Digital Transformation of Corporate Governance

Abstract

Modern trends in the economy's development are characterized by a significant influence of digital information technologies. Research of the digital economy as a separate industry, the determination of mutual influence with corporations, which are active participants and engines of the development of the digital economy, is becoming increasingly important. The spread of the concept of «digitalization» in society causes some confusion due to insufficient understanding of the essence of this concept and its difference with digital transformation, as well as their role in the digital economy. Digital transformation of corporate governance has its own specific features and characteristics associated with a large number of stakeholders and national characteristics of corporate governance.The article analyzes the functions of corporate governance at the enterprise. We determine the mechanism and the persons involved in the corporate governance process, focus on the peculiarities of corporate governance in the context of digital transformation of business, and outline the advantages and disadvantages of corporate governance digitalization. The stages for the implementation of digital technologies into the company’s corporate governance system are highlighted. The paper examines the features of corporate audit, assessment of systems, and the effectiveness of their interaction. The dilemma of using digital corporate governance complexes is considered: to buy a ready-to-use one or create own? Legal regulation of the functioning of electronic systems of corporate governance in the world’s leading companies is especially emphasized. The authors consider in detail the protection of corporate governance in the digital age and conclude about the possibility of corporate blackmail using digital technologies.

Digital transformation and supply chain efficiency improvement: An empirical study from a-share listed companies in China

“…Unlike existing literature that discusses the mechanisms of digital transformation on supply chain efficiency from perspectives of financing constraints, transaction costs, business efficiency, strategic layout [ 20 , 21 ], this study finds that digital transformation can enhance supply chain efficiency by promoting internal corporate governance and by fostering external market competition. In terms of improving governance, digital transformation, by providing real-time data and analytical tools, strengthens monitoring processes and risk management [ 49 ], thereby improving supply chain transparency and collaborative efficiency [ 46 ]. In the aspect of external market competition, digital platforms and tools such as CRM and supply chain management software, enable businesses to capture market demand and consumer preferences more accurately, increasing market sensitivity and customer satisfaction, and thus enhancing enterprise supply chain efficiency [ 55 ].…”

“…Driven by digitalization, corporate governance is no longer a static set of rules and regulations but a dynamic, data-driven management system that can quickly adapt to environmental changes, supporting continuous improvement and business innovation. Thus, digital transformation is a key catalyst in advancing modern corporate governance [ 49 , 50 ], providing necessary tools and capabilities for enterprises to maintain competitiveness in the complex and volatile global economic environment. For example, artificial intelligence can be used to analyze market trends and consumer behavior to guide strategic decisions [ 51 ]; blockchain technology can create a secure, immutable record in the supply chain, thereby increasing the transparency and traceability of transactions [ 52 ]; and cloud computing provides flexible resource allocation and data storage solutions, facilitating collaboration across departments and regions [ 53 ].…”