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The Impact of Digital Transformation on Total Factor Productivity of Automobile Manufacturing Enterprises in China

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  • Shuangjie Li
  • Tianhui Zhang

Abstract

This paper conducts a study on the impact of digital transformation on the total factor productivity (TFP) of Chinese automobile manufacturing enterprises based on the sample data of 49 enterprises listed in the Chinese automobile manufacturing a-share companies from 2012 to 2023. It is found that the digital transformation of automobile manufacturing enterprises has a significant positive impact on the improvement of their TFP level. The mechanism effect model shows that the improvement of enterprise innovation ability and the reduction of financing constraints are the mechanism paths of digital transformation to improve TFP. The moderating effect model suggests that corporate solvency plays a positive moderating role in the positive impact of digital transformation on TFP. The threshold effect model shows that the positive impact of digital transformation on TFP is non-linear. Heterogeneity analysis shows that digital transformation has a more significant positive impact on the TFP of enterprises in the four major urban agglomerations and new energy automobile enterprises. Based on the conclusions of the study, targeted policy recommendations are put forward to provide reference for automobile manufacturing enterprises to carry out digital transformation and improve TFP. Â JEL classification numbers: C12, M21.

Suggested Citation

  • Shuangjie Li & Tianhui Zhang, 2025. "The Impact of Digital Transformation on Total Factor Productivity of Automobile Manufacturing Enterprises in China," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 15(2), pages 1-6.
  • Handle: RePEc:spt:admaec:v:15:y:2025:i:2:f:15_2_6
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    References listed on IDEAS

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    More about this item

    Keywords

    Automobile Manufacturing; Digital Transformation; Total factor productivity of enterprises.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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