Abstract
The convergence of the digital economy and the physical economy is a global trend, with enterprises undergoing digital transformation not only for more online orders but also for smarter ways to produce. While existing literature has focused on reasons for digital transformation within enterprises, it has often overlooked the impact of external information technology infrastructure on business digital transformation. This study uses data from Chinese A-share listed enterprises from 2003 to 2021 and employs text-mining techniques to create firm-level variables related to digital transformation. The ‘Pilot Zone for the Integration of Informatization and Industrialization’ policy serves as an indicator of information technology development. By utilizing the difference-in-differences method, the study examines the influence of information technology development on corporate digital transformation. The results indicate that information technology development significantly aids corporate digital transformation by reducing operational risks and boosting innovation capabilities. These findings provide valuable micro-level evidence on how information technology infrastructure supports corporate digital transformation, offering fresh insights into the mechanisms driving this process.
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