Digital Transformation and Total Factor Productivity: The Moderating Role of Environmental Uncertainty

Amidst the significant transformations taking place over the past century, one of the key concerns for enterprises is whether digital transformation can enhance factor allocation efficiency and boost total factor productivity, which is crucial for their sustainable growth. By analyzing sample data from China's A-share listed companies between 2014 and 2023, this paper explores the effect of digital transformation on total factor productivity. The findings reveal that digital transformation has a positive impact on total factor productivity, while environmental uncertainty acts as a positive moderator in this relationship. Furthermore, the moderating effect is more pronounced in state-owned enterprises (SOEs) and larger firms. These conclusions offer valuable insights for Chinese enterprises, encouraging them to embrace digital transformation as a means to increase their total factor productivity.