IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-04536-1.html
   My bibliography  Save this article

Can state ownership help facilitate the digital transformation of private sector enterprises? Evidence from China

Author

Listed:
  • Shuang Huang

    (Chongqing University)

  • Han Yu

    (Southwest University)

  • Zheng Zhang

    (Shandong Technology and Business University)

  • Yedong Feng

    (Chongqing University)

Abstract

This study investigates the role of state ownership in driving the digital transformation of private sector enterprises (PSEs) in China, using data from A-share listed firms between 2012 and 2022. Digital transformation is critical for PSEs to maintain competitiveness in an increasingly technology-driven economy, and state ownership provides unique resources and strategic support to achieve this. Our analysis reveals that state ownership enhances PSEs’ adoption of innovative technologies, with its impact varying by investor type. When acting as a strategic investor, state ownership significantly facilitates digital transformation, whereas its role as a financial investor has a more limited effect. This influence is stronger in cities with favorable business environments and in emerging industries. Furthermore, state ownership helps mitigate risks from policy uncertainty and boosts innovation outputs, ultimately driving greater digital transformation. These findings underscore the strategic importance of state ownership in fostering technological advancement and resilience in PSEs.

Suggested Citation

  • Shuang Huang & Han Yu & Zheng Zhang & Yedong Feng, 2025. "Can state ownership help facilitate the digital transformation of private sector enterprises? Evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04536-1
    DOI: 10.1057/s41599-025-04536-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-04536-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-025-04536-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04536-1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.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.