Government Attention, Market Competition and Firm Digital Transformation

Xuejun Jin and Xiao Pan ()
Additional contact information
Xuejun Jin: School of Economics, Zhejiang University, Hangzhou 310027, China
Xiao Pan: School of Economics, Zhejiang University, Hangzhou 310027, China

Sustainability, 2023, vol. 15, issue 11, 1-27

Abstract: Clarifying the driving factors of enterprise digital transformation can help us understand the real driving forces of industrial digitization and digital industrialization, improve the implementation of industrial policies, and narrow the digital divide between different regions and firms to facilitate high-quality and sustainable development. Based on 38,891 news items from provincial and municipal governments in China, this paper uses text analysis to depict the government’s attention to the digital economy and explore the influencing factors driving digital transformation. In the empirical analysis, government attention to the digital economy positively impacts enterprise digital transformation primarily through fiscal expenditures on science and technology, the digital economy level, the digital financial inclusion level, industrial agglomeration, and firm nature. The positive impact of market competition on enterprise digital transformation is significant for small-scale firms. The insight from this finding is that enterprise digital transformation cannot be solved entirely by market forces but also needs to be led by digital industrial policies with government attention.

Keywords: digital transformation; government attention; market competition; text analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/11/9057/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/11/9057/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:11:p:9057-:d:1163317

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().