The impact of digital transformation on new quality productivity: a moderating analysis based on the socio-technical system theory
Lu Yang, Yanming Zhang, Baofeng Huo, Min Tian
Abstract
Purpose With the rapid advancements of digital technologies, firms are increasingly investing various resources in implementing digital transformation (DT) strategies in order to achieve performance improvements. This study aims to investigate the impact of DT on new quality productivity and explore the moderating role of social system factors, i.e. corporate governance, managerial myopia and employee compensation, based on the socio-technical system theory. It seeks to reveal the critical role of a firm’s social system in shaping the effectiveness of DT within the technical system to promote new quality productivity. Design/methodology/approach We collected panel data from Chinese-listed firms and used econometric models to test the proposed hypotheses. Findings The results show that DT is positively related to new quality productivity. Corporate governance exhibits no moderating influence. Managerial myopia weakens the positive impact, while employee compensation strengthens the positive impact of DT on new quality productivity. Besides, we also conducted several robustness checks. Originality/value This study enriches the empirical literature on new quality productivity and contributes to understanding the performance implications of DT at the firm level by revealing the positive impact of DT on new quality productivity. Furthermore, this research provides a new perspective for understanding the complex relationship between DT and new quality productivity based on the socio-technical system theory by revealing the critical role of a firm’s social system in shaping DT’s effectiveness in promoting new quality productivity.