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The Impact of New Energy Enterprises’ Digital Transformation on Their Total Factor Productivity: Empirical Evidence from China

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  • Yangjun Ren

    (School of Economics and Trade, Changzhou Vocational Institute of Textile and Garment, Changzhou 213164, China)

  • Xin Zhang

    (Business School, Changzhou University, Changzhou 213164, China)

  • Hui Chen

    (Department of Education, Nanjing University, Nanjing 210008, China)

Abstract

As digital technologies disrupt one sector after another, an increasing number of new energy enterprises are positively embracing digital transformation. However, it remains unclear whether digital transformation drives enterprise total factor productivity. To fill this gap, using a dataset of Chinese A-share listed new energy enterprises from 2009 to 2021, we investigate theimpact of digital transformation on a firm’s total factor productivity. The results show that there is a promoting effect of digital transformation on new energy enterprises’ total factor productivity. The promoting effect is significant only in the state-owned firms and the eastern region. Further, we demonstrate that when a firm has digital transformation, it has a higher operating efficiency, lower cost, and greater innovation power leading to higher total factor productivity. This research elucidates the role of digital transformation in fostering the new energy industry’s growth and provides meaningful suggestions for improving the effectiveness of digital transformation in new energy enterprises.

Suggested Citation

  • Yangjun Ren & Xin Zhang & Hui Chen, 2022. "The Impact of New Energy Enterprises’ Digital Transformation on Their Total Factor Productivity: Empirical Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:13928-:d:954071
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    4. Pingkuo Liu & Jiahao Wu, 2023. "Game Analysis on Energy Enterprises’ Digital Transformation—Strategic Simulation for Guiding Role, Leading Role and Following Role," Sustainability, MDPI, vol. 15(13), pages 1-33, June.
    5. Guoen Xia & Zenghui Yu & Xuwu Peng, 2023. "How Does Enterprise Digital Transformation Affect Total Factor Productivity? Based on the Information Intermediary Role of Analysts’ Attention," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    6. 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.

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