A Study on the Impact of Different Organizational Levels on Digital Transformation in Enterprises

Dexin Huang, Qing Gao (), Chengqi Peng, Kexuan Yang and Renhuai Liu
Additional contact information
Dexin Huang: Department of Business Administration, Jinan University, Guangzhou 510632, China
Qing Gao: School of Management, Jinan University, Guangzhou 510632, China
Chengqi Peng: School of Management, Jinan University, Guangzhou 510632, China
Kexuan Yang: School of Management, Jinan University, Guangzhou 510632, China
Renhuai Liu: MOE Key Laboratory of Disaster Forecast and Control in Engineering, School of Mechanics and Construction Engineering, Jinan University, Guangzhou 510632, China

Sustainability, 2023, vol. 15, issue 23, 1-18

Abstract: Based on data from A-share listed companies in Shanghai and Shenzhen between 2007 and 2020, this study categorizes enterprises into decision-making and execution levels. We found that a high degree of digital transformation at the decision-making level enhances enterprise performance, while excessive transformation at the execution level diminishes performance. We tested the influence of the digital transformation degree of the decision-making layer and the executive layer on enterprise performance by constructing an econometric model. The mechanism behind the results was tested, and the influence mechanism between digital transformation and enterprise performance was explored from the perspective of TOE theory. Mechanism analysis showed that digital transformation impacts performance by increasing R&D investment, driving revenue growth, and enabling the efficient use of government subsidies. Managing decision-level expenses also strengthens performance and supports digital transformation. This research offers fresh insights into how technology drives digital transformation in a changing external environment, guiding management at different hierarchical levels in enterprises.

Keywords: digital transformation; enterprise performance; hierarchical structure; transmission mechanism (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:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/23/16212/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/23/16212/ (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:23:p:16212-:d:1285678

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 ().