The impact of network infrastructure on enterprise digital transformation --A quasi-natural experiment from the broadband China Strategy

In this paper, a multi-period difference-in-difference model is constructed to investigate the impact of network infrastructure on enterprise digital transformation. The results show that network infrastructure has effectively promoted the digital transformation of enterprises. Meanwhile, as the scale of network infrastructure construction expands, the role of network infrastructure in promoting enterprise digital transformation will be enhanced. Based on the mechanism analysis, network infrastructure promotes enterprise digital transformation through two channels: easing corporate financing constraints and improving core technical capabilities. Furthermore, the role of network infrastructure in enterprise digital transformation is not invariable, the effect is more pronounced in non-state-owned enterprises, growth enterprises, manufacturing enterprises, and enterprises located in developed cities.

Automated summary

In this study, a multi-period difference-in-difference model is used to examine the impact of network infrastructure on enterprise digital transformation. The findings indicate that network infrastructure effectively promotes digital transformation of enterprises. Moreover, the role of network infrastructure in promoting digital transformation is strengthened as the scale of infrastructure construction expands. Mechanism analysis suggests that network infrastructure facilitates digital transformation through easing corporate financing constraints and improving core technical capabilities. Additionally, the impact of network infrastructure on digital transformation varies, with a more pronounced effect observed in non-state-owned enterprises, growth enterprises, manufacturing enterprises, and enterprises located in developed cities.