THE INFLUENCING FACTORS OF ENTERPRISE DIGITAL TRANSFORMATION ON THE PERSPECTIVE OF INNOVATION —— AN EMPIRICAL STUDY OF CHINESE PHARMACEUTICAL ENTERPRISES

Abstract

Digital revolution has altered the business models of a number of industries. China’s pharmaceutical industry will be developed mostly via the digital transformation (DT) of pharmaceutical enterprises. Nevertheless, the current study on the digitization of Chinese pharmaceutical enterprises is deficient and trailing. Consequently, determining which key factors can influence the DT of pharmaceutical enterprises can support the government and enterprises in taking correct and effective steps to implement DT. The models of enterprise DT offered by previous scholars are imperfect and might be improved on the perspective of innovation. Formulating a solution for the DT of pharmaceutical enterprises requires determining the relationship between the influencing factors of DT and how to influence DT. Currently, Chinese pharmaceutical enterprises lack a set of effective solutions and guide ideas for its DT, which is an essential issue that must be addressed.

The objective of this study has four components. Identifying the key factors influencing the DT of Chinese pharmaceutical enterprises is the first step. Secondly, improving the theoretical model of the factors influencing the DT of Chinese pharmaceutical enterprises on the perspective of innovation and the TOE model. Thirdly, empirically demonstrating the impact and relationship between the factors influencing the DT of pharmaceutical enterprises. Fourthly, providing suggestions and effective solutions for relevant institutions (e.g. government departments and enterprises) in order to promote the development of Chinese pharmaceutical enterprises’ DT.

This study used the quantitative analysis method to conduct empirical research. The questionnaire was developed using the Likert scale. Online questionnaire, purposive sampling and snowball sampling were utilized to acquire data. For factor analysis (FA), reliability testing, regression analysis, and structural equation modeling (SEM) analysis, SPSS 25.0 and AMOS 23.0 were utilized.

This study’s empirical analysis yields four aspects for its findings. The external environment (e.g. customer needs, market competition, government policy, digital technology), the internal conditions (e.g. digital strategy, organization capability, leadership), digital innovation, company size, staff position, age, region, ownership type of enterprise, and situation of enterprise’s DT were identified as factors influencing the DT of pharmaceutical enterprises. Secondly, this study enhanced the theoretical model of the factors influencing the DT of pharmaceutical enterprises on the perspective of innovation and the TOE model. Thirdly, this study demonstrated the relationship between the influencing factors and their impacts on the DT of pharmaceutical enterprises. Particularly, digital innovation and internal conditions can mediate the impact of the external environment on DT, and company size can moderate the impact of the external environment on DT. Fourthly, this study proposed effective suggestions and paths for the Chinese government and pharmaceutical enterprises to promote the development of Chinese pharmaceutical enterprises’ DT.

This study enriched the research on the DT of Chinese pharmaceutical enterprises, and its findings can serve as a reference not only for the DT practice of Chinese pharmaceutical enterprises, but also for the DT practice of foreign pharmaceutical industries and other pharmaceutical enterprises. Therefore, it has significant theoretical and practical significance for the implementation of DT in pharmaceutical enterprises.

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