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Corporate digital strategy and the firm's employment: evidence from China

Author

Listed:
  • Xia Chen

    (Audencia Business School)

  • Xiaolong Chen

    (Audencia Business School)

  • Xiaofeng Liu

    (SCU - Sichuan University [Chengdu])

  • Chenglong Wang

    (HRBEU - Harbin Engineering University)

Abstract

Digital transformation reshapes labor markets, yet firm-level employment effects remain underexplored. Using data of Chinese A-share listed firms, we investigate how corporate digital strategy affects firms' employment. Results show that firms' strategic development of digital technology increases total employment and reshapes workforce composition: demand rises for high-capability employees but declines for low-capability labor. Cross-sectional analyses reveal that the substitution effect is more pronounced in highly developed cities and high-education regions. Further analyses show that digital strategy raises firms' labor costs but also enhances their productivity, product competitiveness, and profitability. Our study provides firm-level insights into technology-driven labor market evolution.

Suggested Citation

  • Xia Chen & Xiaolong Chen & Xiaofeng Liu & Chenglong Wang, 2025. "Corporate digital strategy and the firm's employment: evidence from China," Post-Print hal-05449078, HAL.
    • Handle: RePEc:hal:journl:hal-05449078
    DOI: 10.1080/16081625.2025.2551337
    Note: View the original document on HAL open archive server: https://hal.science/hal-05449078v1
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