Has digital transformation enhanced the resilience of manufacturing enterprises?

Yuqing Zhan and Wanhong Li

International Review of Economics & Finance, 2024, vol. 96, issue PB

Abstract: As environmental uncertainty and market competition intensify, the impact of digital transformation on the survival and development of enterprises has garnered increasing attention. This paper empirically examines the influence of digital transformation on the resilience of manufacturing firms, based on data from Chinese-listed manufacturing companies from 2013 to 2022. Additionally, the study also analyzes the role of dynamic capabilities in this process. It is found that digital transformation significantly enhances the resilience of manufacturing enterprises, primarily through improving their stability and growth. Extended regression results indicate that the breadth of digitalization significantly boosts firm resilience, while the impact of the depth of digitalization on resilience varies with the type of technology implemented. Mechanism tests from the perspective of dynamic capabilities reveal that digital transformation enhances organizational resilience by improving adaptive and absorptive capacities. Further analysis shows that in the face of significant unexpected shocks, enterprises that have implemented digital transformation exhibit significantly greater resilience compared to those that have not. These findings provide theoretical insights and practical references for leveraging digital potential, enhancing organizational resilience, and achieving high-quality economic and social development.

Keywords: Digital transformation; Organizational resilience; Dynamic capability; Exogenous shock (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:96:y:2024:i:pb:s1059056024006804

DOI: 10.1016/j.iref.2024.103688

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