Can the digital transformation of manufacturing enterprises promote enterprise innovation?

Abstract

Purpose

The purpose of this paper is to investigate the relations between the digital transformation of manufacturing enterprises and enterprise innovation to provide inspiration for promoting the digitization and upgrading of China's manufacturing industry and facilitate enterprises' innovative development.

Design/methodology/approach

Based on a panel data of 584 listed manufacturing companies in China from 2016 to 2020, and using a fixed effects approach, this paper empirically examines the impact of digital transformation on corporate innovation in manufacturing enterprises, as well as examining the influential mechanisms and heterogeneity.

Findings

The research shows that the digital transformation of manufacturing enterprises has effectively improved the innovation capacity of enterprises and verifies different situations through heterogeneity. At the same time, the research clarifies the mediating effect of the innovation investment mechanism, cost control mechanism, and profit guarantee mechanism on the relations between the digital transformation of manufacturing enterprises and the innovation capacity of enterprises.

Originality/value

Based on Chinese manufacturing enterprise samples, this paper empirically tests the influential mechanism of digital transformation on the innovation capability of manufacturing enterprises, therefore clarifying the main mediating effects. This paper could provide inspiration for manufacturing companies to make good use of digital transformation rules according to their own situation and improve their innovation capabilities, thereby enhancing competitiveness in the digital economy era.

Citation

Zhao, X., Sun, X., Zhao, L. and Xing, Y. (2022), "Can the digital transformation of manufacturing enterprises promote enterprise innovation?", Business Process Management Journal, Vol. 28 No. 4, pp. 960-982. https://doi.org/10.1108/BPMJ-01-2022-0018