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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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    References listed on IDEAS

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    Cited by:

    1. Lu, Shan & Peng, Sihan & Shi, Jiaxin & Zhang, Ci & Feng, Yanchao, 2024. "How does digital transformation affect the total factor productivity of China's A-share listed enterprises in the mineral resource-based sector?," Resources Policy, Elsevier, vol. 94(C).
    2. Zhanli Li & Zichao Yang, 2024. "ESG Rating Disagreement and Corporate Total Factor Productivity:Inference and Prediction," Papers 2408.13895, arXiv.org, revised Oct 2024.
    3. Chengliang Wang & Xiaojun Liu & Yang Li, 2024. "Exploring Dynamic Capability Drivers of Green Innovation at Different Digital Transformation Stages: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 16(13), pages 1-21, July.

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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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