Digital Transformation of Value Chains and CSR Performance

Abstract

With the accelerated evolution of the digital transformation of economic activities, the digitalization of the different parts of the value chain, such as manufacturing, marketing, and management, has increased significantly, thereby changing the form of organizational production management while affecting how corporate social responsibility (CSR) is achieved. Therefore, in this study, we examined the relationship between the digital transformation of value chains and CSR performance and the moderating role of property ownership and market dependence. The results show that the digital transformation of value chains can improve CSR performance. When the three types of digital transformation are conducted at the same time, compared with digital manufacturing transformation and digital marketing transformation, digital management transformation has a greater impact on CSR performance. Non-state-owned enterprises and enterprises with higher market dependency show greater improvement in their CSR performance than state-owned enterprises and enterprises with lower market dependency as a result of the digital transformation of value chains. Furthermore, we found a certain degree of value mismatch between the digital transformation of the different value chain links of enterprises and the different dimensions of social responsibility. Specifically, the digital transformations of manufacturing, marketing, and management activities only exert a significant impact on shareholder responsibility, public responsibility, and shareholder and employee responsibility, respectively. This result indicates that the digital transformation of the entire value chain needs to be further optimized and integrated to achieve social responsibility values that match the value chain. This study not only helps enterprises identify the shortcomings in the digital transformation of the value chain but also provides development ideas for enterprises to realize the two-wheel drive of business value and social value through the digital transformation of the whole value chain.

Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity

“…Hence, corporate social responsibility (CSR) is also an indirect focus of the present study, not least, because the underlying phenomenon consists of going beyond shareholders’ interest to pay attention to all stakeholders. Accordingly, digital transformation is closely connected to CSR because companies are also motivated to promote inclusive development by means of digital technologies (Na et al , 2022).…”

The impact of digital supply chain announcements disclosing corporate social responsibility information on stock market value

“…Second, China is vigorously developing its digital economy. According to the China Academy of Information and Communication Research, China's digital economy reached US$45.5 trillion in 2021, accounting for 39.8% of GDP, making it the largest digital economy in developing countries (Na et al, 2022). The study result is expected to provide implications for the development of digital supply chains in developing countries.…”

“…Third, studies on CSR and digital transformation using empirical methods have mostly focused on their interactions. Na et al (2022) used an econometric regression model to examine the relationship between digital IMDS 124,2 transformation of firms and CSR performance and the moderating role of property ownership and market dependence. Cardinali and De Giovanni (2022) investigated the relationship between digital technology and CSR through interviews.…”

“…The application of digital technologies advances the digitalization of business processes in R&D, production, procurement, marketing and management (Bijmolt et al, 2021), driving the development of deep vertical digitalization in the firm. In business operation practice, the degree of digital transformation varies across business segments, but the digital development of multiple business processes implies greater digital collaboration within the firm and deeper digital interaction with partners (Na et al, 2022). We define the depth of supply chain digitalization as the diversity degree of business processes that firms change through digital transformation (Zhang et al, 2016).…”

“…In the context of digital supply chains' development, the traditional focus and practice of corporate social responsibility (CSR) has changed (Lobschat et al ., 2021), and firms are facing challenges to fulfill their responsibilities. First, in general, there may be a “competition for resources” between digital transformation of supply chains and CSR strategy implementation (Na et al ., 2022). Digital transformation resources are heavily invested and CSR investments do not yield significant benefits in the short term, making it difficult for firms to be proactive when the resources are limited and creating a “crowding out” effect.…”