Corporate Decision on Digital Transformation: The Impact of Non-Market Factors

Luyao Zhang (), Alfredo Jimenez, Xavier Ordeñana and Seongjin Choi
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Luyao Zhang: College of Wealth Management, Ningbo University of Finance and Economics, Ningbo 315175, China
Alfredo Jimenez: Department of Management, Kedge Business School, Bordeaux Campus, 33405 Talence, France
Xavier Ordeñana: ESPAE Graduate School of Management, Escuela Superior Politecnica del Litoral, Guayaquil 090112, Ecuador
Seongjin Choi: School of Business, Hanyang University, Seoul 04763, Republic of Korea

Sustainability, 2023, vol. 15, issue 24, 1-20

Abstract: This multiple regression study investigated the relationship between the political network and the adoption of digital transformation strategy and if moderated by perceived corruption and political ideology of top managers among diverse enterprises in China. The aim of this study is to contribute to strategic management research on non-market factors of digital transformation. The instruments used for the study were political network relationships, digital transformation strategies, perceived corruption, economic conservatism, cultural conservatism, social conservatism, and meritocracy of top managers. A basic regression model is a causality test between the political network and digital transformation. In addition, moderated multiple regression analysis with factor analysis to analyze moderator variables perceived corruption and political ideology and their interaction with the political network and effect on digital transformation. The study included 214 firms as a convenience sample. Practical significance indicates that the firm with a higher level of political network relationships is more likely to conduct digital transformation and the higher level of top manager’s perceived corruption and economic conservatism mitigates the positive impact of the political network on digital transformation, while the higher level of top manager’s meritocracy tendency strengthens the positive impact of the political network on digital transformation.

Keywords: political network; digital transformation; non-market factors; coopetition; public–private alliances (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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