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  11. Can Sharing Auditors With Customers Improve Suppliers Digital Transformation?
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  11. Can Sharing Auditors With Customers Improve Suppliers Digital Transformation?

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Can sharing auditors with customers improve suppliers digital transformation?

Xiaohui Liu1, Yan Chen1

  • 1School of Accountancy, Shandong University of Finance and Economics, Jinan, China.

Frontiers in Psychology
|July 15, 2024

View abstract on PubMed

Summary
This summary is machine-generated.

Sharing auditors with customers boosts supplier digital transformation, particularly for those with less power and attention. This enhances supervision and eases financial constraints, ultimately promoting innovation.

Keywords:
digital transformationinnovationshared auditorsuppliers

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Area of Science:

  • Business and Management
  • Information Systems
  • Auditing

Background:

  • Digital transformation is crucial for high-quality development and national strategies.
  • Understanding factors influencing enterprise digital transformation is essential.

Purpose of the Study:

  • To investigate the impact of shared auditors between customers and suppliers on supplier digital transformation.
  • To explore the mechanisms through which shared auditors influence this process.

Main Methods:

  • Empirical analysis of China's A-share listed companies from 2007 to 2021.
  • Examining the relationship between shared auditors and supplier digital transformation.

Main Results:

  • Sharing auditors with customers positively impacts supplier digital transformation.
supply chain
  • The effect is more pronounced for suppliers with weaker bargaining power, lower media visibility, and higher auditor industry expertise.
  • Mechanisms include enhanced supervision and alleviated financing constraints.

    • Conclusions:

    • Shared auditors serve as a catalyst for supplier digital transformation.
    • This transformation, facilitated by shared auditors, can lead to increased innovation.
    • Findings offer empirical support for overcoming digital transformation challenges.