Effect of digital transformation on labor income share in manufacturing enterprises: insights from technological innovation and industry-university-research collaborations

PurposeThis study investigates the relationships among digital transformation, technological innovation, industry-university-research collaborations and labor income share in manufacturing firms.Design/methodology/approachThe relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.FindingsThe results indicate that digital transformation has a positive effect on manufacturing companies' labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry-university-research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.Originality/valueThis study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.