Independent and joint effects of CSR and CSI on the effectiveness of digital transformation for transition economy firms

Abstract

This study examines how digital transformation affects the short-term performance and long-term value of transition economy firms as well as the moderating role of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) in these relationships. We believe that digital transformation inhibits the short-term performance but increases the long-term value of transition economy firms. Furthermore, CSR and CSI have important contingency roles in the effectiveness of digital transformation. While CSR enhances the effectiveness of digital transformation, CSI weakens it. Finally, we believe that the enhancement role of CSR is weaker than the weakening role of CSI in the effectiveness of digital transformation. Using empirical data of Chinese listed companies from 2008 to 2020, we obtain empirical evidence confirming most of these theoretical views. This study provides new insights into the literature on digital transformation and firm ethical practices and presents important practical implications.