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Area of Science:

  • Business and Economics
  • Information Systems

Background:

  • Corporate digital transformation is reshaping business operations.
  • Understanding its impact on productivity and internal control is crucial.

Purpose of the Study:

  • To investigate how digital transformation affects total factor productivity and internal control (IC) effectiveness.
  • To examine the mediating role of IC in the digital transformation-productivity relationship.
  • To explore heterogeneity in non-high-tech enterprises.

Main Methods:

  • Theoretical framework based on Resource-based theory and Internal Control (IC) theory.
  • Empirical analysis of the interplay between digital transformation, IC, and total factor productivity.

Main Results:

  • Digital transformation positively impacts both total factor productivity and IC effectiveness.
  • Internal control (IC) significantly mediates the relationship between digital transformation and total factor productivity.
  • Digital transformation shows a more pronounced effect on IC effectiveness and total factor productivity in non-high-tech enterprises.

Conclusions:

  • Digital transformation enhances corporate performance through improved internal controls.
  • Policy recommendations include advancing digital infrastructure and optimizing enterprise digital strategies.
  • Non-high-tech firms can leverage digital transformation for enhanced governance and economic development.