Abstract:

Based on the factor-matching theory, this study investigates the impact of digital transformation on corporate performance both theoretically and empirically. The results indicate a non–linear, inverted U–shaped" influence of digital transformation on corporate performance. Moderate digital transformation can enhance corporate performance; while excessive digitalization leads to a decline in profits due to mismatches between humans and machines. An enhancement in human capital increases the degree of human-machine alignment, and the improvement in non-cognitive abilities resulting from a more advanced educational structure significantly bolsters the positive effect of digital transformation on corporate performance. The inverted U-shaped impact of digital transformation on corporate performance is more pronounced in areas with lower human capital, regions with higher technical skills, and among enterprises that are pioneers in digital transformation. Further analysis reveals that the appropriateness of digital economy policies enhances human–machine matching in enterprises. Nonetheless, as the disparity between digital transformation policies and their implementation increases, the facilitative effect of digital transformation on corporate performance comparatively weakens.

Key words:

digital transformation, enterprise performance, inverted U–shaped, human–machine matching