The Impact Of Digitalization On Business Performance

Since 2012,the digital economy has occupied an very important position in the strategic layout of China's economic development.The "Twelfth Five-Year Plan Period for the Development of Strategic Emerging Industries","Made in China 2025",and "Guidelines for the Development of the Digital Economy" The top-level plans such as the "Opinions" continue to promote the in-depth development of China's digital economy,and at the same time,the size of the digital economy in the gross national product continues to increase.In the context of the development of the digital economy industry,emerging technologies such as big data and cloud computing have also had a trans formative impact on the operating methods of micro-enterprises.More and more traditional enterprises have begun to try digital transformation.Manufacturing companies have begun to transform their digital production processes and improve their digital production control level.Due to the strong impact of the Internet ecommerce industry,the retail industry has transformed into digital marketing,promoted precise marketing strategies,and deployed online and offline integrated sales platforms.The financial industry is also impacted by technologies such as Internet payments.It has begun to use high-tech such as big data and block-chain to transform to fintech to promote the further transformation and upgrading of the financial services industry.With the deepening of the digital transformation of enterprises,the research on the digital benefits of enterprises from a micro perspective has certain innovation significance and economic value.This article firstly puts forward research questions on the current status of enterprise digital transformation,and summarizes the research literature on the impact of digitization on enterprise performance by domestic and foreign scholars;Secondly,by constructing the three major index variables of the enterprise's digitization degree,this paper constructs a model from the two dimensions of financial and market performance and conducts an empirical regression analysis.Finally,through the regression analysis of sub-sectors(manufacturing,retail,and financial),this paper further explores the industry differences of digitalization,and hope to propose effective policy recommendations for the digital transformation of enterprises.First of all,through a literature review and summary of previous studies,this article defines and summarizes the concept of enterprise digitization and the measurement indicators of the degree of digitization,and combs the possible empirical relationship between enterprise digitization and enterprise financial and market performance.At the same time,this article conducted an in-depth discussion on the actual development status of China's enterprises' digitalization and the development status of China's key industries.Secondly,in theoretical research,this paper summarizes the IT capability theory based on the enterprise resource concept,IT investment paradox theory,and IT application stage theory.At the same time,it proposes the mechanism by which enterprise digitization affects enterprise performance through strategic level,infrastructure and human capital level and their resource complementation.On this basis,this article puts forward relevant assumptions about the impact of enterprise digitization index on enterprise financial and market performance.In terms of sample selection,this paper selects 119 listed companies that have carried out digital strategic transformation in the three major industries of manufacturing,retail and finance as the research sample data.According to statistics from the National Bureau of Statistics and the Institute of Information and Communications Technology,the manufacturing,retail,and financial industries have contributed the largest GDP added value,On the other hand,it is also the three largest industries with the highest scale of industrial digitization and the deepest integration of digitization and industry,therefore,the research sample in this paper is highly representative.In terms of model construction,this paper introduces the digitization index and related control variables with the three core variables of enterprise digital strategy,digital capital investment,and digital personnel input.At the same time,it uses the roe and Tobin's Q to measure corporate the financial performance and market performance of corporate,and builds a relationship model between digitalization and corporate performance from the two dimensions of corporate finance and market performance.Finally,this article selects the fixed effect model of digitization and corporate performance to carry out regression analysis,and it further explores the industry differences in the impact of enterprise digitalization through the regression analysis of sub-sectors(manufacturing,retail,and financial).The empirical results show that,firstly,in the short term,the digitization of enterprises has a negative impact on financial performance;Secondly,in the short term,except for the financial industry,digitization has a positive effect on corporate market performance;Thirdly,when digitization has an impact on corporate financial performance,Lagging effects;Fourth,the degree of digital impact is heterogeneous across industries.Finally,based on the empirical results,this article puts forward certain policy recommendations for the digital transformation direction and future layout of listed companies in different industries,with a view to providing certain help and guidance to companies in China at a critical stage of digital transformation.