development matter?," Energy Policy, Elsevier, vol. 194(C).
    2. Li, Longda, 2024. "The environmental spillovers of buyers' digital transformation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    3. Juan He & Wei Tu, 2026. "Digitalization and vertical mergers & acquisitions," Economic Change and Restructuring, Springer, vol. 59(2), pages 1-23, April.
    4. Ke Zhao & Hanfang Li & Youxi Luo, 2026. "Dynamic Evolution and Convergence Analysis of Labor Resource Allocation Efficiency Under Digital Factor Collaboration: The Case of China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 5449-5475, April.
    5. Xin Xu & Meiya Sun, 2025. "Digital Transformation, Internationalisation and ESG Performance of Multinational Companies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2709-2725, July.
    6. Ai, Mingye & Zhang, Wei & Du, Shurong & Yu, Xiaohan & Bu, Yan, 2024. "The impact of digitalization on the green transformation of China's industrial sectors: The mediating role of green technology innovation and technological transformation," International Review of Economics & Finance, Elsevier, vol. 96(PC).
    7. yeboah, samuel, 2026. "Carbon Emissions and Cost Efficiency in Manufacturing Firms: Evidence from Digital Transformation, Energy Efficiency, and Green Innovation Perspectives," MPRA Paper 129216, University Library of Munich, Germany, revised 15 Apr 2026.
    8. Teng, Yuqiang & Du, Anna Min & Lin, Boqiang, 2024. "The mechanism of supply chain efficiency in enterprise digital transformation and total factor productivity," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    9. Yingjie Xu & Bingchao Zheng & Baojie Guo, 2025. "How Do Industrial Robots Affect the Total Factor Productivity in Manufacturing Enterprises?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(4), pages 14057-14093, October.

    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. David B. Audretsch & Alexander S. Kritikos & Alexander Schiersch, 2020. "Microfirms and innovation in the service sector," Small Business Economics, Springer, vol. 55(4), pages 997-1018, December.
    2. Audretsch, David & Hafenstein, Marian & Kritikos, Alexander S. & Schiersch, Alexander, 2018. "Firm Size and Innovation in the Service Sector," IZA Discussion Papers 12035, IZA Network @ LISER.
    3. Kexian Zhang & Xiaoying Liu & Min Hong, 2021. "Discretionary Effort on Green Technology Innovation: How Chinese Enterprises Act when Facing Financing Constraints," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-19, December.
    4. Jin, Man & Zhao, Shunan & Kumbhakar, Subal C., 2019. "Financial constraints and firm productivity: Evidence from Chinese manufacturing," European Journal of Operational Research, Elsevier, vol. 275(3), pages 1139-1156.
    5. Zhu, Huaijia & Chang, Shiwei & Chen, Bo & Zhu, Huaiqi, 2024. "How does military-civilian integration development influence corporate financial constraints in China? Evidence based on quasi-natural experiments," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1273-1289.
    6. Ine Paeleman & Catherine Fuss & Tom Vanacker, 2013. "The relationship between slack resources and firms’ exporting behavior," Working Paper Research 248, National Bank of Belgium.
    7. Insung Son & Sihyun Kim, 2018. "Does Partner Volatility Have Firm Value Relevance? An Empirical Analysis of Part Suppliers," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    8. Patel, Pankaj C. & Ojha, Divesh & Naskar, Shankar, 2022. "The effect of firm efficiency on firm performance: Evidence from the Domestic Production Activities Deduction Act," International Journal of Production Economics, Elsevier, vol. 253(C).
    9. liu, Zhizhong & Ju, Bin, 2023. "Network infrastructure construction and heterogeneous enterprise innovation quasi-natural experiment based on “Broadband China”," Information Economics and Policy, Elsevier, vol. 65(C).
    10. Paeleman, Ine & Fuss, Catherine & Vanacker, Tom, 2017. "Untangling the multiple effects of slack resources on firms’ exporting behavior," Journal of World Business, Elsevier, vol. 52(6), pages 769-781.
    11. Guangyuan Lu & Xiong Bai & Xiaoyun Zhang, 2025. "How Does Financial Support Affect Firms’ Innovation and Total Factor Productivity: A Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 17(1), pages 1-33, January.
    12. Di Ubaldo, Mattia, . "Firms and trade in downturns," Economics PhD Theses, Department of Economics, University of Sussex Business School, number 0416, December.
    13. repec:ces:ceswps:_10716 is not listed on IDEAS
    14. Tianjiao Zhao & Xiang Xiao & Qinghui Dai, 2021. "Transportation Infrastructure Construction and High-Quality Development of Enterprises: Evidence from the Quasi-Natural Experiment of High-Speed Railway Opening in China," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    15. Laura Hospido & Eva Moreno-Galbis, 2015. "The Spanish productivity puzzle in the Great Recession," Working Papers 1501, Banco de España.
    16. Anna M. Ferragina & Giulia Nunziante, 2018. "Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 335-360, September.
    17. Vu Hoang Duong & Tuong Phi Vinh, 2024. "Spillover effects of Japanese firms and the role of absorptive capacity in Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(2), pages 22-41, November.
    18. Massimo Colombo & Annalisa Croce & Samuele Murtinu, 2014. "Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms," Small Business Economics, Springer, vol. 42(2), pages 265-282, February.
    19. Ma, Yongfan & Hu, Xingcun, 2024. "Shadow banking and SME investment: Evidence from China's new asset management regulations," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 332-349.
    20. Jack Rossbach & Jose Asturias, 2017. "Misallocation in the Presence of Multiple Production Technologies," 2017 Meeting Papers 1094, Society for Economic Dynamics.
    21. Roberto Martino & Phu Nguyen-Van, 2014. "Labour market regulation and fiscal parameters: A structural model for European regions," Working Papers of BETA 2014-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:ijbmjn:v:19:y:2024:i:4:p:31. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.