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

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  • 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
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    References listed on IDEAS

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    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.

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