Research

Open AccessArticle

Digital Transformation, Firm Boundaries, and Market Power: Evidence from China’s Listed Companies

by

Yang Xu

and

Chengming Li

Systems 2023, 11(9), 479; https://doi.org/10.3390/systems11090479 - 19 Sep 2023

Viewed by 344

Abstract

Digital transformation is seen as an “elixir” for companies to improve their economic performance and expand their market power in the digital economy. Therefore, how does digital transformation affect enterprises’ market power? This paper used machine learning to construct a digital transformation index [...] Read more.

Digital transformation is seen as an “elixir” for companies to improve their economic performance and expand their market power in the digital economy. Therefore, how does digital transformation affect enterprises’ market power? This paper used machine learning to construct a digital transformation index and used panel data of listed enterprises from 2008 to 2020 to study the impact of digital transformation on market power and its mechanism of action. The findings showed that digital transformation significantly increases market power, and this conclusion still holds after considering potential endogeneity issues and conducting robustness tests. The results of mechanism analysis revealed that digital transformation facilitates endogenous scale expansion and promotes merger and acquisition (M&A), which reshapes firm boundaries and, thus, enhances market power. This paper revealed new changes in the micro-organization of enterprises in the context of digital transformation and provided micro-evidence for the industrial organization effect of digital transformation. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

Does Innovation Create Employment Indirectly through the Improvement Generated in the Company’s Economic and Financial Results?

by

Antonio Fernández-Portillo

,

Nuria Ramos-Vecino

,

María Calzado-Barbero

and

Rafael Robina-Ramírez

Systems 2023, 11(8), 381; https://doi.org/10.3390/systems11080381 - 26 Jul 2023

Viewed by 474

Abstract

Innovation has traditionally been related to unemployment because people are replaced by machines. By analyzing the different approaches in the literature, we focused on the relationship between innovation and employment with the aim of exploring whether the most innovative companies create more employment, [...] Read more.

Innovation has traditionally been related to unemployment because people are replaced by machines. By analyzing the different approaches in the literature, we focused on the relationship between innovation and employment with the aim of exploring whether the most innovative companies create more employment, or hope to create it, taking into account the company performance. For this purpose, we performed multivariate analysis, using the partials least squares (PLS) technique, to study the direct and indirect relationship between business innovation and employment through the economic and financial performance of the company, focusing on Spanish companies in the year 2022. The results obtained show that innovation has a positive effect on employment and on the performance of the company, and thus on the creation of employment. In conclusion, the administration should encourage business innovation to improve employment rates and company performance. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

How Does Digital Transformation Increase Corporate Sustainability? The Moderating Role of Top Management Teams

by

Yaxin Zhang

and

Shanyue Jin

Systems 2023, 11(7), 355; https://doi.org/10.3390/systems11070355 - 11 Jul 2023

Viewed by 1164

Abstract

Digitization is a megatrend that shapes the economy and society, driving major transformations. Enterprises, as the most important microeconomic entities, are critical carriers for society in conducting digital transformation and practicing sustainable development to achieve socioeconomic and environmental sustainability. Exploring the relationship and [...] Read more.

Digitization is a megatrend that shapes the economy and society, driving major transformations. Enterprises, as the most important microeconomic entities, are critical carriers for society in conducting digital transformation and practicing sustainable development to achieve socioeconomic and environmental sustainability. Exploring the relationship and mechanisms between digital transformation and sustainable corporate development is crucial. This study investigates the influence of digital transformation on sustainable corporate development as well as its moderating mechanisms. A two-way fixed effects model is used on a research sample of Chinese A-share listed companies in Shanghai and Shenzhen from 2010 to 2020. Three methods are used for robustness testing to alleviate endogeneity issues. The empirical results show that digital transformation can significantly enhance sustainable corporate development, whereas empowered management and highly educated employees are essential complementary human resources that effectively strengthen the contribution of digitalization to sustainability. Additionally, internal controls are internal drivers that have a positive moderating effect on the digital transformation to improve corporate sustainability. This study reveals that digital transformation is an important tool for promoting corporate sustainability, broadening the literature in related fields, and providing insights for corporate management and government policymakers to advance corporate sustainability. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

Digital Transformation and Corporate Sustainability: The Moderating Effect of Ambidextrous Innovation

by

Ying Ying

and

Shanyue Jin

Systems 2023, 11(7), 344; https://doi.org/10.3390/systems11070344 - 05 Jul 2023

Viewed by 881

Abstract

Digital transformation (DT) has become the new normal. Research has focused on the effect of the overall level of DT in enterprises. However, the effects of DT across different dimensions remain unclear. This study divided DT into technology- (TDT) and market-based digital transformation [...] Read more.

Digital transformation (DT) has become the new normal. Research has focused on the effect of the overall level of DT in enterprises. However, the effects of DT across different dimensions remain unclear. This study divided DT into technology- (TDT) and market-based digital transformation (MDT). It examined the effects on corporate sustainability and how ambidextrous innovation affects the relationship between both types and corporate sustainability. This study used the two-way fixed-effects model and the two-stage least squares method to study A-share listed companies in China from 2013 to 2021. The results showed that both TDT and MDT had positive effects on corporate sustainability. The higher the levels of exploratory and exploitative innovation in enterprises, the stronger the contribution of both types of DT to corporate sustainability. The findings validate the research on DT in line with the resource-based view, enrich the literature on and expand the boundary conditions of DT applications across various dimensions, and offer useful insights for practitioners. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

Service Mechanism for the Cloud–Edge Collaboration System Considering Quality of Experience in the Digital Economy Era: An Evolutionary Game Approach

by

,

,

and

Systems 2023, 11(7), 331; https://doi.org/10.3390/systems11070331 - 27 Jun 2023

Viewed by 475

Abstract

In the digital economy era, cloud–edge collaboration technology provides the necessary technical support for the digital transformation of enterprises, which can improve the quality of services (QoS), and it attracts extensive attention from scholars and entrepreneurs from all fields. Under the bounded-rationality hypothesis, [...] Read more.

In the digital economy era, cloud–edge collaboration technology provides the necessary technical support for the digital transformation of enterprises, which can improve the quality of services (QoS), and it attracts extensive attention from scholars and entrepreneurs from all fields. Under the bounded-rationality hypothesis, this paper investigates the service mechanism for the cloud–edge collaboration system considering the quality of experience (QoE) and presents a dynamic evolutionary game model between cloud service providers and edge operators by applying the evolutionary game theory. Then, this paper analyzes the equilibrium and stability conditions for the decision-making of both parties involved to guarantee the QoE reaches the ideal state. In addition, we investigate the factors that influence the stable cooperation between the two evolutionary stable strategies and validate the theoretical analytical results with numerical simulations. The research results show that the final evolution of the cloud–edge collaboration system depends on the benefits and costs of the game matrix between the two parties and the initial state values of the system. Under a specific condition, the cloud–edge collaboration system can eventually be driven to be an ideal state by reducing the collaboration cost and improving the collaboration benefit. The more both parties focus on the QoE, the more conducive it will be for the formation of a cloud–edge collaboration, thus effectively promoting long-term stability and better serving enterprises’ digital transformation. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

How Does the Digital Transformation of Banks Improve Efficiency and Environmental, Social, and Governance Performance?

by

Yongjie Zhu

and

Shanyue Jin

Systems 2023, 11(7), 328; https://doi.org/10.3390/systems11070328 - 26 Jun 2023

Viewed by 1288

Abstract

In the era of the digital economy, traditional industries have begun to realize digital transformations. For commercial banks, digital transformation is a trend and a requirement and is the only way to achieve sustainable development. At the same time, at the helm of [...] Read more.

In the era of the digital economy, traditional industries have begun to realize digital transformations. For commercial banks, digital transformation is a trend and a requirement and is the only way to achieve sustainable development. At the same time, at the helm of the enterprise, executives play an essential role in the development of commercial banks. This study explored the relationship between digital bank transformation and bank efficiency, environment, society, and corporate governance (ESG) through empirical analysis, and how executives’ innovation awareness and executive technical background affect the relationships between digital bank transformation, bank efficiency, and ESG. This study used the regression method of fixed effects to conduct empirical research on the data of China’s A-share listed banks from 2011 to 2021. The research results show that the digital transformation of banks has improved efficiency and promoted the ESG performance of commercial banks. At the same time, executives’ innovation consciousness and technical background have played a positive regulatory role in banks’ digital transformation to promote bank efficiency and ESG. The main research object of this study was Chinese commercial banks. The bank’s digital transformation results were examined and the research was expanded to digital transformation and ESG. At the same time, this study has particular significance for investors who have a financial interest in banks. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

Leading Role of Big Data Analytic Capability in Innovation Performance: Role of Organizational Readiness and Digital Orientation

by

,

,

,

and

Abdelmohsen A. Nassani

Systems 2023, 11(6), 284; https://doi.org/10.3390/systems11060284 - 01 Jun 2023

Cited by 1 | Viewed by 839

Abstract

The advancement of technology offers various opportunities for business organizations to achieve sustainable growth. Through emerging technologies, business organizations are able to collect and analyze essential information vital for the acceleration of innovation. Therefore, this study investigated how big data contribute to the [...] Read more.

The advancement of technology offers various opportunities for business organizations to achieve sustainable growth. Through emerging technologies, business organizations are able to collect and analyze essential information vital for the acceleration of innovation. Therefore, this study investigated how big data contribute to the innovation activities of manufacturing entrepreneurs in terms of big data analytic capability (BDAC). The aim of this study was to relate BDAC to organizational readiness and innovation performance (IP). Moreover, we examined the mediating role of organizational readiness between BDAC and IP. We also examined the strengthening role of digital orientation. To collect the study data, we approached 494 frontline managers of the manufacturing sector of Saudi Arabia. The collected data were analyzed using statistical techniques such as descriptive, correlation, and hierarchical regression techniques. We found that BDAC plays a vital role in developing organizational readiness and IP. The findings also proved that organizational readiness has a significant effect on IP. The results revealed that organizational readiness mediates between BDAC and IP. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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Open AccessArticle

Investigating the Impact of Industry 4.0 Technology through a TOE-Based Innovation Model

by

Yongping Zhong

and

Hee Cheol Moon

Systems 2023, 11(6), 277; https://doi.org/10.3390/systems11060277 - 31 May 2023

Viewed by 1142

Abstract

Technological change has drastically shaped developments in the manufacturing and service industries. Integrating Industry 4.0 technologies in business practice is an emerging trend for future-oriented enterprises. By linking the TOE (technology-organization-environment) framework with product innovation, process innovation, and company performance, this research proposes [...] Read more.

Technological change has drastically shaped developments in the manufacturing and service industries. Integrating Industry 4.0 technologies in business practice is an emerging trend for future-oriented enterprises. By linking the TOE (technology-organization-environment) framework with product innovation, process innovation, and company performance, this research proposes a TOE-based innovation model to investigate Industry 4.0. The test results identified that Industry 4.0 technology adoption can be determined by compatibility, top management support, and competitive pressures, unexpectedly, not cost or employee capability; technology adoption can only indirectly influence company performance through mediation effects of product and process innovation. Results also revealed that industry type and global trade could play moderation roles in the technology adoption process: compared to the manufacturing industry, employee capability seems to be more influential on technology adoption in the service industry; global trade activities cannot significantly impact the technology adoption process, but trade companies are more likely to achieve more process innovation after such adoption. This study can enrich the theoretical bases of Industry 4.0 and confer a better understanding of the ongoing technological revolution in developing countries, which may offer some new insights for practitioners and academics. Full article

(This article belongs to the Special Issue Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems)

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