The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector

With vast potentials in improving operations and stimulating growth, digital transformation has aroused much attention from firms across the world. However, the high costs associated with the transformation can not be ignored. Limited research has looked into the organizational performance effects o...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Lei Guo, Luying Xu
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	digital transformation firm performance operating performance financial performance manufacturing sector China Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/b7d3db3ef55d41bfbb4f17ff97054c5d
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:b7d3db3ef55d41bfbb4f17ff97054c5d
record_format	dspace
spelling	oai:doaj.org-article:b7d3db3ef55d41bfbb4f17ff97054c5d2021-11-25T19:04:50ZThe Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector10.3390/su1322128442071-1050https://doaj.org/article/b7d3db3ef55d41bfbb4f17ff97054c5d2021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/22/12844https://doaj.org/toc/2071-1050With vast potentials in improving operations and stimulating growth, digital transformation has aroused much attention from firms across the world. However, the high costs associated with the transformation can not be ignored. Limited research has looked into the organizational performance effects of digital transformation. After examining the benefits and costs of digital transformation, this research makes an empirical study on the impact of digital transformation on firm operational and financial performance. The panel data from 2010 to 2020 of 2254 manufacturing companies in China suggests that the intensity of digital transformation is in positive correlation with the process-based operating performance, and in the U-shaped correlation with the profit-oriented financial performance. Further, we find that digital transformation has a much more lasting impact on operating performance than on financial performance. The conditions required (i.e., policy and innovation environment) to improve the operating performance via digital transformation are more easing. This research shows the differentiated effect of digital transformation on different dimensions of organizational performance and provides guidance for companies to set the goals for digital transformation.Lei GuoLuying XuMDPI AGarticledigital transformationfirm performanceoperating performancefinancial performancemanufacturing sectorChinaEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12844, p 12844 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	digital transformation firm performance operating performance financial performance manufacturing sector China Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	digital transformation firm performance operating performance financial performance manufacturing sector China Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Lei Guo Luying Xu The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
description	With vast potentials in improving operations and stimulating growth, digital transformation has aroused much attention from firms across the world. However, the high costs associated with the transformation can not be ignored. Limited research has looked into the organizational performance effects of digital transformation. After examining the benefits and costs of digital transformation, this research makes an empirical study on the impact of digital transformation on firm operational and financial performance. The panel data from 2010 to 2020 of 2254 manufacturing companies in China suggests that the intensity of digital transformation is in positive correlation with the process-based operating performance, and in the U-shaped correlation with the profit-oriented financial performance. Further, we find that digital transformation has a much more lasting impact on operating performance than on financial performance. The conditions required (i.e., policy and innovation environment) to improve the operating performance via digital transformation are more easing. This research shows the differentiated effect of digital transformation on different dimensions of organizational performance and provides guidance for companies to set the goals for digital transformation.
format	article
author	Lei Guo Luying Xu
author_facet	Lei Guo Luying Xu
author_sort	Lei Guo
title	The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
title_short	The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
title_full	The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
title_fullStr	The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
title_full_unstemmed	The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector
title_sort	effects of digital transformation on firm performance: evidence from china’s manufacturing sector
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/b7d3db3ef55d41bfbb4f17ff97054c5d
work_keys_str_mv	AT leiguo theeffectsofdigitaltransformationonfirmperformanceevidencefromchinasmanufacturingsector AT luyingxu theeffectsofdigitaltransformationonfirmperformanceevidencefromchinasmanufacturingsector AT leiguo effectsofdigitaltransformationonfirmperformanceevidencefromchinasmanufacturingsector AT luyingxu effectsofdigitaltransformationonfirmperformanceevidencefromchinasmanufacturingsector
_version_	1718410359897849856

The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector

Ejemplares similares