Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17–19, 2023, Beijing, China

Research Article

The Impact of Digital Transformation on Absorptive Capacity: Moderating Effect Based on Executive Incentives

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  • @INPROCEEDINGS{10.4108/eai.17-11-2023.2342688,
        author={Fenghai  Zhang and Jingli  Xu},
        title={The Impact of Digital Transformation on Absorptive Capacity: Moderating Effect Based on Executive Incentives},
        proceedings={Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17--19, 2023, Beijing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2024},
        month={2},
        keywords={digital transformation absorptive capacity executive compensation incentive executive equity incentive},
        doi={10.4108/eai.17-11-2023.2342688}
    }
    
  • Fenghai Zhang
    Jingli Xu
    Year: 2024
    The Impact of Digital Transformation on Absorptive Capacity: Moderating Effect Based on Executive Incentives
    ICEMME
    EAI
    DOI: 10.4108/eai.17-11-2023.2342688
Fenghai Zhang1, Jingli Xu1,*
  • 1: Dalian Polytechnic University
*Contact email: xujingli1123@163.com

Abstract

This paper selects the relevant data of A-share listed companies of manufacturing enterprises from 2014 to 2021 to analyze the impact of digital transformation on the absorptive capacity of manufacturing enterprises and the regulatory effect of executive incentives on digital transformation and absorptive capacity of enterprises. The results show that: (1) Digital transformation has a significant positive correlation to the absorptive capacity of manufacturing enterprises; (2) Executive compensation incentives can positively regulate the relationship between digital transformation and absorptive capacity of manufacturing enterprises; (3) The negative direction of executive equity incentives regulates the relationship between digital transformation and the absorptive capacity of manufacturing enterprises.