Assessing the Impact of Digital Transformation on Manufacturing Enterprises’ Performances: An Efficiency Perspective

Abstract

In recent years, the impacts of the new scientific and technological revolution on the industrial system and production modes have begun to emerge. Digital transformation is gradually being integrated into the production behaviors of manufacturing enterprises and has become a component of the micro-economy. We aim to find better methods for measuring digital transformation and to analyze its impact on both market performance and innovation performance within manufacturing enterprises. To achieve our goals, we employ an empirical study to examine the influence of digital transformation on market and innovation performance using panel data for Chinese listed manufacturing enterprises from 2012 to 2021. We emphasize digital transformation efficiency and affirm its role in relieving financing constraints. Our study shows that digital transformation effectively improves both the market and innovation performance of manufacturing enterprises. Moreover, it mitigates the financing constraint dilemma, resulting in performance enhancement. Heterogeneity analysis indicates that digital transformation has a more significant promotional effect on the market and innovation performance of large-scale and mature enterprises. Our research offers fresh perspectives for better understanding digital transformation, enriching the body of work on the impact of digital transformation in manufacturing enterprises and its underlying mechanisms.