The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control

Yang (Eric) Zhou; Jingjun (David) Xu; Zhiying Liu

doi:10.1002/mde.4009

The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control

Yang (Eric) Zhou, Jingjun (David) Xu^*, Zhiying Liu^*

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

11 Citations (Scopus)

Abstract

It is critical to explore the mechanisms by which digital transformation (DT) influences firms' innovation performance (IP) in the pervasive digital epoch. This study constructs a serial mediation model to test the underlying mechanism of how DT affects IP. We find that DT can promote IP significantly, and such impact is heterogeneous. Mechanism tests reveal that analyst coverage and internal control quality have the serial mediation effects in the path of DT affecting IP. These findings still hold after several robustness checks. Our discoveries provide new theoretical and practical implications to the DT and innovation research domains. © 2023 John Wiley & Sons Ltd.

Original language	English
Pages (from-to)	373-393
Journal	Managerial and Decision Economics
Volume	45
Issue number	1
Online published	20 Sept 2023
DOIs	https://doi.org/10.1002/mde.4009
Publication status	Published - Jan 2024

Publisher's Copyright Statement

COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: This is the peer reviewed version of the following article: Zhou, Y., Xu, J., & Liu, Z. (2023). The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control. Managerial and Decision Economics, 45(1)
which has been published in final form at https://doi.org/10.1002/mde.4009. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.

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abstract = "It is critical to explore the mechanisms by which digital transformation (DT) influences firms' innovation performance (IP) in the pervasive digital epoch. This study constructs a serial mediation model to test the underlying mechanism of how DT affects IP. We find that DT can promote IP significantly, and such impact is heterogeneous. Mechanism tests reveal that analyst coverage and internal control quality have the serial mediation effects in the path of DT affecting IP. These findings still hold after several robustness checks. Our discoveries provide new theoretical and practical implications to the DT and innovation research domains. {\textcopyright} 2023 John Wiley & Sons Ltd.",

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AB - It is critical to explore the mechanisms by which digital transformation (DT) influences firms' innovation performance (IP) in the pervasive digital epoch. This study constructs a serial mediation model to test the underlying mechanism of how DT affects IP. We find that DT can promote IP significantly, and such impact is heterogeneous. Mechanism tests reveal that analyst coverage and internal control quality have the serial mediation effects in the path of DT affecting IP. These findings still hold after several robustness checks. Our discoveries provide new theoretical and practical implications to the DT and innovation research domains. © 2023 John Wiley & Sons Ltd.

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The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control

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The impact of digital transformation on corporate innovation: Roles of analyst coverage and internal control

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GRF: Do Job Applicants and HR Professionals Resist AI-Led Recruitment System, Why, and How to Mitigate? An Organizational Justice Perspective

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