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Business environment and enterprise digital transformation

Author

Listed:
  • Luo, Yonggen
  • Cui, Huijie
  • Zhong, Huiyi
  • Wei, Changhua

Abstract

Digital transformation has become imperative for firms to survive in highly competitive societies. This study investigates the relationship between the business environment and enterprise digital transformation. The results show a significant positive relationship between the two. Further channel analysis indicates that attracting professional leadership of top managers, enhancing investment in digital technology, and increasing government subsidies related to digitalization provided by a better business environment are three possible channels that facilitate digital transformation. Overall, our study provides new insights on the determinants of digital transformation and offers supplementary evidence for companies to facilitate their pace of digital transformation.

Suggested Citation

  • Luo, Yonggen & Cui, Huijie & Zhong, Huiyi & Wei, Changhua, 2023. "Business environment and enterprise digital transformation," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006220
    DOI: 10.1016/j.frl.2023.104250
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Özer, Mustafa & Vukovic, Darko B. & Frömmel, Michael & Kamişli, Serap, 2023. "The effects of Covid-19 related response policies on the performances of technology-driven financial services companies," Finance Research Letters, Elsevier, vol. 58(PD).
    3. Zhao, Qi & Guo, Ming & Feng, Fangfang & Li, Junjun & Guan, Hangtian, 2024. "Path analysis of digital development on the green industrial transformation of Chinese resource-based enterprises," Resources Policy, Elsevier, vol. 93(C).
    4. Liu, Biao & Li, Yanfeng & Liu, Jipeng & Hou, Yufei, 2024. "Does urban innovation policy accelerate the digital transformation of enterprises? Evidence based on the innovative City pilot policy," China Economic Review, Elsevier, vol. 85(C).
    5. Bai, Zonghang & Ban, Yuanhao & Hu, Haifeng, 2024. "Banking competition and digital transformation," Finance Research Letters, Elsevier, vol. 61(C).
    6. Jia, Shanghui & Chen, Xinhui & Jin, Jiayu, 2024. "Digital disruption and energy efficiency: The impact of regional digitalization on China's industrial sector," Energy, Elsevier, vol. 300(C).
    7. Zhao, Zeru, 2024. "Digital Transformation and Enterprise Risk-Taking," Finance Research Letters, Elsevier, vol. 62(PA).
    8. Liu, Yuya & Mai, Sheng, 2024. "The evaluation of innovation ability of China's information technology application innovation enterprises based on cloud modeling," Finance Research Letters, Elsevier, vol. 60(C).
    9. Zongcheng Xie & Xuanzhi Yang, 2025. "How Can the Business Environment Promote Urban Innovation and High-Quality Development?—A Qualitative Comparative Analysis Based on the Perspective of Configuration," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    10. Hao, Xiaoli & Miao, Erxiang & Sun, Qingyu & Li, Ke & Wen, Shufang & Xue, Yan, 2024. "The impact of digital government on corporate green innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    11. Fan, Xueyuan & Zhao, Shukuan & Shao, Dong & Wang, Shuang & Zhang, Bochen, 2024. "Talking and walking: Corporate digital transformation and government subsidies," Finance Research Letters, Elsevier, vol. 64(C).
    12. Li, Pingrui & Zhao, Xu, 2024. "The impact of digital transformation on corporate supply chain management: Evidence from listed companies," Finance Research Letters, Elsevier, vol. 60(C).
    13. Cui, Huijie & Zhou, Xue & Luo, Yonggen, 2023. "Digital transformation and bond credit spread," Finance Research Letters, Elsevier, vol. 58(PC).

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    More about this item

    Keywords

    Business environment; Digital technology; Digital transformation; Government support;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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