Digital transformation and enterprise dual innovation: Evidence from China's A-share listed companies

Abstract

Digital transformation is an important means to promote the development of enterprises' dual innovation coordinated development. Based on the data of China's A-share listed enterprises from 2007 to 2022, this paper uses the two-way fixed effect model to conduct an empirical test, and discusses the influence of digital transformation degree on enterprises' dual innovation performance and its channel mechanism. The findings are as follows: (1) Digital transformation significantly promotes exploratory innovation and exploitative innovation, especially exploratory innovation. (2) Mechanism test shows that digital transformation promotes enterprise dual innovation by easing financing constraints and improving organizational human capital structure. (3) Heterogeneity research shows that digital transformation has a more significant effect on the improvement of dual innovation in enterprises with high operational efficiency and enterprises in the eastern region. Further, the countermeasures and suggestions are put forward as follows: First, enterprises should clarify transformation goals and promote enterprise digitalization. Second, strengthen the construction of digital infrastructure to facilitate the digital transformation process of enterprises. Third, improve the market supervision system. Fourth, promote the agglomeration of dual innovation factors at multiple levels and promote the improvement of regional dual innovation capability.