The Impact of Digital Transformation on Enterprise Innovation

Abstract

By adding cutting-edge technology and digital tools to enhance the effectiveness of data analysis and application, digital transformation generates a more fluid innovation opportunity and space for businesses to expedite the development of new products and services. In this process, limiting financing constraints and internal controls play a key role. Financing constraints can enable enterprises to obtain sufficient support, while strengthening internal controls can effectively manage investments in digital transformation, ensure efficient use of resources, reduce risks, and enhance investor confidence. Therefore, for companies to innovate in the digital revolution, scientific financial planning and internal control mechanisms are essential. Synthesizing the paper's results, financing constraints and internal control, which combined create a situation that is conducive to innovation and offer a strong support system for businesses to achieve sustainable development, have an immediate effect on how digital transformation affects organizational innovation.