Can Peer Effect of Digital Transformation Promote Enterprise Innovation: Evidence and Mechanism Interpretation

ABSTRACT This study investigates how digital transformation affects enterprise innovation from a peer effect perspective, considering customer concentration, managerial ability, and operational risk as mediating variables. This study utilizes A‐share listed enterprises as research samples. An unbalanced panel dataset spanning from 2011 to 2023 was constructed to explore the impact of the peer effect of digital transformation on enterprise innovation. The results suggest that the peer effect of digital transformation significantly promotes enterprise innovation. The study emphasizes the significance of decreasing customer concentration and operational risk as key pathways through which digital transformation influences enterprise innovation. Furthermore, it was discovered that industry competitive intensity positively moderates the connection between peer digital transformation and enterprise innovation. The heterogeneity test reveals that peer digital transformation has a more significant impact on enhancing the innovation of SOEs and enterprises in central regions. These empirical findings offer valuable insights for policymakers seeking to foster the coordinated development of digital transformation and enterprise innovation. This study expands the research scope of digital transformation and enterprise innovation by adopting a peer effect perspective. The findings elucidate how peer digital transformation drives enterprise innovation, offering empirical evidence for enterprises seeking to enhance innovation from a digital transformation standpoint.