The effect of digital transformation on real economy enterprises? total factor productivity

The digital transformation of real economy enterprises is essential for optimizing resource allo-cation, improving operation efficiency, and realizing high-quality innovation and development. Using the data of listed companies from 2007 to 2020, this study empirically explores the impact mechanism of the advancement of real economy enterprises' digital transformation on total factor productivity (TFP). The results reveal a positive nonlinear U-shaped relationship, demonstrating that real economy enterprises' TFP is reduced at the initial stage of digital transformation, then improves after exceeding a critical threshold value. Real economy enterprises' digital trans-formation impacts TFP through working capital turnover rate, human capital structure, and financing constraints. The heterogeneity analysis results indicate that the impact of advancing real economy enterprises' digital transformation on TFP is not affected by the size of enterprises' assets or enterprises' ownership. The research results provide direct evidence of the effect of real economy enterprises' digital transformation on TFP at the microlevel, providing policy insights for the high-quality development of real economy enterprises.