IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v197y2023ics0040162523005735.html
   My bibliography  Save this article

Digital transformation drives product quality improvement: An organizational transparency perspective

Author

Listed:
  • Che, Tong
  • Cai, Jingxuan
  • Yang, Rui
  • Lai, Fujun

Abstract

Digital transformation has become an increasingly important driving force for firms' quality improvement. In this study, we propose a theoretical model for quality improvement from the organizational transparency theory perspective and empirically analyze how collaboration in quality activities improves product quality. The results indicate that this type of collaboration enhances product quality by increasing the quality of information disclosure. First, firms that partially collaborate in quality activities are of better quality than those that do not collaborate. When the quality culture is low, increasing the participation of the firm's top management in quality activities can enhance the mediating role of quality information disclosure. Second, the products of firms that fully collaborate in quality activities are of lower quality than those of firms that partially collaborate in quality activities. Finally, when the quality culture is at a high level and top management is highly involved in quality activities, the mediating effect of quality information disclosure is enhanced.

Suggested Citation

  • Che, Tong & Cai, Jingxuan & Yang, Rui & Lai, Fujun, 2023. "Digital transformation drives product quality improvement: An organizational transparency perspective," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:tefoso:v:197:y:2023:i:c:s0040162523005735
    DOI: 10.1016/j.techfore.2023.122888
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162523005735
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2023.122888?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. Brandes, Leif & Darai, Donja, 2017. "The value and motivating mechanism of transparency in organizations," European Economic Review, Elsevier, vol. 98(C), pages 189-198.
    2. Hardcopf, Rick & Liu, Gensheng (Jason) & Shah, Rachna, 2021. "Lean production and operational performance: The influence of organizational culture," International Journal of Production Economics, Elsevier, vol. 235(C).
    3. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    4. Phan, Anh Chi & Abdallah, Ayman Bahjat & Matsui, Yoshiki, 2011. "Quality management practices and competitive performance: Empirical evidence from Japanese manufacturing companies," International Journal of Production Economics, Elsevier, vol. 133(2), pages 518-529, October.
    5. Thomas C. Powell, 1995. "Total quality management as competitive advantage: A review and empirical study," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 15-37.
    6. Pham, Thuy-Dzung T. & Lo, Fang-Yi, 2023. "How does top management team diversity influence firm performance? A causal complexity analysis," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    7. Wu, Ing-Long & Chuang, Cheng-Hung & Hsu, Chien-Hua, 2014. "Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective," International Journal of Production Economics, Elsevier, vol. 148(C), pages 122-132.
    8. Wanda J. Orlikowski, 2000. "Using Technology and Constituting Structures: A Practice Lens for Studying Technology in Organizations," Organization Science, INFORMS, vol. 11(4), pages 404-428, August.
    9. Rijswijk, Kelly & de Vries, Jasper R. & Klerkx, Laurens & Turner, James A., 2023. "The enabling and constraining connections between trust and digitalisation in incumbent value chains," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    10. Andreas I. Nicolaou & D. Harrison McKnight, 2006. "Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use," Information Systems Research, INFORMS, vol. 17(4), pages 332-351, December.
    11. Pagano, Marco & Roell, Ailsa, 1996. "Transparency and Liquidity: A Comparison of Auction and Dealer Markets with Informed Trading," Journal of Finance, American Finance Association, vol. 51(2), pages 579-611, June.
    12. Stratopoulos, Theophanis C. & Wang, Victor Xiaoqi, 2022. "Estimating the duration of competitive advantage from emerging technology adoption," International Journal of Accounting Information Systems, Elsevier, vol. 47(C).
    13. Canbay, Kamile & Akman, Gulsen, 2023. "Investigating changes of total quality management principles in the context of Industry 4.0: Viewpoint from an emerging economy," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    14. Gu, Qiannong & Jitpaipoon, Thawatchai & Yang, Jie, 2017. "The impact of information integration on financial performance: A knowledge-based view," International Journal of Production Economics, Elsevier, vol. 191(C), pages 221-232.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Chonghui & Chai, Binfeng & Mirza, Sultan Sikandar & Jin, Ying, 2024. "Customer-driven value creation in the digital economy: Determining the role of customer firms’ digital transformation on supplier performance in China," Omega, Elsevier, vol. 128(C).
    2. Zhao, Zhihui & Liu, Wei & Ning, Yiyi & Yang, Shiyu, 2024. "Can China go green through digitalization? Evidence from China's listed firms," International Review of Economics & Finance, Elsevier, vol. 94(C).
    3. 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.

    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. M. R. Ibrahim & D. U. Muhammad & B. Muhammad & J. O. Alaezi & J. Agidani, 2023. "The Key to Organizational and construction Excellence: A Study of Total Quality Management," Papers 2305.13104, arXiv.org.
    2. Jagjeev Dosanjh, 2017. "Exchange Initiatives and Market Efficiency: Evidence from the Australian Securities Exchange," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 1-2017, January-A.
    3. Chang-Chih Chen & Kung-Cheng Ho & Hui-Min Li & Min-Teh Yu, 2023. "Impact of information disclosure ratings on investment efficiency: evidence from China," Review of Quantitative Finance and Accounting, Springer, vol. 60(2), pages 471-500, February.
    4. Ho, Kung-Cheng & Yen, Huang-Ping & Lu, Canyi & Lee, Shih-Cheng, 2023. "Does information disclosure and transparency ranking system prevent the default risk of a firm?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1089-1105.
    5. Khor Saw Chin* & Saudah Sofian & Oh Yit Leng, 2018. "The Impact of Total Quality Management on Corporate Performance in Malaysian Public Listed Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 22-30:2.
    6. repec:uts:finphd:34 is not listed on IDEAS
    7. Hong, Jiangtao & Liao, Yi & Zhang, Yibin & Yu, Zhefu, 2019. "The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 212(C), pages 227-235.
    8. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    9. Ho, Kung-Cheng & Sun, Renji & Yang, Lei & Li, Hui-Min, 2023. "Information disclosure as a means of minimizing asymmetric financial reporting: The role of market reaction," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1221-1240.
    10. Ryan Davis & Todd Griffith & Brian Roseman & Serhat Yildiz, 2021. "The effects of exchange listing on market quality: Evidence from over‐the‐counter uplistings," The Financial Review, Eastern Finance Association, vol. 56(4), pages 645-669, November.
    11. Andrew Burton-Jones & Camille Grange, 2013. "From Use to Effective Use: A Representation Theory Perspective," Information Systems Research, INFORMS, vol. 24(3), pages 632-658, September.
    12. Escrig, Ana B. & de Menezes, Lilian M., 2015. "What characterizes leading companies within business excellence models? An analysis of “EFQM Recognized for Excellence” recipients in Spain," International Journal of Production Economics, Elsevier, vol. 169(C), pages 362-375.
    13. Mellat-Parast, Mahour, 2015. "A longitudinal assessment of the linkages among the Baldrige criteria using independent reviewers’ scores," International Journal of Production Economics, Elsevier, vol. 164(C), pages 24-34.
    14. Wang Wenge, 2018. "Board Independence of Listed Companies in the US and China," Asian Journal of Law and Economics, De Gruyter, vol. 9(3), pages 1-21, December.
    15. Oxelheim, Lars & Rafferty, Michael, 2005. "On the static efficiency of secondary bond markets," Journal of Multinational Financial Management, Elsevier, vol. 15(2), pages 117-135, April.
    16. Eunsoo Kim & Suyon Kim & Jaehong Lee, 2021. "Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea," IJERPH, MDPI, vol. 18(19), pages 1-14, September.
    17. Stephen A. Hillegeist & James P. Kavourakis & Matthew Pinnuck, 2023. "The association between quarter length, forecast errors, and firms’ voluntary disclosures," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 1885-1918, June.
    18. Caroline Flammer & Michael W. Toffel & Kala Viswanathan, 2021. "Shareholder activism and firms' voluntary disclosure of climate change risks," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1850-1879, October.
    19. Florian Meier, 2020. "The Age of Cheap Money and Passive Investing: Are Pro Forma Earnings Value Relevant?," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 9(2), pages 1-1.
    20. Bikki Jaggi & Alessandra Allini & Riccardo Macchioni & Annamaria Zampella, 2018. "Do investors find carbon information useful? Evidence from Italian firms," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 1031-1056, May.
    21. Aziz Barhmi & Omar Hajaji, 2023. "Multidisciplinary Approach to Supply Chain Resilience: Conceptualization and Scale Development," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 43-69.

    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:tefoso:v:197:y:2023:i:c:s0040162523005735. 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.sciencedirect.com/science/journal/00401625 .

    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.