How does digital transformation affect firm performance? including literature review?4 answersDigital transformation has a positive impact on firm performance. It improves financial performance by enhancing digital orientation and utilizing the accounting information system (AIS). Digitalization also reduces external management costs and strengthens internal controls, leading to improved firm performance. User participation plays a crucial role in the relationship between digital transformation and firm performance, with firms needing to establish good relationships with users and absorb their knowledge. Green supply chain management practices positively influence firm performance, with environmental strategy and eco-technological innovation mediating this relationship. Additionally, collaborative capability moderates the relationship between green supply chain management and firm performance. Customer experience, IT innovation, and digital transformation all have a positive impact on firm performance, with customer experience having the strongest effect. Overall, digital transformation contributes to improved firm performance by enhancing digital orientation, utilizing the AIS, promoting user participation, and implementing green supply chain management practices.
How does the adoption of digital transformation technology affect firm performance?4 answersDigital transformation technology has a significant impact on firm performance. It can increase total factor productivity (TFP)and enhance innovation performance, both in terms of product and process innovation. Digital transformation also promotes firms' environmental, social, and governance (ESG) performance by improving internal control and green innovation. Additionally, it positively affects resource orchestration (RO) capabilities, such as structuring and leveraging, which mediate the relationship between technology-sensing capability (TSC) and firm performance. However, the effects of digital transformation on firm performance are influenced by factors such as managerial myopia, industry classification, and the presence of corporate social responsibility (CSR). Overall, adopting digital transformation technology can lead to improved firm performance through increased productivity, innovation, and ESG performance.
Does digital transformation affect the performance of a firm?5 answersDigital transformation has been found to positively affect the performance of firms. Studies have shown that digital transformation enhances firm performance significantly, especially in state-owned enterprises and regions with a higher degree of marketization. The impact of digital transformation on firm performance is mediated by factors such as cloud-based accounting effectiveness, decision-making quality, customer experience, and IT innovation. Furthermore, digital transformation improves firm performance by promoting corporate innovation and lean management through data integration and analysis. The findings suggest that digital transformation is crucial for achieving high-quality development, improving enterprise performance, and contributing to sustainability. Overall, digital transformation has a positive effect on firm performance, making it an important strategy for firms in the digital age.
How does level of digitalization in firms moderate the relationship between digital technology and competitive advantage of firms?5 answersThe level of digitalization in firms moderates the relationship between digital technology and competitive advantage. Research shows that digitalization has a positive effect on firm performance, including process efficiency, social relations, and innovation. The impact of digitalization on firm performance is influenced by factors such as the attributes of the top management team (TMT) and the knowledge base of the industry the firm is located in. TMT attributes like informational diversity play a significant moderating role, enhancing the relationship between external digitalization and firm performance, and weakening the relationship between internal digitalization and firm performance. Additionally, the level of digitalization affects the internationalization speed of enterprises, with the effects being influenced by factors like local embeddedness and institutional fragility. Therefore, the level of digitalization in firms plays a crucial role in determining the impact of digital technology on competitive advantage.
Are there any moderating factors that affect the relationship between artificial intelligence adoption and firm performance?5 answersThere are moderating factors that affect the relationship between artificial intelligence adoption and firm performance. One study found that the positive relationship between AI adoption intensity and revenue growth is stronger among firms that pursue a more exclusive R&D strategy specific to the venture. Another study found that innovation culture (IC) positively moderates the relationship between firm creativity and AI-driven decision making (AIDDM) as well as the relationship between AIDDM and firm performance. Additionally, environmental dynamism (ED) positively mediates the connection between management (AIM) and AIDDM. These findings suggest that factors such as R&D strategy, innovation culture, and environmental dynamism can influence the impact of AI adoption on firm performance.
Under what circumstances does digitalization make firms more innovative?5 answersDigitalization makes firms more innovative under certain circumstances. Firstly, the degree of digitalization of the parent firm can effectively mitigate the negative effect of diverse environmental practices on green innovation performance. Secondly, digitalization improves corporate performance by enhancing corporate innovation. Thirdly, digitalization promotes corporate green innovation by easing corporate financing constraints and enhancing corporate awareness of fulfilling social responsibility. Fourthly, digital transformation significantly improves corporate green innovation by increasing the investment of innovation resources and reducing the cost of debt. Finally, digital firms that iterate with regular rhythms become more innovative in uncertain institutional environments. Therefore, digitalization can enhance innovation in firms by facilitating information processing, improving performance, promoting green innovation, and enabling adaptation to uncertain institutional environments.