Navigating uncertainty: The impact of environmental instability on enterprise digital transformation.

ABSTRACT: This study investigates the impact of environmental uncertainty on the digital transformation of Chinese A-share listed companies from 2013 to 2022. Our empirical analysis reveals that environmental uncertainty negatively affects digital transformation by inducing managerial myopia, hindering research and development (R&D) investment, and exacerbating financial constraints. However, these negative effects can be mitigated by increasing management shareholding, which aligns managers' interests with long-term goals, providing digital transformation subsidies to lower financial barriers, and fostering a favorable legal environment to protect digital investments and innovation. These findings offer valuable insights for understanding how environmental uncertainty influences digital transformat

SUBMITTER: Luo F 

PROVIDER: S-EPMC11620587 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature