What the study found
The study found that digital transformation is positively associated with market value in Chinese manufacturing firms. The authors also report that human capital, technological innovation, and operational efficiency help explain this relationship.
Why the authors say this matters
The authors conclude that digital transformation can support long-term value creation for managers. They also suggest that strategic orientation and external conditions, such as ESG performance and industry competition, shape how much value digital transformation produces.
What the researchers tested
The researchers used Dynamic Capabilities Theory, which is the idea that firms improve by adapting and reconfiguring their resources and skills. They analyzed 23,440 firm-year observations from Chinese manufacturing firms between 2012 and 2024, using Tobin's Q as the measure of market value.
What worked and what didn't
Digital transformation was found to positively affect market value. The relationship was mediated by human capital, technological innovation, and operational efficiency, and it was stronger when ESG performance was strong and when industry concentration was higher. State-owned and larger firms benefited more, and firms with analytical strategies achieved the highest returns.
What to keep in mind
The abstract does not describe specific limitations. The summary available here is limited to Chinese manufacturing firms and the variables named in the abstract, so the findings should be read within that scope.
Key points
- Digital transformation was positively associated with market value in Chinese manufacturing firms.
- Human capital, technological innovation, and operational efficiency helped mediate the relationship.
- Strong ESG performance amplified the benefits of digital transformation.
- Greater industry concentration strengthened the effect of digital transformation.
- State-owned and larger firms appeared to benefit more than others.
- Firms with analytical strategies showed the highest returns.
Disclosure
- Research title:
- Digital transformation is linked to higher market value in Chinese manufacturers
- Authors:
- Ziyu Jiang, Ling Li, Chao Zhou
- Institutions:
- Beijing Technology and Business University, Universiti Sains Malaysia, University of International Business and Economics
- Publication date:
- 2026-03-07
- OpenAlex record:
- View
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