arbiter
JournalsAccount

Threat or opportunity: product market competition and enterprise digital transformation

Liguang Zhang et al.

China Journal of Accounting Studies2025https://doi.org/10.1080/21697213.2025.2479740article
AJG 1ABDC B
Weight
0.50

Abstract

In this paper, we examine the impact of product market competition on enterprise digital transformation. We extracted the product description texts from the annual reports of China’s listed companies from 2012 to 2021，and measured product market competition at the firm－year level by using the computational linguistics method. Our analysis shows that product market competition plays a positive role in the enterprises digital transformation. The mechanism analysis shows that product market competition can exert both escape-competition effect and governance effect, thus prompting enterprises to undergo digital transformation. The heterogeneity analysis shows that this relationship is affected by production efficiency, factor intensities, financial constraints, and analyst coverage. The analysis of economic consequences shows that external pressure from product market competition improves future firm performance. Overall, this study enriches the literature related to the drivers of enterprises digital transformation from the perspective of market competition.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1080/21697213.2025.2479740

Or copy a formatted citation

@article{liguang2025,
  title        = {{Threat or opportunity: product market competition and enterprise digital transformation}},
  author       = {Liguang Zhang et al.},
  journal      = {China Journal of Accounting Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1080/21697213.2025.2479740},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Threat or opportunity: product market competition and enterprise digital transformation

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.