IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i4p3124-d1062226.html
   My bibliography  Save this article

The Impact of Digital Transformation on Manufacturing-Enterprise Innovation: Empirical Evidence from China

Author

Listed:
  • Xingguang Guo

    (School of Business, Nanjing University, Gulou District, Nanjing 210093, China)

  • Xi Chen

    (School of Business, Nanjing University, Gulou District, Nanjing 210093, China)

Abstract

The industrial sector is now undergoing digital revolution and upgrade, and it is of strategic significance to study how enterprise digitalization affects enterprise innovation. This paper develops a theoretical model of how digital transformation affects innovation in manufacturing enterprises, based on the resource-based view, network-embeddedness theory, and resource-complementarity theory. It then tests the mechanism and boundary conditions of the model, using data from a World Bank survey of Chinese enterprises. The study reveals how the degree of e-commerce embeddedness might partially mediate the effect of digital transformation on the innovation of manufacturing companies. Managerial human capital positively moderates the effect of digital transformation on manufacturing enterprises’ independent-R&D investment and product-innovation output. Employee human capital significantly and positively moderates the effect of digital transformation on manufacturing enterprises’ product-innovation output, while negatively moderating the effect of digital transformation on manufacturing enterprises’ cooperative-R&D investment. The conclusions can expand the relevant theoretical research on digital transformation and enterprise innovation, and also provide practical enlightenment for the digital transformation and upgrading of manufacturing enterprises.

Suggested Citation

  • Xingguang Guo & Xi Chen, 2023. "The Impact of Digital Transformation on Manufacturing-Enterprise Innovation: Empirical Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3124-:d:1062226
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/4/3124/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/4/3124/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Haaker, Timber & Ly, Pham Thi Minh & Nguyen-Thanh, Nhan & Nguyen, Hanh Thi Hong, 2021. "Business model innovation through the application of the Internet-of-Things: A comparative analysis," Journal of Business Research, Elsevier, vol. 126(C), pages 126-136.
    3. Massimiliano Bratti & Giulia Felice, 2012. "Are Exporters More Likely to Introduce Product Innovations?," The World Economy, Wiley Blackwell, vol. 35(11), pages 1559-1598, November.
    4. Long Xue & Qianyu Zhang & Xuemang Zhang & Chengyu Li, 2022. "Can Digital Transformation Promote Green Technology Innovation?," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    5. T. Ravichandran & Shu Han & Sunil Mithas, 2017. "Mitigating Diminishing Returns to R&D: The Role of Information Technology in Innovation," Information Systems Research, INFORMS, vol. 28(4), pages 812-827, December.
    6. Landon Kleis & Paul Chwelos & Ronald V. Ramirez & Iain Cockburn, 2012. "Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity," Information Systems Research, INFORMS, vol. 23(1), pages 42-59, March.
    7. Jaime Gómez & Idana Salazar & Pilar Vargas, 2017. "Does Information Technology Improve Open Innovation Performance? An Examination of Manufacturers in Spain," Information Systems Research, INFORMS, vol. 28(3), pages 661-675, September.
    8. Haihua Liu & Peng Wang & Zejun Li, 2021. "Is There Any Difference in the Impact of Digital Transformation on the Quantity and Efficiency of Enterprise Technological Innovation? Taking China’s Agricultural Listed Companies as an Example," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    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. Linxuan Yu & Jing Xu & Xiang Yuan, 2024. "Sustainable Digital Shifts in Chinese Transport and Logistics: Exploring Green Innovations and Their ESG Implications," Sustainability, MDPI, vol. 16(5), pages 1-21, February.
    2. Shan Wu & Ying Li, 2023. "A Study on the Impact of Digital Transformation on Corporate ESG Performance: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    3. Muhammad Asif & Liu Yang & Muhammad Hashim, 2024. "The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China," Sustainability, MDPI, vol. 16(7), pages 1-31, March.
    4. Qin Yang & Shanyue Jin, 2024. "Exploring the Impact of Digital Transformation on Manufacturing Environment, Social Responsibility, and Corporate Governance Performance: The Moderating Role of Top Management Teams," Sustainability, MDPI, vol. 16(11), pages 1-22, May.

    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. Genghua Tang & Hongxun Mai, 2022. "How Does Manufacturing Intelligentization Influence Innovation in China from a Nonlinear Perspective and Economic Servitization Background?," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    2. Wang, Chong & Wang, Lei, 2024. "Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 349-362.
    3. Tao Feng, 2023. "Do Intelligent Manufacturing Concerns Promote Corporate Sustainability? Based on the Perspective of Green Innovation," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    4. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    5. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    6. Chong Wang & Lei Wang, 2024. "State‐led urbanization and technological innovation: A quasi‐natural experiment from county‐to‐district conversion in China," Growth and Change, Wiley Blackwell, vol. 55(2), June.
    7. Khanna, Rupika & Sharma, Chandan, 2024. "Beyond information technology and productivity paradox: Analysing the channels of impact at the firm-level," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    8. Marius Stoffels & Jens Leker, 2018. "The Impact Of It Assets On Innovation Performance – The Mediating Role Of Developmental Culture And Absorptive Capacity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(08), pages 1-21, December.
    9. Wan, Qunchao & Tang, Shiyi & Jiang, Zhenwu, 2023. "Does the development of digital technology contribute to the innovation performance of China's high-tech industry？," Technovation, Elsevier, vol. 124(C).
    10. Qianxiao Zhang & Yixue Duan, 2023. "How Digitalization Shapes Export Product Quality: Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    11. Bartosz Wachnik & Aleksandra Krupa & Krzysztof Santarek, 2022. "A Comparative Analysis of the Acquisition Transaction of Management Information Systems through Virtual and Face-to-Face Negotiations—The Perspective of Green IT Industry in Poland," Sustainability, MDPI, vol. 14(15), pages 1-12, August.
    12. Chenzhang Bao & Indranil R. Bardhan, 2022. "Performance of Accountable Care Organizations: Health Information Technology and Quality–Efficiency Trade-Offs," Information Systems Research, INFORMS, vol. 33(2), pages 697-717, June.
    13. Terence J. V. Saldanha & Dongwon Lee & Sunil Mithas, 2020. "Aligning Information Technology and Business: The Differential Effects of Alignment During Investment Planning, Delivery, and Change," Information Systems Research, INFORMS, vol. 31(4), pages 1260-1281, December.
    14. T. Ravichandran & Simona Ileana Giura, 2019. "Knowledge Transfers in Alliances: Exploring the Facilitating Role of Information Technology," Information Systems Research, INFORMS, vol. 30(3), pages 726-744, September.
    15. Sunil Mithas & Jonathan Whitaker & Ali Tafti, 2017. "Information Technology, Revenues, and Profits: Exploring the Role of Foreign and Domestic Operations," Information Systems Research, INFORMS, vol. 28(2), pages 430-444, June.
    16. Terence J. V. Saldanha & Arvin Sahaym & Sunil Mithas & Mariana Giovanna Andrade-Rojas & Abhishek Kathuria & Hsiao-Hui Lee, 2020. "Turning Liabilities of Global Operations into Assets: IT-Enabled Social Integration Capacity and Exploratory Innovation," Information Systems Research, INFORMS, vol. 31(2), pages 361-382, June.
    17. Jaime Gómez & Idana Salazar & Pilar Vargas, 2017. "Does Information Technology Improve Open Innovation Performance? An Examination of Manufacturers in Spain," Information Systems Research, INFORMS, vol. 28(3), pages 661-675, September.
    18. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre.
    19. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    20. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(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:gam:jsusta:v:15:y:2023:i:4:p:3124-:d:1062226. 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.