The inverted U-shaped association between digital economy and corporate total factor productivity: A knowledge-based perspective

This study aims to explore the association between the digital economy (DE) and corporate total factor productivity (TFP), as well as to analyzing the potential moderating influence of industry environment. The sample comprises Chinese A-share listed manufacturing enterprises, and the analysis utilizes the knowledge-based view of firms. The results reveal an inverted U-shaped association between the digital economy and corporate total factor productivity, with the industry environment playing a moderating role in this association. Specifically, the inverted U-shaped association is flatter in industries with higher levels of munificence and dynamism, while it is steeper in the higher complexity industries. These findings underscore the impact of the digital economy on firm productivity and provide guidance on how to effectively utilize the digital economy to improve productivity and competitiveness under different industry environments.