Digital transformation and enterprise resilience: Enabling or burdening?

• Published in: PloS one Vol. 19; no. 7; p. e0305615
• Main Authors: Li, Cheng, Wang, Yewen
• Format: Journal Article
• Language: English
• Published: United States Public Library of Science 19.07.2024; Public Library of Science (PLoS)
• Subjects: Business models; Collaboration; Corporate governance; Cost analysis; Costs; Digital technology; Digital transformation; Empowerment; Environmental factors; Global economy; Heterogeneity; Humans; Hypotheses; Impact analysis; Industry; Innovations; Intellectual property; Life cycle analysis; Property rights; Resilience; Stockholders; Value creation; China
• ISSN: 1932-6203; 1932-6203
• DOI: 10.1371/journal.pone.0305615

Based on data from A-share listed companies from 2007 to 2021, this study constructs an enterprise resilience index using the entropy-weighted TOPSIS method. On this basis, the impact of digital transformation on enterprise resilience is examined through empowerment theory. The empirical results indicate that digital transformation significantly enhances enterprise resilience, a conclusion that remains valid after a series of robustness tests. Mechanism analysis reveals that digital transformation enhances enterprise resilience by reducing agency costs, increasing information transparency, and alleviating financing constraints. Heterogeneity analysis shows that micro-characteristics of enterprises, such as the stage of the life cycle and factor intensity, as well as macro-environmental factors like regional intellectual property rights protection and industry competition level, have differential impacts on the resilience-enhancing effects of digital transformation. Further analysis suggests that the level of corporate governance influences the positive impact of digital transformation on enterprise resilience.