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A Study on the Impact of Different Organizational Levels on Digital Transformation in Enterprises

Author

Listed:
  • Dexin Huang

    (Department of Business Administration, Jinan University, Guangzhou 510632, China)

  • Qing Gao

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Chengqi Peng

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Kexuan Yang

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Renhuai Liu

    (MOE Key Laboratory of Disaster Forecast and Control in Engineering, School of Mechanics and Construction Engineering, Jinan University, Guangzhou 510632, China)

Abstract

Based on data from A-share listed companies in Shanghai and Shenzhen between 2007 and 2020, this study categorizes enterprises into decision-making and execution levels. We found that a high degree of digital transformation at the decision-making level enhances enterprise performance, while excessive transformation at the execution level diminishes performance. We tested the influence of the digital transformation degree of the decision-making layer and the executive layer on enterprise performance by constructing an econometric model. The mechanism behind the results was tested, and the influence mechanism between digital transformation and enterprise performance was explored from the perspective of TOE theory. Mechanism analysis showed that digital transformation impacts performance by increasing R&D investment, driving revenue growth, and enabling the efficient use of government subsidies. Managing decision-level expenses also strengthens performance and supports digital transformation. This research offers fresh insights into how technology drives digital transformation in a changing external environment, guiding management at different hierarchical levels in enterprises.

Suggested Citation

  • Dexin Huang & Qing Gao & Chengqi Peng & Kexuan Yang & Renhuai Liu, 2023. "A Study on the Impact of Different Organizational Levels on Digital Transformation in Enterprises," Sustainability, MDPI, vol. 15(23), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16212-:d:1285678
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    References listed on IDEAS

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    4. Ryan Raffaelli & Mary Ann Glynn & Michael Tushman, 2019. "Frame flexibility: The role of cognitive and emotional framing in innovation adoption by incumbent firms," Strategic Management Journal, Wiley Blackwell, vol. 40(7), pages 1013-1039, July.
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