The status quo of digital transformation in China: A pilot study

Abstract

BACKGROUND: As the digital economy evolving as a nation-level strategy of China, firm decision-makers have shown increased interest in implementing digital transformation. However, they lack strategic guidance towards the realization of digital transformation. OBJECTIVE: This study aims to provide a holistic and comprehensive understanding of the status quo of Chinese firms’ digital transformation. METHODS: We fulfill this task by combining qualitative and quantitative methods. First, a conceptual model and an associated survey tool are developed based on an in-depth literature review and field practitioners’ opinions. The status quo of digital transformation is decomposed into 5 dimensions. Second, empirical survey data collected from 282 Chinese firms are analyzed and interpreted both in general and across industry types and ownerships. RESULTS: We find that the majority of Chinese firms reach a consensus on the strategic importance of digital transformation and agree on the importance of technological and human resources. In general, firms in the information technology sector scored higher in all five dimensions compared with firms in the manufacturing sector, and private-owned firms scored higher in all five dimensions than state-owned firms. CONCLUSIONS: This pilot study set a basis for the development of a maturity model of digital transformation and offers practical insights for Chinese firms to initiate and implement digital transformation projects.