The Impact of Digital Transformation on the New Productivity of Enterprises an Empirical Analysis of Industry Heterogeneity Differences

Abstract

As China navigates a crucial stage of economic transition and industrial enhancement, its conventional growth paradigm faces increasing challenges in sustaining high-quality development. In this context, the concept of “new quality productivity” has gained significant attention. Digital transformation has become a pivotal driving force in supporting this evolution. However, empirical research on the firm-level impact of digital transformation on new quality productivity remains relatively scarce. This paper explores both the direct and mediating pathways through which digital transformation affects new quality productivity, particularly by advancing digital technologies and through investment in innovation, thereby offering valuable insights for both scholarship and practice. Drawing on panel data from A-share listed firms in China from 2015 to 2022, the analysis employs multiple regression models alongside mediation analysis to deliver a thorough evaluation. The findings highlight three main conclusions: (1) Digital transformation positively and significantly influences firms’ new quality productivity, evidenced by a regression coefficient of 0.002, which is statistically significant at the 1% level and economically relevant; (2) This impact is partially mediated through improvements in digital technology, with a supporting correlation coefficient of 0.041. However, the mediating role of innovation investment lacks statistical significance, suggesting firms still have opportunities to enhance both the effectiveness and alignment of such investments; (3) The heterogeneity analysis reveals that the influence of digital transformation is more pronounced in small and medium-sized enterprises, with a coefficient of 0.002, surpassing the 0.001 effect observed in their larger counterparts. These insights offer valuable reference points for both policymakers and business leaders aiming to formulate targeted strategies. Governments are encouraged to accelerate digital infrastructure deployment and tailor policy measures to fit firms of different sizes. Enterprises, in turn, should integrate digitalization into their core strategic planning, enhance their innovation capacity, and advance technological capabilities to foster a leap in new quality productivity.