Harnessing innovation and data: how do digital M&As fuel new quality productive forces

Purpose New quality productive forces (NQPF) are critical for high-quality economic development. As digital mergers and acquisitions (M&As) gain prominence in corporate digital transformation, understanding their impact on NQPF is essential. This study explores whether digital M&As enhance NQPF in firms and identifies key mechanisms that drive this effect. Design/methodology/approach This study investigates the impact of corporate digital M&As on NQPF using a multi-period difference-in-difference (DID) methodology. Analyzing a sample of Chinese listed firms from 2011 to 2021, the study explores how digital M&As contribute to NQPF, identifying firm innovation and data assets as key mechanisms. It also examines how external factors, such as industrial structure, urban human capital and economic policy uncertainty, moderate the effect of digital M&As on NQPF. Findings The study reveals three key findings: (1) Digital M&As significantly enhance corporate NQPF; (2) innovation and data assets serve as key mechanisms through which digital M&As drive NQPF and (3) external factors, including industrial structure, urban human capital and economic policy uncertainty, amplify the positive effects of digital M&As on NQPF. Practical implications Firms should leverage digital M&As as a strategic tool for improving NQPF, focusing on innovation and data assets. Policymakers can support this transformation by fostering an environment that enhances the positive impact of digital M&As on economic development. Originality/value This paper introduces a novel NQPF index, offering a comprehensive measurement of the concept. It provides new insights into how digital M&As affect NQPF, filling a gap in the literature on digital transformation and offering actionable recommendations for firms and policymakers.