Research on the Impact of Digital Transformation on Total Factor Productivity of Manufacturing Enterprises

Using a dataset of Chinese A-share manufacturing listed companies from 2007 to 2022, this study constructs an enterprise digitalization index based on annual report text data and empirically investigates the impact of digital transformation on the Total Factor Productivity (TFP) of manufacturing enterprises in China. The findings reveal that digital transformation significantly enhances the TFP of manufacturing enterprises through various mechanisms, including stimulating innovative product research and development, fostering innovation capabilities, optimizing resource allocation, and upgrading human capital. Moreover, the study explores the heterogeneity of this impact across different regions and enterprise levels. It is observed that the positive effect of digital transformation is more pronounced for enterprises in the eastern region compared to those in the central and western regions. High-tech enterprises experience a more significant impact than low-tech enterprises, and the effect is more substantial for non-state-owned enterprises compared to state-owned enterprises. Additionally, the impact is more pronounced for enterprises in the growth and maturity stages than for those in the decline stage. This paper also integrates theory with practical reality, offering policy recommendations relevant to manufacturing industry.