Differentiated digital transformation strategies in manufacturing: The impact of firm ownership on productivity

As information technology rapidly advances, digital transformation has become an important trend in enterprise development globally, particularly for manufacturing firms aiming to enhance productivity and competitiveness. This study examines the impact of digital transformation on the production efficiency of Chinese listed manufacturing enterprises from 2011 to 2021, employing a dynamic common factor model and a panel data quantile regression model. The findings reveal a path-dependent relationship between digital transformation and production efficiency, with limited improvements observed at lower efficiency levels. However, once production efficiency reaches a certain threshold, the effect of digital transformation in enhancing productivity becomes increasingly significant. Moreover, the study highlights the heterogeneity of digital transformation's impact across different ownership structures. High-tech state-owned and private enterprises significantly benefit from cost reduction, innovation, alleviation of financial constraints, and improvements in decision-making and human capital. In contrast, non-high-tech state-owned enterprises exhibit limited improvements in cost reduction and decision-making, while non-high-tech private enterprises show limited productivity gains from human capital development. These findings emphasise the necessity of aligning digital transformation strategies with ownership characteristics, offering valuable insights for policymakers and management practices seeking to optimise the impact of digital transformation.