Board networks, enterprise digital transformation, and the mediating role of TFP: evidence from China

Drawing on the theoretical framework of social networks, this study investigates how a firm’s position within board networks influences its digital transformation initiatives and considers the mediating role of total factor productivity (TFP). The empirical results indicate a positive correlation between a firm’s degree centrality within corporate board networks and its enterprise digital transformation (EDT), whereas the relationship between structural hole constraints and EDT appears to be inversely proportional. TFP is a partial mediator in the channels through which board networks affect EDT. Furthermore, the negative impact of structural hole constraints on non-state-owned enterprises is significant, whereas degree centrality has a significant positive impact on large enterprises.