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Digital transformation and total factor productivity of enterprises: evidence from China

Author

Listed:
  • Yanan Liang

    (National Academy of Governance)

  • Cheng Zhang

    (Graduate School of Chinese Academy of Social Sciences)

Abstract

Total factor productivity is the goal pursued by many countries in the development process. Despite the fact that total factor productivity plays a very important role in the transformation and development of enterprises, there is little literature that incorporates the digital transformation of individual microenterprises into the analytical framework of enterprises’ innovative behavior and economic impact. This paper empirically analyzes the impact of enterprise digital transformation on total factor productivity using the data of Shanghai and Shenzhen A-share listed enterprises from 2010 to 2021. It is found that enterprise digital transformation has a significant positive effect on the improvement of total factor productivity, and breakthrough innovation plays a positive role in the impact of digital transformation on total factor productivity of enterprises. This study provides important empirical support for enterprises to promote digital transformation and enhance their total factor productivity.

Suggested Citation

  • Yanan Liang & Cheng Zhang, 2024. "Digital transformation and total factor productivity of enterprises: evidence from China," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-22, February.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:1:d:10.1007_s10644-024-09587-z
    DOI: 10.1007/s10644-024-09587-z
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    More about this item

    Keywords

    Digital transformation; Total factor productivity; Breakthrough innovation; Text analysis;
    All these keywords.

    JEL classification:

    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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