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Digital transformation and manufacturing company competitiveness

Author

Listed:
  • Sui, Xiaoning
  • Jiao, Shuaipeng
  • Wang, Yongming
  • Wang, Haijun

Abstract

Digital transformation is playing an increasingly important role in ensuring the sustainable development and economic growth of companies, particularly manufacturing companies. In light of this, this paper investigates the impact of digital transformation on the competitiveness of companies and the underlying mechanisms that drive this impact. The research findings indicate that digital transformation has a positive effect on the competitiveness of manufacturing companies, with a 1 % increase in the degree of digital transformation leading to a 0.015 % enhancement in company competitiveness. Digital transformation achieves this by elevating the total factor productivity, research and development intensity, and human capital of companies, thereby enhancing their overall competitiveness. These findings enrich and extend the research on the influence of digital transformation on manufacturing companies and provide important policy implications for enhancing the competitiveness of manufacturing companies through digital empowerment.

Suggested Citation

  • Sui, Xiaoning & Jiao, Shuaipeng & Wang, Yongming & Wang, Haijun, 2024. "Digital transformation and manufacturing company competitiveness," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323010553
    DOI: 10.1016/j.frl.2023.104683
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    References listed on IDEAS

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    1. Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
    2. Ron Adner & Phanish Puranam & Feng Zhu, 2019. "What Is Different About Digital Strategy? From Quantitative to Qualitative Change," Strategy Science, INFORMS, vol. 4(4), pages 253-261, December.
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    Cited by:

    1. Zhang, Cheng & Fang, Jiming & Ge, Shilong & Sun, Guanglin, 2024. "Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 211-227.
    2. Luo, Shuangcheng & Xiong, Zhiqiao & Liu, Jianjiang, 2024. "How does supply chain digitization affect green innovation? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 136(C).
    3. Wang, Haijun & Jiao, Shuaipeng & Ma, Chao, 2024. "The impact of ESG responsibility performance on corporate resilience," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1115-1129.

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    More about this item

    Keywords

    Digital transformation; Manufacturing company competitiveness; Resource-based view; VRIN attributes;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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