Tang, Tao (2025) The impact of digital transformation on firm's export : Mechanism, performance and behaviour. PhD thesis, Birkbeck, University of London.
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Abstract
This thesis explores how digital transformation affects firms’ exporting activities through three interrelated studies. Each study concentrates on a different but connected aspect: the underlying mechanisms that influence exports, the resulting changes in export performance, and the shifts in firms’ export behaviours. The research integrates theoretical modelling and empirical analysis, and comprehensively explains how digital transformation reshapes firms’ operational dynamics in international trade. In the first study, a general equilibrium model is developed to analyse how digital transformation affects firms’ capital and labour efficiencies, subsequently influencing their production costs and profitability. This theoretical framework bridges a gap by detailing how digital transformation impacts export performance and profits. Simulation analyses reveal that while digital transformation generally enhances firm profits, the optimal transformation strategy is not universal and is based on market competition. In low-competition markets, excessive digital transformation may not be advantageous, whereas in highly competitive markets, a moderate level of digital transformation could be the least favourable strategy. The second study of the thesis introduces a novel measurement method for digital transformation based on text analysis of firm-level data. The empirical research employs the Firm-Specific Advantages (FSAs) theory and an extended heterogeneous firm model. The results demonstrate a significant positive effect of digital transformation on export performance, primarily through improvements in capital and labour efficiencies. Mediation tests indicate that capital efficiency serves as a robust mechanism, while labour efficiency’s impact is more pronounced in firms with initially low labour efficiency. Furthermore, when there is an imbalance in the development of capital and labour efficiencies, directing digital transformation efforts toward the weaker efficiency yields more significant benefits, supporting the optimal transformation allocation theory proposed earlier. The last study separately distinguishes between management and production digital transformations to examine their effects on firms’ export diversification and concentration. Empirical findings show that management digital transformation significantly increases export diversification while reducing export concentration. In contrast, production digital transformation enhances export diversification but has no significant effect on export concentration. These results suggest that different types of digital transformation act as unique resources influencing firms’ export behaviours differently. The study underscores the importance for firms to select digital transformation pathways that align with their specific needs and for policymakers to guide the direction of digital transformation, thereby effectively shaping firms’ export strategies. This thesis contributes to the literature by integrating theoretical and empirical analyses to elucidate how digital transformation affects firms’ export performance and behaviours. It highlights the necessity of balanced efficiency improvements and tailored digital transformation approaches, providing practical insights for firms aiming to maximise benefits in the global market. The findings offer valuable implications for corporate decision-makers and policymakers in enhancing global competitiveness through strategic digital transformation.
Metadata
| Item Type: | Thesis |
|---|---|
| Copyright Holders: | The copyright of this thesis rests with the author, who asserts his/her right to be known as such according to the Copyright Designs and Patents Act 1988. No dealing with the thesis contrary to the copyright or moral rights of the author is permitted. |
| Depositing User: | Acquisitions And Metadata |
| Date Deposited: | 19 May 2025 14:43 |
| Last Modified: | 05 Sep 2025 08:41 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/55615 |
| DOI: | https://doi.org/10.18743/PUB.00055615 |
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