IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0298633.html
   My bibliography  Save this article

Corporate digital transformation, internal control and total factor productivity

Author

Listed:
  • Xiao Li
  • Feiyang Zhao
  • Zhiquan Zhao

Abstract

Based on Resource-based theory and Internal Control (IC) theory, this study elucidates the impacts of corporate digital transformation on total factor productivity, and IC effectiveness, as well as the mechanism among digital transformation, IC and total factor productivity. The results show that digital transformation promotes total factor productivity and IC effectiveness. And effective IC has a significant mediating effect for the impact of digital transformation on total factor productivity. Heterogeneity discussion shows that compared with high-tech enterprises, in non-high-tech ones, digital transformation increases total factor productivity, and more significantly enhances IC effectiveness, presenting a mechanism that digital transformation facilitates IC, and increases total factor productivity. For non-high-tech enterprises, with higher heterogeneity of executive education backgrounds, digital transformation promotes IC effectiveness and total factor productivity, showing the transmission effect among digital transformation, IC and total factor productivity. Finally, it is suggested that the regulatory authorities advance digital infrastructure construction, to reinforce IC and risk prevention, thereby increase total factor productivity. And enterprises grasp the opportunity of digital economy development, promote the mechanism that digital transformation facilitates IC effectiveness, and increases total factor productivity. Non-high-tech ones motivate digital elements’ governance efficacy, optimize executive structure, coordinately promote digital strategy, and help the national economy acquire high-quality development. The study provides enlightenments to achieve high-quality development.

Suggested Citation

  • Xiao Li & Feiyang Zhao & Zhiquan Zhao, 2024. "Corporate digital transformation, internal control and total factor productivity," PLOS ONE, Public Library of Science, vol. 19(3), pages 1-34, March.
    • Handle: RePEc:plo:pone00:0298633
    DOI: 10.1371/journal.pone.0298633
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0298633
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0298633&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0298633?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    3. Zhi-Guang Li & Yanrui Wu & Yao-Kuang Li, 2023. "Technical Founders, Digital Transformation and Corporate Technological Innovation: Empirical Evidence from Listed Companies in China’s STAR Market," Economics Discussion / Working Papers 23-03, The University of Western Australia, Department of Economics.
    4. Dukangqi Li & Weitao Shen, 2021. "Can Corporate Digitalization Promote Green Innovation? The Moderating Roles of Internal Control and Institutional Ownership," Sustainability, MDPI, vol. 13(24), pages 1-22, December.
    5. Bertani, Filippo & Ponta, Linda & Raberto, Marco & Teglio, Andrea & Cincotti, Silvano, 2021. "The complexity of the intangible digital economy: an agent-based model," Journal of Business Research, Elsevier, vol. 129(C), pages 527-540.
    6. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    7. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    8. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    9. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    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. Tang, Lingbing & Li, Ming, 2025. "Is financial digitalization an effective strategy to prevent stock price crash?," Finance Research Letters, Elsevier, vol. 72(C).

    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. Plekhanov, Dmitry & Franke, Henrik & Netland, Torbjørn H., 2023. "Digital transformation: A review and research agenda," European Management Journal, Elsevier, vol. 41(6), pages 821-844.
    2. Yang (Eric) Zhou & Jingjun (David) Xu & Zhiying Liu, 2024. "The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 373-393, January.
    3. Guo, Bin & Zhang, Jiale & Tan, Ziyan, 2024. "Firm digitalization as strategic response: An integrated model based on the awareness-motivation-capability (AMC) framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    4. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    5. Chen, Hansong & Tian, Zhen, 2022. "Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach," Journal of Business Research, Elsevier, vol. 139(C), pages 184-193.
    6. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    7. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    8. Zhuoya Du & Qian Wang, 2024. "The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-34, December.
    9. Cong Cheng & Hongfang Cui, 2024. "Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    10. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    11. Kroh, Julia & Globocnik, Dietfried & Schultz, Carsten & Holdhof, Frederike & Salomo, Søren, 2024. "Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Evgeny V. Popov & Wadim Strielkowski & Maksim V. Vlasov, 2020. "Digitalization of intellectual activity in Russian regions," Upravlenets, Ural State University of Economics, vol. 11(1), pages 24-32, March.
    13. Yuchong Hu & Yifan Pan & Miao Yu & Peishen Chen, 2024. "Navigating Digital Transformation and Knowledge Structures: Insights for Small and Medium-Sized Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16311-16344, December.
    14. Xueyan Xie & Xiaohui Xu, 2024. "The impact of population aging on SME digital transformation: Evidence from China," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-26, May.
    15. Chen Ren & Sang-Joon Lee & Chenxi Hu, 2023. "Digitalization Improves Enterprise Performance: New Evidence by Text Analysis," SAGE Open, , vol. 13(2), pages 21582440231, May.
    16. Shuang Meng & Pengxiang Wang & Jiajie Yu, 2022. "Going Abroad and Going Green: The Effects of Top Management Teams’ Overseas Experience on Green Innovation in the Digital Era," IJERPH, MDPI, vol. 19(22), pages 1-20, November.
    17. Alberto Michele Felicetti & Vincenzo Corvello & Salvatore Ammirato, 2024. "Digital innovation in entrepreneurial firms: a systematic literature review," Review of Managerial Science, Springer, vol. 18(2), pages 315-362, February.
    18. Jiang, Kangqi & Du, Xinyi & Chen, Zhongfei, 2022. "Firms' digitalization and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 82(C).
    19. Anca Elena Lungu & Mircea Radu Georgescu & Daniel Juravle, 2024. "A Bibliometric Analysis of Digital Entrepreneurship," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18617-18645, December.
    20. Huynh Thi Thuy Giang & Luu Tien Dung, 2025. "Sharing economy and retailer sustainable performance: the mechanisms via business model innovation and digital capabilities," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-33, December.

    More about this item

    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:plo:pone00:0298633. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.