Science Research Management ›› 2023, Vol. 44 ›› Issue (9): 39-46.

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The institutional motivation and process of digital transformation of enterprises

Yang Shuyan1, Song Tiebo1, Wu Xiaojie2   

  1. 1. School of Business Administration, South China University of Technology, Guangzhou 510641, Guangdong, China;   2. School of Management, Guangdong University of Technology, Guangzhou 510520, Guangdong, China
  • Received:2021-11-17 Revised:2022-03-14 Online:2023-09-20 Published:2023-09-09

Abstract:   The 14th Five-Year Plan of China calls for accelerating digital development, building a digital China, giving full play to the advantages of massive data and rich application scenarios, promoting the deep integration of digital technology with the real economy, and enabling the transformation and upgrading of traditional industries. As an important social technological and institutional phenomenon, digital transformation is gradually becoming an important starting point for the innovative development mode of global enterprises. At present, China′s manufacturing industry is facing great pressure. Faced with this dilemma, how to give full play to and release the institutional advantages of socialism with Chinese characteristics, integrate government and market resources, use digital and information technology, and concentrate on promoting the digital transformation of manufacturing industry has become the core issue of common concern of politics and industry.At present, how institutional pressures affect the process mechanism of enterprises′ response to digital transformation needs further research and discussion.From the perspective of institutional theory and organizational cognition, this paper discussed the institutional motivation and process of digital transformation of manufacturing and digital transformation of business model. Based on the theoretical path of "institutional environment-organizational cognition-digital transformation", this paper used the structural equation model to test the influence of institutional pressures (regulation, cognition and norm) and organizational cognition (urgency and manageability cognition) on enterprise digital transformation with data from 287 manufacturing enterprises. The results showed that: firstly, different institutional pressures have different impacts on the two types of digital transformation. The digital transformation of manufacturing is more response to normative pressure, and the digital transformation of business model is more response to cognitive pressure, while the regulative pressure from the government is not the primary institutional pressure to be responded by the two digital transformation modes, indicating that the digital transformation of enterprises is more based on the requirements of market legitimacy, rather than responding to the demands of government system. Secondly, in the process of digital transformation of manufacturing and digital transformation of business model, organizational cognition plays a mediating role between institutional pressure and enterprise digitalization response. The research results will enrich the research on the process mechanism of enterprises′ response to digital transformation, and provide theoretical guidance and policy suggestions for China′s manufacturing enterprises to carry out digital transformation.The theoretical contribution of this paper lies in three aspects: First, based on the institutional theory and starting from the "government-market" dual institutional context, this paper found that enterprises will have different responses to digital transformation when facing institutional pressures from different sources of government and market, and extends the relevant research on institutional theory and corporate strategic response. Second, from the perspective of organizational cognition, this paper focused on the process of organizational evaluation of strategic issues, and discussed how urgency cognition and manageability cognition deconstruct the "black box" of the influence process of institutional environment on enterprises′ response to digital transformation. Third, the research on digital transformation of enterprises can be divided into digital transformation of manufacturing and digital transformation of business model. It is considered that the digital transformation of enterprises will not only increase the use of digital technology in enterprises, but also include the integration and cross-application of digital technology in company products and services, internal and external activities, which will expand the existing research based on the coupling perspective of "technology-market" and enrich the research results of digital transformation of enterprises.

Key words: digital transformation, institutional pressure, organizational cognition, digitalization of manufacturing process, digitalization , of business model