Digital Transformation and Corporate Performance - An Empirical Analysis Based on Listed Companies

Abstract

With the rapid development of information technology, digital transformation has become an important strategy for enterprises to enhance competitiveness and optimise resource allocation. Although studies have pointed out that digital transformation may affect firm performance through innovation capability and supply chain efficiency, its underlying mechanism is still controversial. Based on the panel data of Chinese A-share listed companies from 2010 to 2022, this study systematically examines the mechanism of digital transformation on firm performance using OLS regression model and mediated effect analysis. The study finds that: (1) the direct effect of digital transformation on firm performance is not significant, suggesting that there may be high investment and organisational adaptation costs in the early stage of transformation; (2) innovation capability fails to play a mediating role, which may be related to the lack of innovation culture and management mode change in some firms;