Research On The Effect And Mechanism Of Digital Transformation On The Financial Performance Of Manufacturing Enterprises

With the rapid development of global digital economy,digital transformation has become the only way for enterprises to adapt to the market environment and achieve sustainable development.At the 12 th National People’s Congress in 2015,Premier Li Keqiang put forward the action program of "Made in China 2025",which clearly points out that intelligent manufacturing is the core driving force to achieve high-quality development of China’s manufacturing industry.The manufacturing industry is the key industry in our country,which has contributed greatly to promote the national economy development.However,under the influence of internal and external economic development and competitive pressure,traditional manufacturing enterprises have obvious manufacturing disadvantages through human resource analysis.After the digital transformation of enterprises,digital technology can be used to solve the problem of information asymmetry among suppliers,manufacturers and customers,and improve production efficiency and reduce enterprise costs by means of production data collection and analysis,state perception and control.Improve the core competitiveness of manufacturing enterprises.However,as a matter of fact,most enterprises still hold a wait-and-see attitude towards digital transformation due to the complex process and lack of experience in implementing digital transformation.Theoretically,relevant research is still in its infancy,and scholars still hold different views on the relationship between digital transformation and financial performance.In addition,there are few literatures on how digital transformation affects corporate financial performance through case studies.This paper reviews the relevant literature on digital transformation and financial performance,analyzes the mechanism of action between enterprise digital transformation and performance theoretically,and conducts in-depth research through the combination of case studies and empirical methods.In the case part,taking Xugong Group Construction Machinery Co.,LTD.(hereinafter referred to as Xugong Machinery),the leader in the practice of digital transformation in the construction machinery industry,as the research object,combined with enterprise data to analyze the impact of its digital transformation on its financial performance,compared and analyzed its performance before and after digital transformation,observed the changes in its financial performance,and drew the following conclusions: Digital transformation can promote the improvement of enterprise long-term performance and help enterprises accelerate the creation of enterprise value.In the empirical part,the results show that:(1)digital transformation has a significantly positive correlation with corporate financial performance;(2)Digital transformation can positively promote corporate financial performance through three channels: enterprise cost,production efficiency and technological innovation.Based on the above research content,in order to strengthen the confidence of traditional enterprises in transformation and accelerate the pace of transformation,this paper puts forward the following suggestions:(1)strengthen the training of digital talents;(2)Transforming digital thinking and cognition;(3)Promote digitalization based on the actual situation of enterprises.This study can not only deepen the cognition of the influence mechanism of digital transformation on corporate financial performance theoretically,but also provide strong micro evidence for the digital transformation of traditional manufacturing industry in practice.