What the study found
Digital transformation was positively associated with the market value of manufacturing firms in China, measured by Tobin's Q. The study also found 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, and they present the findings as practical guidance for managers. The study suggests that strategic orientation, especially an analytical strategy, is important in capturing the benefits of digital transformation.
What the researchers tested
The researchers used Dynamic Capabilities Theory, which links firm performance to the ability to adapt and build capabilities, to examine how digital transformation relates to market value. They analyzed 23,440 firm-year observations from Chinese manufacturing firms between 2012 and 2024 and measured market value with Tobin's Q.
What worked and what didn't
Digital transformation showed a positive effect on market value. The relationship was mediated by human capital, technological innovation, and operational efficiency, and it was moderated by ESG performance and industry competition; strong ESG ratings amplified the effect, and greater industry concentration strengthened it.
What to keep in mind
The abstract does not describe detailed limitations beyond the study's focus on Chinese manufacturing firms and the 2012 to 2024 sample period. The reported findings are based on the variables and measures named in the abstract, including Tobin's Q and the stated mediators and moderators.
Key points
- Digital transformation was positively associated with market value in Chinese manufacturing firms.
- Human capital, technological innovation, and operational efficiency mediated the relationship.
- Strong ESG ratings and greater industry concentration amplified the effect.
- State-owned and larger firms benefited more than others, according to the abstract.
- Firms with analytical strategies achieved the highest returns from digital transformation.
Disclosure
- Research title:
- Digital transformation raises market value in Chinese manufacturing firms
- Authors:
- Ziyu Jiang, Ling Li, Chao Zhou
- Institutions:
- Beijing Technology and Business University, University of International Business and Economics, Universiti Sains Malaysia
- Publication date:
- 2026-03-07
- OpenAlex record:
- View
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