Research on the Relationship between Digital Transformation and Enterprise Performance

Based on the data of A-share listed companies from 2014 to 2023, this paper empirically studies the impact of digital transformation on enterprise performance and its mechanism. It is found that digital transformation has a significant negative impact on enterprise performance as a whole, and this impact is heterogeneous due to different enterprise scales: large enterprises have a negative impact on enterprise performance in the early stage of digital transformation due to organizational complexity and resource investment pressure. For small enterprises, the negative impact of digital transformation is more significant because of resource constraints and short capabilities. In addition, government subsidies play a positive regulatory role in the process of digital transformation, which can alleviate the negative impact of digital transformation on enterprise performance. This paper further discusses the adjustment mechanism of enterprise scale, government subsidies, and other factors on the effect of digital transformation, which provides a theoretical basis for enterprises to formulate differentiated transformation strategies and a reference for policymakers to optimize support measures. The research conclusion enriches the theoretical framework of the relationship between digital transformation and enterprise performance and provides practical enlightenment for enterprises to achieve high-quality development in the digital economy era.