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A Study of the Impact of Manufacturing Input Digitization on Firms’ Organizational Resilience: Evidence from China

Author

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  • Keyong Zhang

    (School of Economics and Management, North University of China, Taiyuan 030051, China)

  • Jie Wang

    (School of Economics and Management, North University of China, Taiyuan 030051, China)

  • Yunxia Wu

    (School of Economics and Management, North University of China, Taiyuan 030051, China)

Abstract

In the era of digital economy, boosting investment in digitalization serves as a crucial approach for the manufacturing sector to bolster its robustness and forge competitive edges. Utilizing data from listed manufacturing firms spanning 2007–2022, this paper investigates how the digital transformation of manufacturing inputs influences the organizational resilience of businesses and the underlying mechanism. The findings indicate that investment in digital technologies significantly enhances organizational resilience. The mechanism analysis suggests that investing in digitization will enhance organizational resilience by increasing the firm’s technological innovation capacity, and thus financial redundancy positively moderates the positive impact of digitization on organizational resilience. Heterogeneity analysis shows that there is heterogeneity among different enterprise sizes and industry intensities; enterprises should adjust their digitalization investment strategies in a timely manner according to their industries and enterprise sizes to strengthen and consolidate their organizational resilience. The results of this research provide practical proof and guidance for the development of the manufacturing sector, small and medium-sized enterprises (SMEs), and the strengthening of organizational resilience.

Suggested Citation

  • Keyong Zhang & Jie Wang & Yunxia Wu, 2025. "A Study of the Impact of Manufacturing Input Digitization on Firms’ Organizational Resilience: Evidence from China," Sustainability, MDPI, vol. 17(3), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:897-:d:1574047
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