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Does digital transformation enhance the core competitiveness?—Quasi-natural experimental evidence from Chinese traditional manufacturing

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  • LiuYang Zhang
  • PingQian Qiu
  • Peng Cao

Abstract

In the era of the digital economy, building an internationally competitive manufacturing industry with intelligent manufacturing as its main focus is the only way to promote the transformation of a country into a manufacturing power and achieve high-quality economic development. To explore whether Digital transformation can improve the core competitiveness of traditional manufacturing enterprises, and what factors affect this process, this study establishes the core competitiveness system of enterprises through the principal component analysis(PCA) method and discusses the above issues through the construction of a double difference model. The results of this research from China’s traditional manufacturing industry are as follows. (i) The digital transformation of enterprises has significantly improved their core competitiveness and has a certain time lag effect. (ii) In the process of enterprise digital transformation, enterprise management capabilities, environmental uncertainty, and enterprise operational efficiency will positively enhance the results of enterprise digital transformation. (iii) The enhancement of core competitiveness caused by digital transformation is more significant for the market leaders and laggards. (iv) Compared with non-state-owned enterprises, the Digital Transformationn of state-owned enterprises has a more obvious effect on promoting their core competitiveness. (v) In comparison with enterprises with low government subsidies, the Digital Transformation of enterprises with high government subsidies plays a more significant role in promoting their core competitiveness. In addition, this study proposes policy guidance and practical guidance for digital transformation to accelerate the promotion of core competitiveness of traditional manufacturing industry.

Suggested Citation

  • LiuYang Zhang & PingQian Qiu & Peng Cao, 2023. "Does digital transformation enhance the core competitiveness?—Quasi-natural experimental evidence from Chinese traditional manufacturing," PLOS ONE, Public Library of Science, vol. 18(11), pages 1-23, November.
    • Handle: RePEc:plo:pone00:0289278
    DOI: 10.1371/journal.pone.0289278
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