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Digital transformation and total factor productivity of enterprises: evidence from China

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Abstract

Total factor productivity is the goal pursued by many countries in the development process. Despite the fact that total factor productivity plays a very important role in the transformation and development of enterprises, there is little literature that incorporates the digital transformation of individual microenterprises into the analytical framework of enterprises’ innovative behavior and economic impact. This paper empirically analyzes the impact of enterprise digital transformation on total factor productivity using the data of Shanghai and Shenzhen A-share listed enterprises from 2010 to 2021. It is found that enterprise digital transformation has a significant positive effect on the improvement of total factor productivity, and breakthrough innovation plays a positive role in the impact of digital transformation on total factor productivity of enterprises. This study provides important empirical support for enterprises to promote digital transformation and enhance their total factor productivity.

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Funding

This paper was funded by the Social Research Project of Youth Humanities and Social Sciences Research Center of the Chinese Academy of Social Sciences (2024QNZX013) and the Graduate Student Research and Innovation Support Program of the Graduate School of the University of Chinese Academy of Social Sciences (Graduate School) (2023-KY-75).

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Authors and Affiliations

  1. Party School of the Central Committee of C.P.C., National Academy of Governance, No. 100, Dayouzhuang, Qinglongqiao Street, Haidian District, Beijing, 100091, China

    Yanan Liang

  2. Graduate School of Chinese Academy of Social Sciences, Beijing, China

    Cheng Zhang

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  1. Yanan Liang
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  2. Cheng Zhang
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Correspondence to Yanan Liang.

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Liang, Y., Zhang, C. Digital transformation and total factor productivity of enterprises: evidence from China. Econ Change Restruct 57, 7 (2024). https://doi.org/10.1007/s10644-024-09587-z

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