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Cultural Barriers to Digital Innovation: Understanding the Impact of Gambling Culture on Chinese Firms

Author

Listed:
  • Yiming Zhao

    (Renmin University of China)

  • Aizhi Ren

    (Liaocheng University)

  • Ziang Lin

    (Tsinghua University)

  • Zicong Miao

    (China Telecom Cloud Computing Corporation)

Abstract

This study explores the complex relationship between gambling culture and digital transformation within Chinese enterprises, focusing on A-share listed companies from 2008 to 2021. Through rigorous empirical analysis, we uncover that prevalent gambling culture significantly impedes digital transformation initiatives by reducing awareness, behavior, and outcomes. The adverse effects stem from the speculative psychology ingrained in gambling culture, leading to decreased talent input, lower innovation efficiency, and constrained growth of high-tech and IT firms, coupled with weakened government policy guidance. Our research highlights the heterogeneity across different industries and provincial characteristics, revealing varying susceptibility to the negative influences of gambling culture. Mechanism analysis demonstrates that gambling culture obstructs digital transformation by hindering talent cultivation and innovation investment, essential drivers of digital success. These findings underscore the critical need for fostering an innovation-friendly environment and enhancing government support to mitigate the detrimental impact of gambling culture on enterprise digitalization. By emphasizing the subtle yet profound influence of cultural contexts on corporate strategies, this study provides valuable insights for policymakers and business leaders in developing economies. The research contributes to the broader knowledge economy discourse by highlighting the intersection of cultural norms, technological advancement, and societal progress, advocating for a more holistic approach to understanding digital transformation in diverse cultural settings.

Suggested Citation

  • Yiming Zhao & Aizhi Ren & Ziang Lin & Zicong Miao, 2025. "Cultural Barriers to Digital Innovation: Understanding the Impact of Gambling Culture on Chinese Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4782-4817, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02131-4
    DOI: 10.1007/s13132-024-02131-4
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