The impact of digital transformation on the efficiency of corporate resource allocation: Internal mechanisms and external environment

Li Jiang, Bin Li and Min Zhang

Technological Forecasting and Social Change, 2025, vol. 215, issue C

Abstract: Amid unprecedented changes, firms face significant challenges, with digital transformation emerging as a key driver of strategic upgrading and sustainability. Based on organizational change theory and a corporate perspective, this paper empirically explores how digital transformation impacts resource allocation efficiency, using data from China's A-share listed companies between 2007 and 2022. The findings indicate that digital transformation significantly enhances resource allocation efficiency, though its impact varies. Mature firms, those with higher industry competitiveness, and firms in eastern China benefit more. Mechanism tests reveal that digital transformation improves resource allocation efficiency through technological innovation, process optimization, and strengthened internal control. Additionally, external factors such as microenvironmental and macroenvironmental uncertainty strengthen this effect. This study provides micro-level evidence regarding the effect of digital transformation on resource allocation efficiency and offers theoretical insights for governments and businesses to allocate resources more effectively in the digital era.

Keywords: Digital transformation; Resource allocation efficiency; Technological innovation; Process optimization; Internal control; Environmental uncertainty (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:215:y:2025:i:c:s0040162525001386

DOI: 10.1016/j.techfore.2025.124107

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