Economic and non-economic impact of digital transformation on enterprise competitiveness: evidence from Chinese-listed companies

This study explores the impact of digital transformation on the competitiveness of 2,979 Chinese-listed companies from 2011 to 2022. Unlike traditional approaches focusing solely on production efficiency and factor costs, this research adopts a broader perspective, encompassing both economic and non-economic dimensions of competitiveness. The findings indicate that non-main board companies achieve greater enhancements in economic competitiveness and social responsibility, whereas main board companies see more improvements in internal governance. State-owned enterprises (SOEs) gain more from digital initiatives compared to non-SOEs. Additionally, the study employs the Herfindahl-Hirschman Index (HHI) to demonstrate that higher market concentration reduces the economic benefits of digital transformation but enhances its non-economic advantages. This research offers new insights into why firms pursue digital transformations and how these efforts impact different types of enterprises, considering factors such as sector, ownership and market concentration, offering a foundation for future studies in this evolving field.