Impact of the Digital Transformation of Small- and Medium-Sized Listed Companies on Performance: Based on a Cost-Benefit Analysis Framework

The ultimate goals of digital transformation, which is the only means of realizing the sustainable development of current enterprises, are to achieve cost reduction, efficiency improvement, and innovation for enterprises. However, there are limited empirical quantitative studies on the investment costs and impact of organizational performance related to the digital transformation of small- and medium-sized listed companies. This study first uses Excel VBA to sort the digital transformation panel data of 319 small- and medium-sized listed companies in China’s Shanghai and Shenzhen A-share markets from 2007 to 2020. Thereafter, Stata, a general-purpose statistical software package, is used to analyze the impact of digital transformation on the performance of small- and medium-sized listed companies. The results show that the digital transformation of small- and medium-sized listed companies has a positive correlation with operational performance, and an inverted U-shaped relationship with innovation performance; however, the U-shaped relationship with financial performance is not significant. For small- and medium-sized listed companies to promote digital transformation, first, it must help the organization to improve its internal operational efficiency; second, it can optimize and improve the organization’s financial efficiency; and finally, through innovative efficiency, the organization can continue to develop steadily and improve its organizational resilience.