Employee satisfaction and digital transformation: Evidence from China’s Top 100 Best Employers list

Ce Cao, Duxuan Zeng, Qiong Wan and Yifei Li

Journal of Asian Economics, 2024, vol. 94, issue C

Abstract: Using a sample of Shanghai and Shenzhen A-share listed enterprises from 2011 to 2020, this study measures listed enterprises’ employee satisfaction according to whether they were included in China’s Top 100 Best Employers (Top 100) list to investigate the impact of employee satisfaction on enterprises’ digital transformation. The study determines that enterprises on the Top 100 list with high employee satisfaction are correlated with driving digital transformation. This conclusion remains valid after considering endogeneity and conducting various robustness tests, supporting the stakeholder theory hypothesis. Mechanism tests demonstrate that employee satisfaction promotes enterprise digital transformation through three mechanism channels of human capital agglomeration, technological innovation, and mitigation of managerial myopia. The heterogeneity analysis reveals that employee satisfaction promotes enterprises’ digital transformation more significantly in non-state-owned enterprises, enterprises with high industry concentration, and those with high research and development intensity. Furthermore, enterprises with higher employee satisfaction exhibit better financial status, which improves innovation efficiency, increases income, and promotes scale expansion.

Keywords: Employee satisfaction; Digital transformation; Human capital; Technological innovation (search for similar items in EconPapers)
JEL-codes: C23 D21 J28 L25 M54 O32 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:94:y:2024:i:c:s1049007824000861

DOI: 10.1016/j.asieco.2024.101791

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