Innovation culture drives enterprise digital transformation – empirical evidence based on machine learning and text analytics

Purpose This study aims to investigate whether innovation culture drives enterprise digital transformation and identifies its indirect impacts. Design/methodology/approach The research samples comprise A-share listed enterprises from Shanghai and Shenzhen between 2011 and 2023. Text analysis and machine learning are used to measure enterprise innovation culture. Baseline regression, mediation effect and moderating effect models constructed through OLS regression examine the impact of innovation culture on enterprise digital transformation and verify the hypotheses. Findings The findings reveal that innovation culture positively contributes to enterprise digital transformation, with the conclusion remaining valid after robustness tests. Innovation culture drives digital transformation by fostering R&D investment and aligning strategic orientations. In addition, the positive impact of innovation culture on digital transformation can be strengthened if the government emphasizes innovation. Heterogeneity analysis shows that the positive effect of innovation culture on digital transformation is more significant in non-state-owned, technology-intensive and eastern enterprises. Originality/value This study analyzes innovation culture as an informal institutional factor driving enterprise digital transformation, enriching theoretical research in this area. It expands empirical research on innovation culture through large-sample quantitative analysis, contrasting with the qualitative studies and small-sample surveys prevalent in existing research. It analyzes the indirect impact of innovation culture on enterprise digital transformation by examining government attention, internal R&D investment and strategic orientation, thus elucidating the role of innovation culture in transformation.