Can Information Consumption Promote the Digital Transformation of Enterprises? Empirical Evidence from China

Information consumption (IC) has emerged as a critical driver of the digital transformation of enterprises (DTE) and sustainable corporate development, garnering significant attention in recent years. Nevertheless, research focused on the role of IC as a driving factor of the DTE remains relatively scarce. The information consumption pilot policy (ICPP), a key initiative aiming to foster the consumption of information products and services, plays an essential role in refining consumption systems and mechanisms, enhancing demand-side management, and facilitating the DTE. Using data from Chinese A-share listed companies, this study leverages the ICPP as a quasi-natural experiment and employs a difference-in-differences (DID) model to evaluate the effects and underlying mechanisms of IC on the DTE, with the objective of elucidating how IC drives the DTE. The findings indicate that IC significantly accelerates the DTE, a conclusion that remains robust across multiple validation tests. Further investigation reveals that IC has a stronger impact on digital transformation in non-state-owned enterprises, capital-intensive enterprises, technology-intensive enterprises, and growth-stage enterprises than in state-owned enterprises, labor-intensive enterprises, and enterprises in the maturity or decline stage. Similarly, IC demonstrates a more substantial influence on digital transformation in enterprises situated in southern cities, large-scale cities, and non-resource-dependent cities than in enterprises located in northern cities, small-scale cities, and resource-dependent cities. Mechanism analyses suggest that IC primarily drives the DTE through pathways such as technological innovation, the expansion of household consumption, and the advancement of financial digitization. Additionally, intellectual property protection is found to significantly enhance the impact of IC on the DTE. By investigating the drivers of the DTE from the perspective of digital consumption, this study not only provides a theoretical foundation for the advancement of China's digital economy but also offers practical guidance and insights for fostering the DTE on a global scale.