The Impact of Digital Technology Innovation on Firm Performance: Based on the Corporate Digital Responsibility Perspective

ABSTRACT In the era of the digital economy, the important issue for enterprises is how to achieve optimal performance by balancing the development of digital technology and undertaking digital responsibility. Based on optimal distinctiveness theory, we explore how enterprises balance the tension between political strategy and competitive strategy from the perspective of corporate digital responsibility to achieve optimal firm performance. Observing data such as annual reports, patent application information, and operating conditions of Chinese A‐share listed companies from 2009 to 2021 reveals the impact of corporate digital responsibility, substantive and symbolic digital technology on firm performance. The research results show that substantive digital technology innovation is superior to symbolic digital technology innovation in promoting firm performance. Mechanism analysis shows that symbolic digital technology innovation satisfies the firm's political strategy and positively impacts firm performance through management empowerment. In contrast, substantive digital technology innovation satisfies the firm's competitive strategy and improves performance by empowering the workforce. Further analysis find that corporate digital responsibility positively moderates the impact of substantive digital technology innovation on corporate performance and negatively moderates the relationship between symbolic digital technology innovation and corporate performance. This study incorporates digital technology innovation and digital responsibility into a unified research framework, which provides a new interpretative path for improving firm performance and contributes important practical references for firms to achieve a “win‐win” situation that improves competitiveness and social value.