The Impact of Digital Transformation on Financial Performance and Green Development: Evidence from Chinese Manufacturing Companies

Mohammad Alzyod, Ling Yi, Mahmoud Al-Sayed, Mahmoud Al-Sayed

2025

Abstract

Digital transformation, driven by advancements in Artificial Intelligence (AI), Big Data, and the Internet of Things (IoT), has become essential for modern manufacturing companies in reshaping their manufacturing processes and business strategies. While prior research has largely focused on the financial benefits of digital transformation, its environmental implications remain underexplored. This study examines the dual impact of digital transformation on financial performance and green development, using panel data from Chinese A-share listed manufacturing firms between 2010 and 2021. Applying a multiple regression model, the analysis integrates Schumpeterian innovation theory and the Resource-Based View (RBV) to provide a comprehensive understanding of how digitalisation influences both economic and environmental outcomes. The findings reveal that digital transformation significantly enhances financial performance while also promoting sustainable business practices. By bridging the gap in existing literature, this study offers new insights into the broader value of digital transformation, providing practical implications for corporate decision-makers and policymakers seeking to align financial growth with sustainability objectives.

Paper Citation

in Harvard Style

Alzyod M., Yi L. and Al-Sayed M. (2025). The Impact of Digital Transformation on Financial Performance and Green Development: Evidence from Chinese Manufacturing Companies. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 259-266. DOI: 10.5220/0013470200003956

in Bibtex Style

@conference{femib25,
author={Mohammad Alzyod and Ling Yi and Mahmoud Al-Sayed},
title={The Impact of Digital Transformation on Financial Performance and Green Development: Evidence from Chinese Manufacturing Companies},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={259-266},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013470200003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - The Impact of Digital Transformation on Financial Performance and Green Development: Evidence from Chinese Manufacturing Companies
SN - 978-989-758-748-1
AU - Alzyod M.
AU - Yi L.
AU - Al-Sayed M.
PY - 2025
SP - 259
EP - 266
DO - 10.5220/0013470200003956
PB - SciTePress