| Author: | Jiang, Chang |
| Title: | Impact of digitalization on operational efficiency : an empirical investigation |
| Advisors: | Xu, Xin (MM) Jin, Yong (AF) |
| Degree: | D.B.A. |
| Year: | 2023 |
| Subject: | Management -- Technological innovations Organizational change Organizational effectiveness Stock companies -- China -- Management Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 99 pages : color illustrations, map |
| Language: | English |
| Abstract: | Digital transformation has emerged as a critical driver of organizational success in the contemporary business landscape. As organizations strive to stay competitive and meet evolving customer demands, the adoption of digital technologies and the transformation of business processes have become essential. This thesis investigates the impact of digital transformation on operational efficiency in the context of Chinese-listed companies. It explores the relationship between digital transformation and operational efficiency, considering the moderating effects of industry context and existing operational efficiency-levels. Utilizing Chinese-listed companies and textual analysis of the corresponding annual reports from 2010 to 2020, this thesis investigates the effects of digital transformation on firm-level-operational efficiency. The empirical findings of this study reveal that digital transformation has a significant and positive impact on operational efficiency in Chinese-listed companies. The results demonstrate that organizations investing in digital transformation initiatives gain higher levels of operational efficiency. This is achieved through the adoption of digital-technologies, process optimization, and enhanced decision-making capabilities. The study identifies several key factors contributing to this positive impact, including improved data analytics, automation, and integration of digital tools into various business functions. The study further highlights the moderating effects of industry context on the relationship between digital transformation and operational efficiency. High-tech industries, characterized by advanced technological capabilities and a focus on innovation, demonstrate a more pronounced positive relationship between digital transformation and operational efficiency. This suggests that the benefits of digital transformation may be amplified in industries where digital technologies are more deeply integrated into the core operations. The existing operational efficiency level of firms was found to moderate the impact of digital transformation on operationnal efficiency. Firms with lower initial operational efficiency levels tend to make greater improvements in operational efficiency following digital transformation efforts. In contrast, firms with already high levels of operational efficiency may face diminishing returns or encounter challenges in achieving further efficiency gains through digital transformation. The implications of these findings are significant for practitioners and policymakers. The results highlight the importance of strategic planning, resource allocation, and organizational readiness for achieving the desired outcomes from digital transformation initiatives. Organizations should carefully consider their industry context, existing operational efficiency levels, and the specific technologies and practices employed during digital transformation efforts. Strategic investments in digital capabilities, workforce training, and change management are essential to realize the full potential of digital transformation and optimize operational efficiency. The contributions of this thesis span both theoretical and practical realms. Theoretically, this research advances our understanding of the relationship between digital transformation and operational efficiency, particularly in the Chinese context. It contributes to dynamic capabilities theory by emphasizing the role of digital transformation as a dynamic capability that enhances operational efficiency. The study provides empirical evidence and insights into the mechanisms through which digital transformation impacts operational efficiency. From a practical standpoint, the findings offer actionable guidance for organizations embarking on digital transformation journeys. They inform strategic decision-making, resource allocation, and risk management in the pursuit of operational efficiency gains. The study emphasizes the need for organizations to develop digital capabilities, foster a supportive organizational culture, and address the challenges associated with digital transformation effectively. This thesis also contributes to our understanding of the impact of digital transformation on operational efficiency in Chinese-listed companies. The findings underscore the transformative potential of digital technologies and processes, while acknowledging the complexities and challenges associated with digital transformation. The insights gained from this research have practical implications for organizations seeking to leverage digital transformation for enhanced operational efficiency. Furthermore, the study lays the foundation for future investigations in this dynamic and evolving field, inspiring further research on the relationship between digital transformation, operational efficiency, and organizational performance. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 7186.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.07 MB | Adobe PDF | View/Open |
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