The impact of digital transformation on innovation performance - The mediating role of innovation factors

How digital transformation enhances corporate innovation performance: The mediating roles of big data capabilities and organizational agility

Digital transformation has emerged as a key driver of high-quality enterprise development and an essential tool in forging an innovation-driven paradigm.Existing studies fail to delve into the specific mechanisms of their impact on firms' innovation performance, and views on their impact are divergent. Some studies suggest that digital transformation can enhance innovation performance, while others point out that it may have negative impacts, and cannot clearly answer how big data capabilities and organisational agility play a role in the digital transformation process. Therefore, based on dynamic capability theory and systems engineering theory, this study adopts the logical framework of "strategy-behaviour-performance" to systematically explore the process of digital transformation that enhances firms' innovation performance through the enhancement of big data capability and organisational agility. By empirically analysing the survey data of 476 manufacturing enterprises in China, the study reveals the chain-mediated effects of big data capability and organisational agility, and confirms the key roles of both in the transformation process. The findings suggest that digital transformation significantly improves firms' innovation performance, and that the dual mediating effects of big data capability and organisational agility are important links in its influencing mechanism. These findings not only provide empirical support for the theoretical model of digital transformation, but also provide practical guidance for enterprises to formulate strategies and optimise resource allocation in the digital era. We suggest that enterprises should strengthen the cultivation of big data capabilities and organisational agility while promoting digital transformation to better adapt to and lead market changes.

How does digital transformation affect the profitability of rural commercial banks?

Under the impact of the business sinking of large commercial banks and the cross-border competition of fintech companies, digital transformation has become a strategic priority for rural commercial banks. However, can digital transformation improve the profitability of rural commercial banks (PORCB)? This aspect has not been thoroughly examined in academic literature. This study utilizes unbalanced panel data from 54 Chinese rural commercial banks spanning from 2010 to 2021. The Peking University Commercial Bank Digital Transformation Index is employed to gauge the extent of digital transformation, while ordinary least squares estimation is used to examine its effect on the profitability of rural commercial banks and elucidate its underlying mechanisms. The findings show that: (1) Digital transformation can significantly improve the PORCB. (2) Digital transformation improves the PORCB by enhancing asset quality, operating efficiency and risk-taking. (3) The profitability-enhancing effect of digital transformation is more pronounced among rural commercial business banks with larger assets and lower equity concentration, as well as among state-owned rural commercial banks. This paper's findings represent a novel investigation into the correlation between digital transformation and the profitability of rural commercial banks. They offer a theoretical foundation and empirical evidence for future studies examining the economic implications of bank digital transformation, and offer valuable insights for enhancing the digitalisation of rural banks.

Impact of digital empowerment on labor employment in manufacturing enterprises: Evidence from China

Many studies have examined the influence of digital technologies, such as robots and artificial intelligence, on enterprise labor, but few have investigated the underlying mechanisms and impact paths of digital empowerment on labor employment. Therefore, this study uses data on manufacturing enterprises listed on China's Shanghai and Shenzhen A-share markets from 2011 to 2020, and applies a panel fixed effect model to test the relationship between digital empowerment and labor employment, and the mechanisms underlying this relationship. We find that digital empowerment increases labor employment. However, the effects are heterogeneous: firms with better corporate governance, more competitive industry, and less favorable regional business environments are more motivated to optimize the structure of their labor resources. Through robustness test and mediation effect model test, we find that digital empowerment can improve enterprise human capital by increasing economies scale and managerial efficiency, especially the employment of R&D and innovation personnel and management personnel; it can also affect the amount of human capital by improving total factor productivity.

Purchase intentions for cultural heritage products in E-commerce live streaming: An ABC attitude theory analysis

With the increasing popularity of e-commerce live streaming, understanding purchase intentions for cultural heritage products in this context is crucial, prompting the analysis based on the ABC attitude theory. This study investigates how creative products of intangible cultural heritage influence consumers' purchase intentions within the framework of e-commerce live streaming. It further explores the mediating influence of consumer satisfaction in this association, utilizing the ABC attitude theory. The research design encompasses dimensions related to creative products of intangible cultural heritage, e-customer satisfaction, and purchase intention. Confirmatory factor analysis and Structural Equation Modeling (SEM) are utilized to examine the research hypotheses. The study reveals that perceived product quality, perceived interactivity, and professionalism among streamer factors, as well as perceived entertainment among scene factors, positively influence consumer satisfaction. Additionally, intangible cultural heritage has a positive effect on consumers' purchase intention toward creative products of intangible cultural heritage. Furthermore, consumer satisfaction serves as a mediating factor in the relationship between perceived product quality, perceived professionalism and interactivity, perceived entertainment, and consumers' purchase intention. This study is limited to creative products of intangible cultural heritage and involved a relatively small sample size. Moreover, certain perceptual dimensions of e-commerce live streaming were excluded from the analysis. Originality/value - This study contributes to the existing literature on the ABC theory by developing a model that examines consumer satisfaction and purchase intention. The model employed in this study integrates perceptual dimensions pertaining to creative products of intangible cultural heritage within the framework of e-commerce live streaming, utilizing the ABC theory. Additionally, this research contributes to addressing a gap in the existing literature by specifically focusing on the category of creative products of intangible cultural heritage within the broader discourse on dimensions in e-commerce live streaming. Thus, this study presents numerous diverse perspectives that can serve as a basis for further research into the integration of e-commerce live streaming and cultural and creative products associated with intangible cultural heritage.

Sustainable digital transformation path for manufacturing outwards foreign direct investment firms: Gradual or leapfrogging

Digital transformation plays an important role in improving the efficiency of production of enterprises and can provide strong support for green and sustainable development. Compared with domestic enterprises, outward foreign direct investment (OFDI) enterprises have greater access to advanced digital technology. This paper aims to analyze the path selection of green and sustainable production for the digital transformation of manufacturing outward foreign direct investment (OFDI) companies, whether gradual or leapfrogging. However, there is a lack of systemic game mechanisms and numerical simulation methods for heterogeneous enterprises. Based on the analysis of reverse technology spillover intensity of outward foreign direct investment (OFDI) and differences in the absorptive capacity of enterprises, we have proposed the evolutionary game model for different path selection of digital transformation of manufacturing enterprises, due to heterogeneous enterprises under different spillover degrees with numerical analysis methods. The research results show that: (i) Under low reverse technology spillover intensity, all enterprises evolve to a gradual transformation path, and enterprises with weaker absorptive capacity converge faster; (ii) There is a certain threshold for reverse technology spillover. When reverse technology spillover intensity exceeds the threshold, enterprises with stronger absorptive capacity converge to a leapfrog transformation path, but enterprises with weak absorptive capacity converge to a gradual transformation path; (iii) With high reverse technology spillover intensity, all enterprises evolve toward a leapfrog transformation path, and faster convergence happens to enterprises with higher absorptive capacity. The evolutionary game path of digital transformation in manufacturing enterprises is illustrated in Fig. 1.

Digital transformation and corporate financialization in emerging markets: Evidence from China

Corporate financialization poses serious challenges to the development of the real economy. In the context of promoting the deep integration of the digital economy and the real economy, it is crucial to explore whether digital transformation can inhibit corporate financialization. Using data from Chinese listed companies from 2009 to 2021, we construct a fixed effects model and find that digital transformation significantly reduces the level of corporate financialization, a conclusion that still holds after a series of robustness tests such as propensity score matching and adding control variables. Channel analysis shows that that digital transformation inhibits corporate financialization by enhancing the information mobility and operational capability of corporations. In addition, this effect is more pronounced at higher levels of industry competition as well as marketization. Finally, we also find structural differences in the impact of digital transformation on corporate financialization. Our study explores the determinants of corporate financialization in terms of a firm's mode of operation and type of strategy, and the findings provide a theoretical basis for the active development of digital technologies in emerging markets that are undergoing economic transitions, as well as for guarding against the shift of the economy from the real to the virtual.

Differences in Screen Addiction in the Past 15 Years

The use of information and communication technologies (ICTs) has become widespread in recent years, leading to an increase in addiction cases. A total of 118 patients who attended the Behavioral Addictions Unit of Consorci Sanitari de Terrassa (Barcelona, Spain) between October 2005 and December 2021 were included in the study. The sample was divided into three groups according to the time period in which they started treatment: between 2005 and 2010 (before the rise in new technologies, named the pre-ICT period), between 2011 and 2019 (a time of major ICT development, named the ICT period) and between 2020 and 2021 (with massive use of the internet due to effects of the pandemic, named the COVID-19 period). We found an increase in the incidence of screen addiction cases related to the development of technology throughout the study years, and this increase was accentuated during the COVID-19 period. This increase was not equal for all types of content consumed via the internet, with patients with video game addiction increasing to a greater extent than patients with internet/social network addiction. In addition, patients with video game addiction were younger and had started gaming at a younger age than those with internet/social network addiction. These results contribute to a better understanding of the phenomenon of technology addiction and to the design of appropriate treatment protocols and preventive programs.

Dynamics of green economic development in countries joining the belt and road initiative: Is it driven by green investment transformation?

Green investment transformation is the main interval difference of the Belt and Road Initiative, however, its actual effects are still uncertain. Finding out its utility, mechanism and improvement on green economy may accelerate green development. In this paper, Slack Based Measure model is used to obtain original results, Super-Efficiency model is used to sort effective decision-making units for stronger efficient frontier and Minimum Distance to Strong Efficient Frontier model is used to narrow gaps between non-effective ones and real situations. Then Global Malmquist-Lunberger index makes results dynamisation. Samples of 51 countries joining the Belt and Road Initiative from 2008 to 2022 are used in above-mentioned models to portray green economic dynamics. Then utility, mechanism and improvement of green investment transformation on green economy are studied through econometric model. The findings show that (i) Green Belt and Road Initiative makes green economic development more stable. The standard deviation decreases by 96.53% and mean maintains in 1.5. However, disconnection between a 36.36% increase of pure technological change and a 24.83% decline of its scale effect inhibits technical advance. (ii) Share of countries obtaining green scale revenues reaches 56.86%, which realizes a 52.64% increase. Furthermore, gaps between countries with positive status and those with negative status narrow 68.42%. Positive group accounts for 50% in developed countries and 46.15% in developing countries. (iii) Performance of Green Belt and Road Initiative is better than the Belt and Road Initiative. A one standard deviation increase in green investment transformation increases green economic development by 0.2705 (0.2105), which is a 18.57% (14.45%) increase relative to average green economic development of 1.457. Former's strengths also reflect in different quantiles, lagging effect and heterogeneity analysis. (iv) Green investment transformation of Green Belt and Road Initiative broadens more reliable mechanism (Promote Innovation - Strict Regulation - Ensure Commercialization) based on original one (Improve Efficiency - Decrease Costs - Increase Revenues) of the Belt and Road Initiative. (v) For the green investment transformation with government subsidies, property rights protection, investment environment stability and exchange cooperation, magnitudes of its effects on green economic development have significant increases by 25.03%, 31.77%, 8.01% and 10.12% respectively. The findings not only help understand green economic status, but also support some policy insights for achieving green economy by discovering utility, mechanism and improvement of green investment transformation.

Inherent mechanism of digital technology application empowered corporate green innovation: Based on resource allocation perspective

Confronted with the treacherous digital wave and the aggressive environmental challenges, digital technology and green innovation are becoming critical tools for corporations to secure a sustainable advantage. The significance of identifying the role of digital technology application on corporate green innovation has been widely debated in the extant literature. Nevertheless, few researchers have investigated the inherent mechanism between them from the resource allocation perspective. From this research gap, we construct a theoretical model of the inherent mechanism by which digital technology application affects corporate green innovation, validate it using listed corporations in China from 2011 to 2020, and further investigate the differences in their inherent mechanism triggered by property rights and industry competition. We found that digital technology application is effective in promoting corporate green innovation. Stronger green innovation effect of digital technology application in state-owned corporations and those in highly competitive industries. The inherent mechanism between them manifest in optimizing the allocation of conventional labor, expanding the scale of non-conventional labor, and enhancing investment in R&D and digital infrastructure capital. We further explored that the impact of applying digital technology to optimize conventional labor allocation, expand non-conventional labor scale, and enhance investment in R&D and digital infrastructure capital is stronger for corporations in highly competitive industries than those in lowly competitive industries. The difference is that the role of the digital technology application in boosting capital investment in R&D does not differ across corporations with different property rights. Findings provide theoretical and empirical evidence on effectively developing the digital technology application's green innovative effects.

Applied artificial intelligence: Acceptance-intention-purchase and satisfaction on smartwatch usage in a Ghanaian context

Technology and its continuous advancement facilitate human beings to get rid of their criticality and limitation. Applied artificial intelligence (AAI) is one of the latest forms that delimited the limitation of human beings. Smartwatch acts as an applied artificial intelligence to assist various patients to check medical care without going to hospital and physicians. This (three) multiple-study research focused on the intention to use, purchase, and their satisfaction and spread positive word of mouth among others in the Ghanaian. To investigate these issues two renowned theories were underpinned- TAM theory and the Stimulus-Organism-Response (S-O-R). Total 550, 320, and 170 respondents were interviewed with Google forms due to COVID-19 using social media. AI-enabled smartwatch considering Perceived Ease of Use (PEOU), Perceived Usefulness (PU), Perceived Credibility (PC), Perceived Self-Efficacy (PSE), and Perceived Financial Cost (PFC) were significant on intention to adoption and adoption intention on actual purchase. The final study showed device quality, its service level, their usage experience, perceived value, and the extent to which the satisfied customers made positive word of mouth to their friends and family, colleagues and followers. This research is significant in understanding the usage of AI-enabled smartwatches as a device doctor or electronic doctor (e-doctor).

The effects of digital technology application and supply chain management on corporate circular economy: A dynamic capability view

Developing circular economy capability has emerged as an effective response to environmental pressures on firms. The proliferation of digital technology has created uncertainty in developing corporate circular economy capability. Although research has begun to focus on the impact of digital technology application on corporate circular economy capability, empirical evidence remains absent. Simultaneously, few studies have concerned corporate circular economy capability obtained from supply chain management. The answer to the correlation between digital technology application, supply chain management, and circular economy capability is unavailable in current research. Based on a dynamic capability view, we investigate how digital technology application affects corporate circular economy capability through supply chain management regarding supply chain risk management, collaboration, and integration. This underlying mechanism was verified with 486 Chinese-listed industrial firms and the mediating model. The findings demonstrate that digital technology application and supply chain management significantly affect corporate circular economy capability. The mediating channel whereby the digital technology application provides circular economy capability can facilitate the positive impact of supply chain risk management and collaboration while undermining the adverse effects of supply chain integration. These mediating channels differentiate in heterogeneous growth firms and are more pronounced in low-growth groups. It presents an opportunity to use digital technology to reinforce the positive impact of supply chain risk management and collaboration and mitigate the negative effect of supply chain integration on circular economy capability.

The impact of corporate digital strategic orientation on innovation output

Given the development of the digital economy, the shift to digitalization is an inevitable direction for corporate strategic planning. This empirical study investigates the impact of corporate digital strategic orientation on innovation output. It also examines the moderating effects of executive equity and compensation incentives on the relationship between corporate digital strategic orientation and innovation output. We selected a sample of Chinese listed companies and adopted the Heckman two-stage and two-stage least square (2 S LS) methods to control for potential endogenous problems. Our findings indicate that corporate digital strategic orientation significantly enhances innovation output. Additionally, we found that executive compensation and equity incentives positively moderate the impact of corporate digital strategic orientation on innovation output, with equity incentives having a greater moderating effect than compensation incentives. Further analysis shows that the impact of corporate digital strategic orientation on innovation output is greater in non-manufacturing industries and non-state-owned enterprises. Our study provides policy insights on how companies can enhance their innovation capability in the digital economy.