A Study On The Impact Of Digital Transformation On The Innovation Capacity Of Companies

At present,China’s digital transformation is developing rapidly,bringing benefits and service levels to enterprises and becoming a new driving force for China’s high-quality economic development.Waves of digital transformation such as mobile internet,artificial intelligence,big data and cloud computing are coming one after another.Digital transformation is a strategy that most large enterprises are implementing.Enterprises invest huge amounts of money and substantial technical capital to digitise and inform their business systems and infrastructure,which is an important way to achieve sustainable development.However,there is little research and no consensus on the impact of digital transformation on business innovation.Some scholars argue that the application of digital transformation has changed the ability of companies to restructure and transform knowledge,leading to changes in the traditional organisation of production and facilitating the flow of innovative resources.At the same time,there are paradoxes in academia regarding digital transformation.They argue that companies invest heavily in digital transformation and do not achieve a corresponding return.Whether digital transformation can actually improve the innovation capacity of companies therefore remains a matter of debate and requires research into whether it can have an impact and further research into how it can do so.In the context of deepening digital transformation,this paper will examine at a micro level whether and how digital transformation has an impact on the overall innovation process of companies,with important theoretical and practical implications for their digital development.Using a combination of literature analysis and empirical research,this paper introduces corporate innovation theory,information asymmetry theory and stakeholder theory into the theoretical framework,and uses a sample of Chinese A-share listed companies from 2011 to 2020 to investigate the role of the digital transformation process on corporate innovation capabilities,as well as to measure how corporate innovation capabilities are affected through the mediating effect of reducing financing constraints The heterogeneity in the nature of ownership and firm size is also analysed.In the study of the impact of digital transformation on firms’ innovation capabilities,the financing constraint is used as a mediator in order to build an empirical model and analyse the relationship between the three effects.The following conclusions and recommendations are drawn: firstly,digital transformation can effectively improve the innovation capability of enterprises;it can also promote enterprise innovation by alleviating financing constraints;the heterogeneity test reveals that the impact of enterprise digital transformation on enterprise innovation is more obvious among non-state enterprises and larger enterprises.Second,enterprises should actively engage in the wave of digital transformation to improve their competitiveness.Enterprises should improve their own basic digital capacity building and build their own digital management structure in the process of digital transformation.Thirdly,the government should steadily popularise the digital transformation of enterprises,so as to improve China’s digital level,conform to the development of the times,and help China achieve socialist modernisation in 2035.