IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v73y2025ipbs0275531924004380.html
   My bibliography  Save this article

Broadband infrastructure and enterprise digital transformation: Evidence from China

Author

Listed:
  • Li, Meng
  • Wang, Zhengqi
  • Shu, Linhan
  • Gao, Haoyu

Abstract

Broadband infrastructure, as a basis of digital economic development, plays an important role in accelerating the enterprise digital transformation. Using the “Broadband China” strategy as a quasi-natural experiment, this paper investigates whether and how the broadband infrastructure affects enterprise digital transformation. We find that the construction of broadband infrastructure significantly increases enterprise digital transformation. The underlying mechanism is that the broadband infrastructure mitigates transformation costs and facilitates competition among peers within the same industry, thereby promoting enterprise digital transformation from both active and passive aspects. The effect is magnified when enterprises are small-scale, non-SOEs and in high-tech or technology-intensive sectors. Under the rapid development of the digital economy, this paper contributes to the economic consequences of the broadband infrastructure and offers empirical support for enterprise digital transformation.

Suggested Citation

  • Li, Meng & Wang, Zhengqi & Shu, Linhan & Gao, Haoyu, 2025. "Broadband infrastructure and enterprise digital transformation: Evidence from China," Research in International Business and Finance, Elsevier, vol. 73(PB).
    • Handle: RePEc:eee:riibaf:v:73:y:2025:i:pb:s0275531924004380
    DOI: 10.1016/j.ribaf.2024.102645
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924004380
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102645?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cai, Yongbin & Luo, Na & Xie, Xuejing & Gong, Yukai, 2024. "Chairman's IT background and enterprise digital transformation: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    2. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    3. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    4. Guo, Bingnan & Feng, Yu & Lin, Ji, 2023. "Digital inclusive finance and digital transformation of enterprises," Finance Research Letters, Elsevier, vol. 57(C).
    5. Xu, Tianli & Xu, Longbing & Zhu, Siyuan, 2023. "Common ownership and executive pay-for-performance sensitivity: Evidence from China," Research in International Business and Finance, Elsevier, vol. 65(C).
    6. Niu, Geng & Jin, XiaoShu & Wang, Qi & Zhou, Yang, 2022. "Broadband infrastructure and digital financial inclusion in rural China," China Economic Review, Elsevier, vol. 76(C).
    7. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    8. Zhou, Kuo & Wang, Qiaochu & Tao, Yunqing & Li, Xiaofan, 2024. "Information infrastructure construction and firm export performance in China," Research in International Business and Finance, Elsevier, vol. 70(PA).
    9. Liu, Shasha & Zhao, Huixian & Kong, Gaowen, 2023. "Enterprise digital transformation, breadth of ownership and stock price volatility," International Review of Financial Analysis, Elsevier, vol. 89(C).
    10. Troise, Ciro & Corvello, Vincenzo & Ghobadian, Abby & O'Regan, Nicholas, 2022. "How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    11. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    12. Jiang, Yan & Wang, Jiaxin & Huang, Yibo, 2024. "Does religious atmosphere affect enterprise digital transformation? Evidence from China," Research in International Business and Finance, Elsevier, vol. 70(PB).
    13. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    14. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    15. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    16. Zhao, Shuang & Zhang, Liqun & Peng, Lin & Zhou, Haiyan & Hu, Feng, 2024. "Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises," Technology in Society, Elsevier, vol. 77(C).
    17. Luo, Wenbing & Yu, Yuxin & Deng, Mingjun, 2024. "The impact of enterprise digital transformation on risk-taking: Evidence from China," Research in International Business and Finance, Elsevier, vol. 69(C).
    18. Tang, Ye & Geng, Baiyang, 2024. "Digital finance development level and corporate debt financing cost," Finance Research Letters, Elsevier, vol. 60(C).
    19. Munir Mandviwalla & Richard Flanagan, 2021. "Small business digital transformation in the context of the pandemic," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(4), pages 359-375, July.
    20. Junjie Hong & Shihe Fu, 2011. "Information and Communication Technologies and the Geographical Concentration of Manufacturing Industries," Urban Studies, Urban Studies Journal Limited, vol. 48(11), pages 2339-2354, August.
    21. Tao, Yunqing & Kong, Dongmin & Sun, Nan & Li, Xiaofan, 2024. "Social credit and corporate risk-taking: Evidence from China," Research in International Business and Finance, Elsevier, vol. 69(C).
    22. Niu, Yuhao & Wang, Sai & Wen, Wen & Li, Sifei, 2023. "Does digital transformation speed up dynamic capital structure adjustment? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    23. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    24. Acheampong, Alex O. & Opoku, Eric Evans Osei & Dzator, Janet & Kufuor, Nana Kwabena, 2022. "Enhancing human development in developing regions: Do ICT and transport infrastructure matter?," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    25. K. J. Martijn Cremers & Vinay B. Nair & Urs Peyer, 2008. "Takeover Defenses and Competition: The Role of Stakeholders," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 5(4), pages 791-818, December.
    26. Xu, Shengxiang & Chen, Hsinghung & Dong, Shuli & Guo, Zizheng, 2023. "Can upgrading information infrastructure improve the innovation ability of companies? Empirical evidence from China," Telecommunications Policy, Elsevier, vol. 47(6).
    27. Chen, Kaixuan & Zhang, Shushan, 2024. "How does open public data impact enterprise digital transformation?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 178-190.
    28. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    29. Tian, Xiaohan & Lu, Haiyong, 2023. "Digital infrastructure and cross-regional collaborative innovation in enterprises," Finance Research Letters, Elsevier, vol. 58(PC).
    30. Yang, Guang-Zhao & Si, Deng-Kui & Ning, Guang-Jie, 2023. "Does digital transformation reduce the labor income share in enterprises?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1526-1538.
    31. Staab, Philipp & Thiel, Thorsten, 2022. "Social Media and the Digital Structural Transformation of the Public Sphere," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39(4), pages 129-143.
    32. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    33. Saeed, Asif & Alnori, Faisal & Yaqoob, Gohar, 2023. "Corporate social responsibility, industry concentration, and firm performance: Evidence from emerging Asian economies," Research in International Business and Finance, Elsevier, vol. 64(C).
    34. Wang, Lianghu & Shao, Jun, 2024. "The energy saving effects of digital infrastructure construction: Empirical evidence from Chinese industry," Energy, Elsevier, vol. 294(C).
    35. Cheng, Yiran & Zhou, Xiaorui & Li, Yongjian, 2023. "The effect of digital transformation on real economy enterprises’ total factor productivity," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 488-501.
    36. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    37. Yanru Li & Guanglin Sun & Qiang Gao & Changming Cheng, 2023. "Digital Financial Inclusion, Financial Efficiency and Green Innovation," Sustainability, MDPI, vol. 15(3), pages 1-13, January.
    38. Wang, Shucui & Song, Yutong & Min Du, Anna & Liang, Jia, 2024. "The digital economy and entrepreneurial dynamics: An empirical analysis of urban regions in China," Research in International Business and Finance, Elsevier, vol. 71(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fu, Yumei & Guo, Chun, 2025. "Booster or trapper? Corporate digital transformation and capital allocation efficiency," Research in International Business and Finance, Elsevier, vol. 73(PB).
    2. Suo, Xuekun & Zhang, Longting & Guo, Rong & Lin, Han & Yu, Mingchuan & Du, Xiuhong, 2024. "The inverted U-shaped association between digital economy and corporate total factor productivity: A knowledge-based perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    3. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    4. Zhang, Linyan & Hu, Chunyu & Guo, Chuanyin & Wang, Jianguo, 2024. "Digital economy, technical change and total factor productivity: Empirical evidence from high-tech industry in China," Telecommunications Policy, Elsevier, vol. 48(9).
    5. Guo, Bingnan & Wang, Yu & Zhang, Hao & Liang, Chunyan & Feng, Yu & Hu, Feng, 2023. "Impact of the digital economy on high-quality urban economic development: Evidence from Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    6. Yuan, Sai & Zhou, Ran & Li, Mengna & Lv, Chengchao, 2023. "Investigating the influence of digital technology application on employee compensation," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    7. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2023. "Digital economy, agglomeration, and entrepreneurship in Chinese cities," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 359-370, January.
    8. Guo, Bingnan & Hu, Peiji & Lin, Ji, 2024. "The effect of digital infrastructure development on enterprise green transformation," International Review of Financial Analysis, Elsevier, vol. 92(C).
    9. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    10. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    11. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    12. Xing, Zeyu & Yalçin, Haydar & Daim, Tugrul, 2024. "Digital Economy's influence on R&D Network configurations: Integrating resource dependence theory and institutional theory," Technovation, Elsevier, vol. 137(C).
    13. Zhu, Xiumei & Li, Yue, 2023. "The use of data-driven insight in ambidextrous digital transformation: How do resource orchestration, organizational strategic decision-making, and organizational agility matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    14. Jiang, Weijie & Li, Jiaye, 2024. "Digital transformation and its effect on resource allocation efficiency and productivity in Chinese corporations," Technology in Society, Elsevier, vol. 78(C).
    15. Liu, Jingling & Chen, Yanying & Liang, Feng Helen, 2023. "The effects of digital economy on breakthrough innovations: Evidence from Chinese listed companies," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    16. Guo, Xiaochuan & Li, Mengmeng & Wang, Yanlin & Mardani, Abbas, 2023. "Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia," Journal of Business Research, Elsevier, vol. 163(C).
    17. Rialti, Riccardo & Filieri, Raffaele, 2024. "Leaders, let’s get agile! Observing agile leadership in successful digital transformation projects," Business Horizons, Elsevier, vol. 67(4), pages 439-452.
    18. Yang, Jinxuan & Hui, Ning, 2024. "How digital finance affects the sustainability of corporate green innovation," Finance Research Letters, Elsevier, vol. 63(C).
    19. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    20. Malodia, Suresh & Mishra, Mahima & Fait, Monica & Papa, Armando & Dezi, Luca, 2023. "To digit or to head? Designing digital transformation journey of SMEs among digital self-efficacy and professional leadership," Journal of Business Research, Elsevier, vol. 157(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:73:y:2025:i:pb:s0275531924004380. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.