Digital transformation and profit growth: a configurational analysis of regional dynamics

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dc.contributor.authorSawang, Sukanlaya
dc.contributor.authorZhao, Jian
dc.contributor.authorXu, Zimu
dc.date.accessioned2025-04-01T08:48:20Z
dc.date.available2025-04-01T08:48:20Z
dc.date.freetoread2025-04-01
dc.date.issued2025
dc.date.pubOnline2025-03-21
dc.description.abstractThis study adopts Configuration Theory to explore how diverse combinations of regional factors contribute to profitability, emphasizing the principle of equifinality, which posits that multiple, equally effective configurations can lead to similar outcomes. This study examines the interplay of multiple factors—enterprise informatization, digital infrastructure, e-commerce, technological investment, innovation, hardware, and software—across four key themes: Digital Readiness and Technological Integration, Market and Economic Enablers, Innovation Capacity and Activity, and Foundational Artifacts and Resources. Using data from 31 provinces in China from 2015 to 2022, this study employs fuzzy-set Qualitative Comparative Analysis (fsQCA) to uncover pathways to regional profit growth. The study identifies five distinct configurations contributing to profit growth across China's provinces. In most configurations, e-commerce and technological investment emerge as central drivers. However, in less developed regions, profit growth relies more on improvements in digital infrastructure and hardware, with innovation and enterprise informatization playing a less significant role. The findings also reveal that profit growth requires addressing the weakest elements in the ecosystem—whether digital infrastructure, technological capabilities, or other factors. Strategies tailored to regional conditions must prioritize improving these weaker components to achieve sustained growth, as ignoring them can limit overall success.
dc.description.journalNameIEEE Transactions on Engineering Management
dc.format.extentpp. xx-xx
dc.identifier.citationSawang S, Zhao J, Xu Z. (2025) Digital transformation and profit growth: a configurational analysis of regional dynamics. IEEE Transactions on Engineering Management, Available online 21 March 2025
dc.identifier.eissn1558-0040
dc.identifier.elementsID567145
dc.identifier.issn0018-9391
dc.identifier.issueNoahead-of-print
dc.identifier.urihttps://doi.org/10.1109/tem.2025.3553198
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/23696
dc.identifier.volumeNoahead-of-print
dc.language.isoen
dc.publisherInstitute of Electrical and Electronics Engineers (IEEE)
dc.publisher.urihttps://ieeexplore.ieee.org/document/10935695
dc.rightsAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subject46 Information and Computing Sciences
dc.subject3503 Business Systems In Context
dc.subject35 Commerce, Management, Tourism and Services
dc.subjectBusiness & Management
dc.subject35 Commerce, management, tourism and services
dc.subject40 Engineering
dc.subject46 Information and computing sciences
dc.titleDigital transformation and profit growth: a configurational analysis of regional dynamics
dc.typeArticle
dcterms.dateAccepted2025-03-10

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