Research on the impacts and mechanisms of digital strategy on corporate innovation investment

Research on the impacts and mechanisms of digital strategy on corporate innovation investment

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This paper empirically examines the impacts and underlying mechanisms of a digital strategy, along with its four constituent indicators, on enterprise innovation investment.Utilizing a vast sample of companies listed on Chinese stock markets spanning from 2007 to 2022, the study constructs measurement indices for enterprise here digital strategies through rigorous text analysis.A multitude of analytical techniques, including panel fixed effects regression, panel mediation effects regression, panel moderation effects regression, and two-stage instrumental variable regression, are employed to investigate these impacts.

The findings reveal that a digital strategy exerts a significant and positive influence on firm innovation investment.Furthermore, the mechanism through which this impact occurs is elucidated: digital strategy fosters company innovation investment by augmenting investments in R&D human capital and digital infrastructure.Heterogeneity analysis underscores that the implementation of a digital strategy has a more pronounced effect on company innovation investment under conditions of high financial constraints.

Conversely, when institutional investors hold a larger proportion of shares, the impact of digital strategy implementation on company innovation investment is less pronounced.The robustness of these findings is confirmed through additional tests, such as two-stage instrumental variable regression, a panel random effects model, and substitution of the dependent variable.These results collectively offer a scientific rationale for companies to adopt digital nightstick twm-850xl strategies and enhance their innovation investment endeavors.