{"title":"Political conformity and digital transformation: Evidence from China","authors":"Haiyan Yang , Linlin Chen , Yuyu Zhang","doi":"10.1016/j.eap.2024.11.014","DOIUrl":null,"url":null,"abstract":"<div><div>This study investigates the influence of political conformity on digital transformation in Chinese family businesses from 2011 to 2020. We find that political conformity significantly boosts digital transformation by strengthening strategic leadership, technology focus, and organizational capabilities. It also fosters risk-taking, reduces agency costs, and eases financial constraints. The impact is more pronounced in situations in contexts with high economic policy uncertainty, when executives have limited IT knowledge, family members hold positions in the party committee, and the firm is geographically proximate to the political center, Beijing. Additionally, aligning political conformity with technology strategies not only advances digital transformation but also enhances the businesses' Environmental, Social, and Governance (ESG) profile and firm value.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"84 ","pages":"Pages 1979-1997"},"PeriodicalIF":7.9000,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Analysis and Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0313592624003266","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the influence of political conformity on digital transformation in Chinese family businesses from 2011 to 2020. We find that political conformity significantly boosts digital transformation by strengthening strategic leadership, technology focus, and organizational capabilities. It also fosters risk-taking, reduces agency costs, and eases financial constraints. The impact is more pronounced in situations in contexts with high economic policy uncertainty, when executives have limited IT knowledge, family members hold positions in the party committee, and the firm is geographically proximate to the political center, Beijing. Additionally, aligning political conformity with technology strategies not only advances digital transformation but also enhances the businesses' Environmental, Social, and Governance (ESG) profile and firm value.
期刊介绍：
Economic Analysis and Policy (established 1970) publishes articles from all branches of economics with a particular focus on research, theoretical and applied, which has strong policy relevance. The journal also publishes survey articles and empirical replications on key policy issues. Authors are expected to highlight the main insights in a non-technical introduction and in the conclusion.
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