Impacts of digital transformation on enterprise innovation resilience: A study from China

Abstract

Purpose: This study aims to investigate the impacts of digital transformation on enterprise innovation resilience, with a focus on understanding how digital transformation influences innovation resilience across different stages during the life cycle of an enterprise.

Design/methodology/approach: Data were collected from Chinese A-share listed companies from 2012 to 2022. Industries with unique financial reporting characteristics, special treatment (ST) samples, and samples with missing data are excluded to obtain a final dataset of 18 304 observations. A regression model is employed to examine the dual effect of digital transformation on enterprise innovation resilience.

Findings/results: The findings reveal a significant inverted U-shaped relationship between digital transformation and enterprise innovation resilience. For companies at different lifecycle stages, digital transformation significantly enhances innovation resilience during the growth phase. However, for mature and declining companies, digital transformation still exhibits an inverted U-shaped relationship with innovation resilience, albeit with a relatively lower empowerment effect during the decline phase.

Practical implications: Enterprises are advised to leverage the positive effects of digital transformation on innovation resilience while avoiding the pitfalls of excessive digitisation. Flexibility in adapting digital transformation strategies according to the enterprise lifecycle stage is recommended. Furthermore, enterprises should prioritise the coordinated development of various factors contributing to innovation resilience.

Originality/value: This study extends the examination of innovation resilience from macro-industry to micro-enterprise levels and provides insights into the dynamics of digital transformation effects on innovation resilience across different lifecycle stages. Additionally, it highlights the importance of considering multiple pathways through which digital transformation influences innovation resilience.