Enterpeise Digital Transformation And Cost Stickiness

The rapid development of the digital economy has accelerated the deep integration of emerging digital technologies with the real economy,as society is moving swiftly into the digital era,and digital transformation is gradually integrated into various production management behaviors of enterprises,playing a role in helping micro market players to achieve high-quality development.At the same time,cost stickiness is the main content of enterprise cost management.In the face of economic and social and other external environmental uncertainties,how to effectively reduce cost stickiness and improve cost management efficiency has become an important way to increase risk prevention and improve enterprise management level.Therefore,the discussion on the relationship between enterprise digital transformation and cost stickiness provides a new idea for enterprises how to carry out cost management,and also provides micro evidence for enterprises’ digital transformation,which is of great significance to promote enterprises to actively carry out digital transformation.This study examines the relationship between digital transformation of enterprises and cost stickiness using data from Chinese A-share listed companies for the period of2009-2021.Firstly,this paper analyzes the impact of enterprise digital transformation on the cost stickiness of listed companies,and finds that digital transformation can significantly reduce the cost stickiness.Secondly,explore the mechanism of action,research shows that enterprise digital transformation can reduce cost stickiness through two channels: improving resource allocation efficiency and alleviating agency problems.Further,from the perspective of supplier and internal governance,it is found that when the supplier concentration is high,the supplier stability is poor and the supplier is far away,the reduction of cost stickiness is more pronounced in the context of digital transformation of enterprises.The CEO’s technological background and employees’ high level of qualification play a significant positive moderating role in the relationship between digital transformation of enterprises and cost stickiness.In addition,the sustainability and value effect tests are conducted on the impact of enterprise digital transformation on cost stickiness.The results show that the inhibition effect of enterprise digital transformation on cost stickiness is sustainable and can bring long-term improvement of enterprise value.Moreover,heterogeneity analysis reveals that the effect of digital transformation on reducing cost stickiness is more pronounced for firms facing higher market competition,operating in mature industries,located in the eastern region of China,and belonging to large-scale firms or non-high-tech firms.Finally,the regression results remain significant after undergoing a series of endogeneity and robustness tests.First,previous studies mainly measured digitalization from the aspects of digital underlying technology and digital infrastructure.On this basis,this paper added the dimension of digital infrastructure to comprehensively measure the digital transformation of enterprises.Secondly,this study investigates the mechanisms through which digital transformation affects cost stickiness from the perspectives of resource allocation mechanism and agency problem mechanism.Thirdly,this study examines the roles of supplier relationships and internal governance in the relationship between digital transformation and cost stickiness,providing micro-level evidence for the implementation effectiveness of digital transformation in enterprises.This study not only enriches the literature on the influencing factors of cost stickiness,but also expands the research on the economic consequences of enterprises’ digital transformation,which has important theoretical and practical significance.