Impact of Firm Ownership on Manufacturing Performance through Digital Transformation
DOI: https://doi.org/10.65967/cpbo.v2i1.54
digital transformation, manufacturing; productivity, enterprise ownership
Abstract
As information technology continues to advance rapidly, digital transformation has become a pivotal trend for enhancing productivity and competitiveness in manufacturing enterprises worldwide. This study investigates the influence of digital transformation on production efficiency among Chinese listed manufacturing firms from 2011 to 2021. To analyze this relationship, we employ a dynamic common factor model combined with a panel data quantile regression approach, allowing for the assessment of efficiency effects across different performance levels. The results reveal a path-dependent pattern: at lower levels of production efficiency, the benefits of digital transformation are modest, whereas once a critical efficiency threshold is exceeded, its positive impact on productivity becomes substantially more pronounced. Additionally, the study demonstrates that the effects of digital transformation vary across ownership types. High-tech state-owned and private firms gain significant advantages in cost reduction, innovation, alleviation of financial constraints, and improvements in both decision-making processes and human capital. In contrast, non-high-tech state-owned firms show limited gains in cost efficiency and decision-making, while non-high-tech private enterprises experience minimal productivity benefits from human capital development. These findings underscore the importance of aligning digital transformation initiatives with firm ownership characteristics. By highlighting the heterogeneous outcomes of digital transformation, this research offers actionable insights for managers and policymakers seeking to maximize efficiency gains and strategic value through technology adoption in the manufacturing sector.
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