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Traditional Trail Making Test Modified into Brand-new Assessment Tools: Digital and Walking Trail Making Test

Published on: November 23, 2019

Corporate digital transformation, internal control and total factor productivity.

Xiao Li¹, Feiyang Zhao², Zhiquan Zhao³

¹Systems and Industrial Engineering Technology Research Center, Zhongyuan University of Technology, Zhengzhou, Henan, China.

|March 20, 2024

Summary

Digital transformation boosts total factor productivity and internal control (IC) effectiveness. Effective IC mediates this impact, particularly in non-high-tech firms, driving economic growth.

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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.