IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i23p16212-d1285678.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/23/16212/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/23/16212/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas C. Powell & Anne Dent‐Micallef, 1997. "Information technology as competitive advantage: the role of human, business, and technology resources," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 375-405, May.
    2. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    3. 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.
    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. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    2. Syed Ghulam Meran Shah & Muddassar Sarfraz & Larisa Ivascu, 2021. "Assessing the interrelationship corporate environmental responsibility, innovative strategies, cognitive and hierarchical CEO: A stakeholder theory perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 457-473, January.
    3. Manis, K.T. & Madhavaram, Sreedhar, 2023. "AI-Enabled marketing capabilities and the hierarchy of capabilities: Conceptualization, proposition development, and research avenues," Journal of Business Research, Elsevier, vol. 157(C).
    4. Schweizer, Roger & Vahlne, Jan-Erik, 2022. "Non-linear internationalization and the Uppsala model – On the importance of individuals," Journal of Business Research, Elsevier, vol. 140(C), pages 583-592.
    5. Feifei Jiang & Donghan Wang & Zelong Wei, 2022. "How Yin-Yang cognition affects organizational ambidexterity: the mediating role of strategic flexibility," Asia Pacific Journal of Management, Springer, vol. 39(4), pages 1187-1214, December.
    6. Matthew P. Mount & Markus Baer & Matthew J. Lupoli, 2021. "Quantum leaps or baby steps? Expertise distance, construal level, and the propensity to invest in novel technological ideas," Strategic Management Journal, Wiley Blackwell, vol. 42(8), pages 1490-1515, August.
    7. Timothy E. Ott & Kathleen M. Eisenhardt, 2020. "Decision weaving: Forming novel, complex strategy in entrepreneurial settings," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2275-2314, December.
    8. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    9. Giovanni Gavetti & Constance E. Helfat & Luigi Marengo, 2017. "Searching, Shaping, and the Quest for Superior Performance," Strategy Science, INFORMS, vol. 2(3), pages 194-209, September.
    10. Gavin M Schwarz & Karin Sanders & Dave Bouckenooghe, 2020. "In the driving seat: Executive’s perceived control over environment," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 317-342, May.
    11. Drummond, Conor & O'Toole, Thomas & McGrath, Helen, 2022. "Social Media resourcing of an entrepreneurial firm network: Collaborative mobilisation processes," Journal of Business Research, Elsevier, vol. 145(C), pages 171-187.
    12. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    13. Nicodemus M. Mutinda & James M. Kilika, 2019. "TMT Cognitive Capability and Organizational Outcomes: A Theoretical Review," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 31-52, August.
    14. MacLean, Donald, 2017. "Capacidades dinâmicas, ação criativa e poética," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 57(3), May.
    15. Luciana Aparecida Barbieri da Rosa & Clandia Maffini Gomes & Waleska Campos & Carolina Rodrigues & Tais Pentiado Godoy & Jordana Marques Kneipp, 2022. "Influencing Factors of The Innovation Power in the Adoption of Sustainability Strategies," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    16. Jolien Roelandt & Petra Andries & Mirjam Knockaert, 2022. "The contribution of board experience to opportunity development in high-tech ventures," Small Business Economics, Springer, vol. 58(3), pages 1627-1645, March.
    17. Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    18. Joon Mahn Lee & Jung Chul Park & Guoli Chen, 2023. "A cognitive perspective on real options investment: CEO overconfidence," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1084-1110, April.
    19. Bui Thi Minh Thu & Nguyen Thi Bich Thu, 2023. "The effect of the relationship between integrating information systems and total quality management on company organizational performance in Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 13(2), pages 145-160.
    20. Felipe A. Csaszar & Daniel A. Levinthal, 2016. "Mental representation and the discovery of new strategies," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2031-2049, October.

    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:gam:jsusta:v:15:y:2023:i:23:p:16212-:d:1285678. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.