Digital Transformation and Corporate Performance: The Moderating Role of Corporate Culture

Authors

  • Qing Liu
  • Hao Wan
  • Hongfang Yu

DOI:

https://doi.org/10.54097/ajmss.v3i1.9564

Keywords:

Digital Transformation, Corporate Performance, Corporate Culture, Moderating Effect, Chinese Listed Companies

Abstract

This study explores how Digital transformation affects corporate performance and the moderating role of corporate culture in this process. By analyzing the data of Chinese listed companies, we find that Digital transformation has a positive impact on corporate performance, and corporate culture can further enhance this impact. Our research findings have important implications for both theory and practice. As for theory, our research has deepened the understanding of the impact of Digital transformation and revealed the moderating role of corporate culture. For practice, our research results suggest that enterprises should actively carry out Digital transformation and cultivate an enterprise culture that supports innovation and change. Policymakers can also draw inspiration from our research results, for example, they can provide financial support and technical training, and formulate favorable policies to encourage enterprises to carry out Digital transformation. However, our research also has some limitations, such as not considering the possible mediating role of corporate culture and the limitations of the sample. Future research can try to address these limitations and further broaden our understanding of the relationship between Digital transformation, corporate culture and corporate performance.

Downloads

Download data is not yet available.

References

Denison, D. R. (1990). Corporate culture and organizational effectiveness. “John Wiley & Sons”.

Denison, D. R. (2000). Organizational culture: Can it be a key lever for driving organizational change. “In The Handbook of Organizational Culture”. London: Profile Books.

Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. “MIS Quarterly Executive”, 15(2).

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. “Business & Information Systems Engineering”, 57(5), 339-343.

Sorensen, J. B. (2002). The strength of corporate culture and the reliability of firm performance. “Administrative science quarterly”, 47(1), 70-91.7. Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.

Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G., & Fonstad, N. O. (2017). How Big Old Companies Navigate Digital Transformation. MIS Quarterly Executive.

Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning Technology into Business Transformation. Harvard Business Press.

Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). The new organizing logic of digital innovation: An agenda for information systems research. Information systems research, 21(4), 724-735.

Zhang, M. J. (2017). How does business model innovation influence firm performance? The role of environmental dynamism. The International Journal of Organizational Innovation (Online), 10(2), 35.

Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press, 14.13. Berman, S. J., & Bell, R. (2011). Digital transformation: Creating new business models where digital meets physical. “IBM Institute for Business Value”.

Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2013). Embracing Digital Technology: A New Strategic Imperative. “MIT Sloan Management Review”.

Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. “Information Systems Journal”, 28(6), 1129-1157.

Mithas, S., Ramasubbu, N., & Sambamurthy, V. (2011). How information management capability influences firm performance. “MIS Quarterly”, 35(1), 237-256.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2019). Digital transformation: A multidisciplinary reflection and research agenda. “Journal of Business Research”, 122, 889-901.

Karimi, J., & Walter, Z. (2015). The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. “Journal of Management Information Systems”, 32(1), 39-81.

Ross, J. W., Sebastian, I. M., & Beath, C. (2018). How to Develop a Great Digital Strategy. “MIT Sloan Management Review”.

Nag, R., & Gioia, D. A. (2012). From common to uncommon knowledge: Foundations of firm-specific use of knowledge as a resource. “Academy of Management Journal”, 55(2), 421-457.

Janssen, M., & van der Voort, H. (2016). Adaptive governance: Towards a stable, accountable and responsive government. “Government Information Quarterly”, 33(1), 1-5.

Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in a digital world. “MIS Quarterly”, 41(1).

Downloads

Published

01-06-2023

Issue

Section

Articles

How to Cite

Liu, Q., Wan, H., & Yu , H. (2023). Digital Transformation and Corporate Performance: The Moderating Role of Corporate Culture. Academic Journal of Management and Social Sciences, 3(1), 90-93. https://doi.org/10.54097/ajmss.v3i1.9564