How does digital transformation affect corporate governance paradigms? A synthesis of the literature

Yulong Sun, Juancan Guo

Article ID: 8081
Vol 7, Issue 2, 2024

VIEWS - 914 (Abstract)

Abstract


At present, digital transformation has become a vital way for companies to achieve sustainable growth. This paper reviews the literature on the correlation between digital transformation and corporate governance paradigm, analyzes the specific impact mechanism of AI technology and big data technology in the field of corporate governance, and explores the influence effect of the most popular ChatGPT technology on corporate governance from the perspective of business practice. It is found that digital transformation has an important impact on stakeholder management, information disclosure, green governance and other aspects of corporate governance. The purpose of the study is to provide a new reference for the construction of corporate governance paradigm and help companies achieve long-term development in the digital wave.


Keywords


digital transformation; digital technology; corporate governance

Full Text:

PDF


References


1. Ma D, Zhu Q. Innovation in emerging economies: Research on the digital economy driving high-quality green development. Journal of Business Research. 2022; 145: 801-813. doi: 10.1016/j.jbusres.2022.03.041

2. Boeva B, Zhivkova S, & Stoychev I. Corporate governance and the sustainable development,2021; https://revistia.com/index.php/ejes/article/view/7006.

3. Schwab K. The fourth industrial revolution: What it means, how to respond. Geneva, Switzerland: World Economic Forum; 2016.

4. Guo JT, Luo GY. How the tax burden affects the high-quality development of enterprises: the moderating effect based on the digital transformation of enterprises. Journal of Shenzhen University (Humanities and Social Sciences Edition). 2023; 40(04): 1–11.

5. Bharadwaj AS. A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. MIS Quarterly. 2000; 24(1): 169. doi: 10.2307/3250983

6. Zhao X, Cai L. Digital transformation and corporate ESG: Evidence from China. Finance Research Letters. 2023; 58: 104310. doi: 10.1016/j.frl.2023.104310

7. Yang P, Hao X, Wang L, et al. Moving toward sustainable development: the influence of digital transformation on corporate ESG performance. Kybernetes. 2023; 53(2): 669-687. doi: 10.1108/k-03-2023-0521

8. Niu Y, Wen W, Wang S, et al. Breaking barriers to innovation: The power of digital transformation. Finance Research Letters. 2023; 51: 103457. doi: 10.1016/j.frl.2022.103457

9. Tian G, Li B, Cheng Y. Does digital transformation matter for corporate risk-taking? Finance Research Letters. 2022; 49: 103107. doi: 10.1016/j.frl.2022.103107

10. Xu Y, Wang L, Xiong Y, et al. Does digital transformation foster corporate social responsibility? Evidence from Chinese mining industry. Journal of Environmental Management. 2023; 344: 118646. doi: 10.1016/j.jenvman.2023.118646

11. Li S, Yang Z, Tian Y. Digital transformation and corporate performance: evidence from China. China Economic Journal. 2023; 16(3): 312-334. doi: 10.1080/17538963.2023.2254138

12. Gao F, Lin C, Zhai H. Digital Transformation, Corporate Innovation, and International Strategy: Empirical Evidence from Listed Companies in China. Sustainability. 2022; 14(13): 8137. doi: 10.3390/su14138137

13. Van Eck NJ, Waltman L. Software survey: VOSviewer, a computer program for bibliometric mapping. Scientometrics. 2009; 84(2): 523-538. doi: 10.1007/s11192-009-0146-3

14. Ellegaard O, Wallin JA. The bibliometric analysis of scholarly production: How great is the impact? Scientometrics. 2015; 105(3): 1809-1831. doi: 10.1007/s11192-015-1645-z

15. Giustiziero G, Kretschmer T, Somaya D, et al. Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm. Strategic Management Journal. 2022; 44(6): 1391-1424. doi: 10.1002/smj.3365

16. Zhang H, Zhang Q. How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration. Sustainability. 2023; 15(3): 1896. doi: 10.3390/su15031896

17. Chen H, Tian Z. Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach. Journal of Business Research. 2022; 139: 184-193. doi: 10.1016/j.jbusres.2021.09.048

18. Mooi EA, Frambach RT. Encouraging innovation in business relationships—A research note. Journal of Business Research. 2012; 65(7): 1025-1030. doi: 10.1016/j.jbusres.2011.03.016

19. Frynas JG, Mol MJ, Mellahi K. Management Innovation Made in China: Haier’s Rendanheyi. California Management Review. 2018; 61(1): 71-93. doi: 10.1177/0008125618790244

20. Asif M, Yang L, Hashim M. The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China. Sustainability. 2024; 16(7): 2651. doi: 10.3390/su16072651

21. Long H, Feng GF, Chang CP. How does ESG performance promote corporate green innovation? Economic Change and Restructuring. 2023; 56(4): 2889-2913. doi: 10.1007/s10644-023-09536-2

22. Song M, Wang S, Zhang H. Could environmental regulation and R&D tax incentives affect green product innovation? Journal of Cleaner Production. 2020; 258: 120849. doi: 10.1016/j.jclepro.2020.120849

23. Cui J, Wang SW, & Xin YC. (2020). Research on technical framework of smart grid data management from consortium blockchain perspective. In: Proceedings of the CSEE.

24. Li D, Shen W. Can Corporate Digitalization Promote Green Innovation? The Moderating Roles of Internal Control and Institutional Ownership. Sustainability. 2021; 13(24): 13983. doi: 10.3390/su132413983

25. Siachou E, Vrontis D, Trichina E. Can traditional organizations be digitally transformed by themselves? The moderating role of absorptive capacity and strategic interdependence. Journal of Business Research. 2021; 124: 408–421. doi: 10.1016/j.jbusres.2020.11.011

26. Li D, Liu J. Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research. 2014; 67(1): 2793–2799. doi: 10.1016/j.jbusres.2012.08.007

27. Matarazzo M, Penco L, Profumo G, et al. Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research. 2021; 123: 642–656. doi: 10.1016/j.jbusres.2020.10.033

28. Feng H, Wang F, Song G, et al. Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism. International Journal of Environmental Research and Public Health. 2022; 19(17): 10614. doi:10.3390/ijerph191710614

29. Ellström D, Holtström J, Berg E, et al. Dynamic capabilities for digital transformation. Journal of Strategy and Management. 2021; 15(2): 272–286. doi: 10.1108/jsma-04-2021-0089

30. Yousaf Z. Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation. Environmental Science and Pollution Research. 2021; 28(39): 54863-54875. doi: 10.1007/s11356-021-14343-1

31. Su X, Wang S, Li F. The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities. Sustainability. 2023; 15(18): 13506. doi: 10.3390/su151813506

32. Mele G, Capaldo G, Secundo G, et al. Revisiting the idea of knowledge-based dynamic capabilities for digital transformation. Journal of Knowledge Management. 2023; 28(2): 532-563. doi: 10.1108/jkm-02-2023-0121

33. Jiang Z, Lyu P, Ye L, et al. Green innovation transformation, economic sustainability and energy consumption during China’s new normal stage. Journal of Cleaner Production. 2020; 273: 123044. doi: 10.1016/j.jclepro.2020.123044

34. Fosu E, Yi K, Asiedu D. The effect of CSR on corporate social performance: Mediating role of corporate image, green innovation and moderating role of corporate identity. Corporate Social Responsibility and Environmental Management. 2023; 31(1): 69-88. doi: 10.1002/csr.2553

35. Constantinescu D, Caraiania C, Lungua CI, et al. Environmental, social and governance disclosure associated with the firm value. Evidence from energy industry. Accounting and Management Information Systems. 2021, 20(1): 56-75.

36. Inamdar MM. Moderating role of ESG disclosures and its impact on firm financial performance. The Quarterly Review of Economics and Finance. 2024; 97: 101892. doi: 10.1016/j.qref.2024.101892

37. Veeravel V, Murugesan VP, Narayanamurthy V. Does ESG disclosure really influence the firm performance? Evidence from India. The Quarterly Review of Economics and Finance. 2024; 95: 193-202. doi: 10.1016/j.qref.2024.03.008

38. Lys T, Naughton JP, Wang C. Signaling through corporate accountability reporting. Journal of Accounting and Economics. 2015; 60(1): 56-72. doi: 10.1016/j.jacceco.2015.03.001

39. Yuan C, Xiao TS, Geng CX, Sheng Y. Digital Transformation and Division of Labor between Enterprises: Vertical Specialization or Vertical Integration. China Industrial Economics. 2021; (09): 137-155.

40. Liu Z, Yao YX, Zhang GS, Kuang HS. Firm's Digitalization, Specific Knowledge and Organizational Empowerment. China Industrial Economics. 2020; (09): 156-174.

41. Dobrajska M, Billinger S, Karim S. Delegation Within Hierarchies: How Information Processing and Knowledge Characteristics Influence the Allocation of Formal and Real Decision Authority. Organization Science. 2015; 26(3): 687-704. doi: 10.1287/orsc.2014.0954

42. Srivisal N, Jamprasert N, Sthienchoak J, et al. Environmental, social and governance and creditworthiness: Two contrary evidence from major Asian markets. Asian Academy of Management Journal of Accounting and Finance. 2021; 17(2): 161-187. doi: 10.21315/aamjaf2021.17.2.7

43. Nugroho DPD, Hsu Y, Hartauer C, et al. Investigating the Interconnection between Environmental, Social, and Governance (ESG), and Corporate Social Responsibility (CSR) Strategies: An Examination of the Influence on Consumer Behavior. Sustainability. 2024; 16(2): 614. doi: 10.3390/su16020614

44. Schwab K, Davis N. Shaping the future of the fourth industrial revolution. Crown Currency; 2018.

45. Fan J, Han F, Liu H. Challenges of Big Data analysis. National Science Review. 2014; 1(2): 293-314. doi: 10.1093/nsr/nwt032

46. Seddon JJJM, Currie WL. A model for unpacking big data analytics in high-frequency trading. Journal of Business Research. 2017; 70: 300-307. doi: 10.1016/j.jbusres.2016.08.003

47. Ahmed HMS, El-Halaby S, Albitar K. Board governance and audit report lag in the light of big data adoption: the case of Egypt[J]. International Journal of Accounting & Information Management, 2023, 31(1): 148-169.

48. Choi HY, Park J. Do data-driven CSR initiatives improve CSR performance? The importance of big data analytics capability. Technological Forecasting and Social Change. 2022; 182: 121802. doi: 10.1016/j.techfore.2022.121802

49. Sadasivam GS, Subrahmanyam M, Himachalam D, et al. Corporate governance fraud detection from annual reports using big data analytics. International Journal of Big Data Intelligence. 2016; 3(1): 51. doi: 10.1504/ijbdi.2016.073895

50. Cui X, Xu B, Razzaq A. Can Application of Artificial Intelligence in Enterprises Promote the Corporate Governance? Frontiers in Environmental Science. 2022; 10. doi: 10.3389/fenvs.2022.944467

51. Yu-tao Z, Jun-wen F, Xiu-lai W. Research on the Incentive Combination of Core Technical Personnel in the Hospital. In: Proceedings of the 2014 International Conference on Management of e-Commerce and e-Government.

52. Ma Y. Research on the Salary System Design of the Technical Personnel in State-owned Enterprises - Take Changqing Oilfield Exploration and Development Research Institute as an example. In: Proceedings of the 2017 International Conference on Innovations in Economic Management and Social Science (IEMSS 2017).

53. Cui X, Xu B, Razzaq A. Can application of artificial intelligence in enterprises promote the corporate governance? Frontiers in Environmental Science, 2022, 10: 944467.

54. Bag S, Gupta S, Kumar A, et al. An integrated artificial intelligence framework for knowledge creation and B2B marketing rational decision making for improving firm performance. Industrial Marketing Management. 2021; 92: 178-189. doi: 10.1016/j.indmarman.2020.12.001

55. Judijanto L, Asfahani A, Bakri A A, et al. AI-Supported Management through Leveraging Artificial Intelligence for Effective Decision Making. Journal of Artificial Intelligence and Development. 2022; 1(1): 59-68.

56. Wu W. The integration of blockchain technology and corporate governance-value, path and legal response. Secur. Mark. Her. 2021; 6.

57. Gao S, Liu J. The Impact of Artificial Intelligence on Enterprise Management Theory and its Response. Sci. Res; 2018.

58. Li W. Corporate Governance Reform in the Mobile Internet Era. Nankai Manag; 2014.

59. Zhang J. Intelligent Management: Theoretical Innovation and Technology Development. Fujian Forum Humanit. Soc. Sci; 2020. P. 10.

60. Horvitz EJ, Breese JS, Henrion M. Decision Theory in Expert Systems and Artificial Intelligence. Int. J. Approx. Reason. 1988; 2(3). doi:10.1016/ 0888-613x(88)90120-x

61. Doyle J, Ge W, McVay S. Determinants of weaknesses in internal control over financial reporting. Journal of Accounting and Economics. 2007; 44(1-2): 193-223. doi: 10.1016/j.jacceco.2006.10.003

62. Gu H, Bian F, Elahi E. Impact of Availability of Grandparents' Care on Birth in Working Women: An Empirical Analysis Based on Data of Chinese Dynamic Labour Force. Child. Youth Serv. Rev. 2021; 121: 105859. doi:10.1016/j. childyouth.2020.105859

63. Algabri HKM. Artificial Intelligence And ChatGPT. Academic Guru Publishing House. 2024.

64. Levantino FP. Generative and AI-powered oracles: “What will they say about you?” Computer Law & Security Review. 2023; 51: 105898. doi: 10.1016/j.clsr.2023.105898

65. Wu T, He S, Liu J, et al. A Brief Overview of ChatGPT: The History, Status Quo and Potential Future Development. IEEE/CAA Journal of Automatica Sinica. 2023; 10(5): 1122-1136. doi: 10.1109/jas.2023.123618

66. Kalla D, Smith N, Samaah F, & Kuraku S. Study and analysis of chat GPT and its impact on different fields of study. International journal of innovative science and research technology. 2023; 8(3).

67. Kamaruddin R I. ChatGPT and the Future of Management Consulting: Opportunities and Challenges Ahead [D]. Massachusetts Institute of Technology, 2023.

68. Rane N. Role and challenges of ChatGPT and similar generative artificial intelligence in business management [J]. Available at SSRN 4603227, 2023

69. Bravo de Dios, Y. Identification of texts generated by AI (ChatGPT). 2023. https://diposit.ub.edu/dspace/handle/2445/212020

70. Petrin M. The impact of AI and new technologies on corporate governance and regulation [J]. Singapore Journal of Legal Studies, 2024: 90-106.

71. Bharat S. Youth Organisation Appoints ChatGPT AI Bot As Its CEO, Calls It ‘Groundbreaking’, India Times. Available online: www.indiatimes.com/technology/news/ organisation-appoints-chatgpt-bot-as-its-ceo-592620.html (accessed on 9 February 2023)

72. Lusa. Portuguese entrepreneur creates viral company. The Portugal News. Available online: www.theportugalnews.com/news/2023-04-28/portuguese-entrepreneur-creates-viral-company/77089 (accessed on 28 April 2023)

73. Shiller RJ. Narrative economics: How stories go viral and drive major economic events. Princeton University Press; 2020.

74. Gentzkow M, Kelly B, Taddy M. Text as Data. Journal of Economic Literature. 2019; 57(3): 535-574. doi: 10.1257/jel.20181020

75. Li D, Shen W. Can Corporate Digitalization Promote Green Innovation? The Moderating Roles of Internal Control and Institutional Ownership. Sustainability. 2021; 13(24): 13983. doi: 10.3390/su132413983

76. Yermack D. Corporate governance and blockchains[J]. Review of finance, 2017, 21(1): 7-31.

77. Goldstein I, Spatt CS, Ye M. Big Data in Finance. The Review of Financial Studies. 2021; 34(7): 3213-3225. doi: 10.1093/rfs/hhab038

78. Yu J, Wang J, Moon T. Influence of digital transformation capability on operational performance[J]. Sustainability, 2022, 14(13): 7909.

79. Liu, Ran, et al. "Impacts of the digital transformation on the environment and sustainability." Issue Paper under Task 3; 2019.

80. Hermalin BE, Weisbach MS. Information Disclosure and Corporate Governance. The Journal of Finance. 2012; 67(1): 195-233. doi: 10.1111/j.1540-6261.2011.01710.

81. Liu X, Zhang C. Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production. 2017; 142: 1075-1084. doi: 10.1016/j.jclepro.2016.09.102

82. Wang HJ, Feng Q. The Evolution of Internet Finance: Academic Debate and Current Practice. Reform. 2015; (09):142-150.

83. Bloom N, Garicano L, Sadun R, et al. The Distinct Effects of Information Technology and Communication Technology on Firm Organization. Management Science. 2014; 60(12): 2859-2885. doi: 10.1287/mnsc.2014.2013

84. Lateef A, Omotayo FO. Information audit as an important tool in organizational management: A review of literature. Business Information Review. 2019; 36(1): 15-22. doi: 10.1177/0266382119831458

85. Jia W, Redigolo G, Shu S, et al. Can social media distort price discovery? Evidence from merger rumors. Journal of Accounting and Economics. 2020; 70(1): 101334. doi: 10.1016/j.jacceco.2020.101334

86. Zhu C. Big Data as a Governance Mechanism. The Review of Financial Studies. 2019; 32(5): 2021-2061. doi: 10.1093/rfs/hhy081

87. Brooks JM, Carroll JS, Beard JW. Dueling Stakeholders and Dual-Hatted Systems Engineers: Engineering Challenges, Capabilities, and Skills in Government Infrastructure Technology Projects. IEEE Transactions on Engineering Management. 2011; 58(3): 589-601. doi: 10.1109/tem.2010.2058858

88. Bridoux FM, Vishwanathan P. When Do Powerful Stakeholders Give Managers the Latitude to Balance All Stakeholders’ Interests? Business & Society. 2018; 59(2): 232-262. doi: 10.1177/0007650318775077

89. Li ZH, Tian WG, Gao P. Stock Market Liberalization, Corporate Governance and Market Fairness. Finance & Economics. 2020; 07: 13-26.

90. Sun K, Wang D, Xiao X. Internet scrutiny and corporate governance effect of social media[J]. J. Manag. World, 2020, 36: 106-132.

91. Cheng Q, Lo K. Insider Trading and Voluntary Disclosures. Journal of Accounting Research. 2006; 44(5): 815-848. doi: 10.1111/j.1475-679x.2006.00222.

92. Wang T, Chen C, & Jia X. Can digital transformation improve the quality of corporate information disclosure? SSRN; 2022.

93. Shu W, Cao J,Cao J, Wang FJ. Can enterprise informatization investment restrain surplus management?--empirical evidence from Chinese A-share listed firms. Journal of Soochow University (Philosophy & Social Science Edition). 2021; 42(05): 115-127.

94. Li C, Liu J, Liu Y, et al. Can digitalization empowerment improve the efficiency of corporate capital allocation? —Evidence from China. Economic Analysis and Policy. 2023; 80: 1794-1810. doi: 10.1016/j.eap.2023.11.014

95. Luo LB, Zhang B. Research on Internal Control in the Process of Enterprise Informatization. Accounting Research. 2008; (05): 69-75.

96. Adner R, Puranam P, Zhu F. What Is Different About Digital Strategy? From Quantitative to Qualitative Change. Strategy Science. 2019; 4(4): 253-261. doi: 10.1287/stsc.2019.0099

97. Chen HW, Wang JM, Yang DG. Audit committee transparency and executive perquisites_a quasi-natural experimental research based on the mandatory disclosure requirements of the Shanghai Stock Exchange. Auditing Research. 2020; (05): 57-66.

98. Peng MZ, Jin QL. Corporate Earnings Pressure and Supply Chain Real Earnings Management. Journal of Finance and Economics. 2021; 47(10): 156-169.

99. Luo JB, Xiong Y. Minority Shareholders "Online Voice" and Accounting Conservatism: Evidence from the Snowball Forum. Journal of Finance and Economics. 2021; 47(12): 150-165.

100. Du Y, Ma WL. Institutional Joint Ownership and Enterprise Total Factor Productivity. Journal of Shanghai University of Finance and Economics. 2021; 23(05): 81-95.

101. Yin HY, Xu XM, Quan XF, Zhang R. Pressure or monitor:institutional investor' cooperate site visits and surplus management.Journal of Soochow University(Philosophy & Social Science Edition). 2021; 42(05): 102-114.

102. Ye KT, Zang WJ. External Supervision and the Manipulation of Enterprise Expense Classification. Journal of Management World. 2016; (01): 121-128,138.

103. Loughran T, Mcdonald B. Measuring Readability in Financial Disclosures. The Journal of Finance. 2014; 69(4): 1643-1671. doi: 10.1111/jofi.12162

104. Li CT, Liu BB, & Zhou P. Short selling and corporate information disclosure: evidence from a quasi-nature experiment on margin trading in China. Financial Research. 2017; 9: 130-145.

105. Yu Jun, Sui Geng. How digital transformation affects sustainable business performance-findings from fsQCA. Soft Science. 2023; 1-17.

106. Guo B, Hu P, Lin J. The effect of digital infrastructure development on enterprise green transformation. International Review of Financial Analysis. 2024; 92: 103085. doi: 10.1016/j.irfa.2024.103085

107. Wang C, Guo J, Xu W, et al. The impact of digital transformation on corporate green governance under carbon peaking and neutrality goals: Evidence from China. PLOS ONE. 2024; 19(6): e0302432. doi: 10.1371/journal.pone.0302432

108. Liu X, Liu F, Ren X. Firms’ digitalization in manufacturing and the structure and direction of green innovation. Journal of Environmental Management. 2023; 335: 117525. doi: 10.1016/j.jenvman.2023.117525

109. Yang Y, Han J. Digital transformation, financing constraints, and corporate environmental, social, and governance performance. Corporate Social Responsibility and Environmental Management. 2023; 30(6): 3189-3202. doi: 10.1002/csr.2546

110. May G, Stahl B, Taisch M, et al. Energy management in manufacturing: From literature review to a conceptual framework. Journal of Cleaner Production. 2017; 167: 1464-1489. doi: 10.1016/j.jclepro.2016.10.191




DOI: https://doi.org/10.24294/fsj.v7i2.8081

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Yulong Sun, Juancan Guo

License URL: https://creativecommons.org/licenses/by/4.0/