EXPLORATION OF DIGITAL

TRANSFORMATION MECHANISM AND

DEVELOPMENT LEVEL OF ENTERPRISE

ECONOMIC MANAGEMENT

Yong-Cai*

• Hunan College of Finance and Economics, Changsha, Hunan, 410000, China

•313486070@qq.com

Reception: 16 February 2024 | Acceptance: 10 April 2024 | Publication: 25 May 2024

Suggested citation:

Cai, Y. (2024). Exploration of digital transformation mechanism and

development level of enterprise economic management. 3C Empresa.

Investigación y pensamiento crítico, 13(1), 232-250. https://doi.org/

10.17993/3cemp.2024.130153.232-250

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ABSTRACT

This paper is based on the digital economy, the traditional enterprise economic

management of digital transformation. Utilizing supply chain technology to establish

cooperation channels to provide customers with quality services to complete the

transformation of management mode. Integrate information technology in the

production process to improve the quality of the enterprise's products, improve the

enterprise's sales model to achieve the purpose of performance transformation. The

impact of digital technology on the economic transformation of enterprises is

examined by constructing a quality model, and the stability of the economic quality

development of enterprises is examined by regression analysis. The results show that

the growth rate of operating income of digital enterprises is more than 50%, the

market share of digital products has reached 33.8%, and the digital economic

variables are significantly greater than 0, indicating that the digital transformation of

the enterprise's economic management can improve the sustainable competitiveness

of the enterprise and promote the development of the enterprise's economic quality.

KEYWORDS

Digital transformation; economic management; supply chain technology; information

technology; regression analysis

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INDEX

ABSTRACT .....................................................................................................................2

KEYWORDS ...................................................................................................................2

1. INTRODUCTION .......................................................................................................4

2. LITERATURE REVIEW .............................................................................................5

3. THE ROLE OF DIGITAL TECHNOLOGY IN THE ECONOMIC MANAGEMENT OF

ENTERPRISES .........................................................................................................6

3.1. Enterprise digital transformation path ................................................................6

3.2. Digital production management .........................................................................7

3.3. Production performance transformation .............................................................7

4. CONSTRUCTING A QUALITY MODEL FOR THE TRANSFORMATION OF THE

ENTERPRISE'S ECONOMIC MANAGEMENT ........................................................8

4.1. Quality modeling ................................................................................................8

4.2. Regression models ............................................................................................9

5. EXAMINATION OF THE LEVEL OF DEVELOPMENT OF THE ENTERPRISE'S

DIGITAL TRANSFORMATION ECONOMY ............................................................10

5.1. Analysis of the impact of the digital economy on business transformation ......10

5.2. Analysis of the economic efficiency of digital enterprises ................................12

5.2.1. Profitability analysis ...................................................................................12

5.2.2. Market share of digital products ................................................................14

5.2.3. Digital Products Operating Revenue Percentage ......................................15

5.3. Robustness Tests .............................................................................................16

6. CONCLUSION ........................................................................................................17

7. DISCUSSION ..........................................................................................................17

REFERENCES ..............................................................................................................18

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1. INTRODUCTION

With the rapid growth of the digital economy and the deep integration with the real

economy, the digital transformation of enterprise management has increasingly

become a focal issue in the academic world. Enterprise management digitalization, as

a key process of enterprise digital transformation, generally refers to the systematic

reshaping of enterprise structure, management mode, operation mechanism and

production process through the introduction of through technology in the existing

enterprise management structure [1-2]. Management of digital investment can

enhance the sustainable competitiveness of enterprises, help to reduce enterprise

costs, improve enterprise output and performance. However, the overall strength of

the economy in some regions is still not strong, especially the low level of enterprise

digitization, weak high-tech industries, and the development of industrial clusters is

not obvious [3]. There are also problems within each enterprise such as financing

difficulties, informal enterprise management, and insufficient advantages in talent

introduction. This is due to the small scale and slow development of enterprises,

largely caused by the enterprise itself, especially the backwardness of the enterprise

management concept. A large number of small and medium-sized enterprises still use

family-style enterprise management mode, and the core management team often has

rich production experience, but lacks advanced enterprise management experience,

or does not have the ability to manage large enterprises [4-5]. Therefore, it is

important to utilize network and information platforms centered on communication

technology and intelligent control technology to manage logistics and production

processes, which in turn improves the efficiency of factories and enhances their

competitive advantages. Eliminate various barriers and make full use of new digital

technologies to upgrade traditional production and operation, so as to realize the

sustainable development of enterprises [6].

This paper focuses on the digital features to build the configuration and study the

digital transformation path of the enterprise network. First of all, through the supply

chain technology to establish a rapid channel of cooperation and communication with

suppliers and distributors, at the same time, the digital technology developed by

information technology enterprises into the production process, product content, and

improve the enterprise's sales model to achieve high-quality development. Then the

impact of the digital economy on the transformation of enterprises is reflected by

constructing an economic quality model, and finally the economic development level

of digital enterprises is verified through the analysis of the impact of the digital

economy on the transformation of enterprises, the analysis of the economic benefits

of digital enterprises, and the robustness test. It is proved that the digital

transformation and upgrading of the enterprise improves the overall production level

of the enterprise, reduces the unit cost and brings more profits.

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2. LITERATURE REVIEW

Chen, Q analyzed blockchain technology and smart contracts with future supply

chain management applications based on the development of the marine economy

through an explanatory framework model. The model examines the structure and

process of marine supply chain risk mechanisms, provides a scientific framework for

marine supply chain risk control, and makes corresponding recommendations for

reducing and monitoring marine supply chain risks [7]. Vasin, S et al. considered

decision-making models and methods for enterprise competitiveness management

from the perspective of benchmarking, and a competitive interaction model in the form

of coupled Vanderbilt equation system with time lag introduced was successfully

tested in radio physics. The methodology uses the enterprise's own competitive

advantages to achieve the highest score of actual competitiveness of an industry in

order to improve the quality of produced products, reduce production costs and

increase labor efficiency [8]. The subject of the research Shevchenko, A is the

prospects of development of the forest sector and rural areas in the digital economy,

with the goal of developing theoretical prescriptions and practical recommendations

for the improvement of interactions. Methodological approaches of general scientific

and specific nature were used, targeted actions were taken to provide a new system

of scientific support for the development of the forest sector and rural areas, which

contributes to the improvement of the quality of life in rural areas [9]. Subaeva, A. et

al. in order to form a modern system of training of personnel in agriculture in the digital

economy, designed a cluster of advanced training and training of personnel in

conditions of digital transformation of agriculture model of a network platform that

adapts the educational potential of the curriculum to specific requirements and the

formation of digital competencies; an effective system of end-to-end and continuous

acquisition of new competencies in the digital economy by bringing together

representatives of science, government and business in a single digital space [10].

Klymchuk, M presents a model of development of recursive convergence approach

to the formation of business development strategies based on the digital economy.

The model of formation of the enterprise development strategy taking into account the

digital economy is proposed, and the problems of management of investments in the

digital transformation of the enterprise are studied. It allows to distinguish the

directions of development of digital technologies, to incorporate them into the

advantages of productive business activity of the enterprise and to provide the basis

of theoretical tools for the study of the problems of investment in digital processes

[11]. Batova, M. Development of methodological and practical tools for effective digital

transformation of high-tech enterprises develops the concept of transformation of the

enterprise by means of innovative modernization, affecting the product, technological

operations, as well as organizational and production structural changes. Development

of an organizational design methodology for flexible robotic structures and a model for

determining the flexibility and productivity parameters of robotic structures [12].

Rossini, M evaluates the transformation models of companies in the digital economy

by studying several manufacturing companies and analyzing the insights from the

cases to determine the direction of transformation based on the leanness and maturity

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of the companies. The results of the study show that the introduction of Industry 4.0

technology is an effective way to improve the leanness of companies, and that this

technology allows the integration of traditional manufacturing companies with digital

technology, thus promoting the development of the company [13]. Charalampidis, I. et

al. develop a macro-economic regional model, where the new manufacturing

technologies and infrastructures are evaluated to achieve a dynamic and fully

endogenous agglomeration-dispersion mechanism. The model considers national

economic trends as boundary conditions and simulates the impact on the regional

economy, inducing macroeconomic changes in the national and regional economy in

terms of activity and employment [14].

3. THE ROLE OF DIGITAL TECHNOLOGY IN THE

ECONOMIC MANAGEMENT OF ENTERPRISES

3.1. ENTERPRISE DIGITAL TRANSFORMATION PATH

Enterprises form enterprise networks due to the connection between them, and the

way of node connection not only affects all kinds of behaviors between nodes, but

also determines the digital transformation path of enterprise networks [15]. The era of

the digital economy requires nodes to carry out digital cooperation at the enterprise

network level, and the cooperative linkage makes digital resources further integrated

into the enterprise network, which then forms the basis of network digital

transformation, that is to say, the enterprise network empowers nodes to digitize

through relational linkage, and the network linkage drives the digital transformation of

the enterprise network from the micro level [16-17]. Figure 1 shows the path diagram

of enterprise digital transformation, considering the internal and external factors of the

process of enterprise network digital transformation, selecting a reasonable and

representative nucleated enterprise network as a sample, grouping and constructing

around the digital features, researching the enterprise network digital transformation

path, and further exploring the basic logic and evolution characteristics of the

enterprise network digital transformation in the context of the digital economy.

Figure 1. Roadmap for enterprise digital transformation

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3.2. DIGITAL PRODUCTION MANAGEMENT

In order to seize the opportunity of the development of the digital economy,

enterprises make every effort to promote the digital transformation of the management

mode of design and research and development, production services and other links.

Under the background of digital economy, enterprise management tends to be more

grid mode, and the management transformation of traditional manufacturing

enterprises can be carried out through the application of digital technology in

enterprise production and manufacturing, sales and logistics, product innovation and

other links [18-19]. In this way, enterprises can improve customer experience,

innovate value propositions, and enhance organizational effectiveness. Figure 2

shows the enterprise production digital management process, combined with the

background characteristics of the digital economy era, in which the supply chain

management, the establishment of rapid cooperation and communication channels

with suppliers and distributors, supply chain oriented to the market point of view of the

entire business activities of the planning, design and implementation of the overall

structure. Production and R&D, the key is to optimize the production process, reduce

production costs and improve production efficiency. Customer relationship

management, the rapid development of data and its related technology in the era of

digital economy, the use of data and information to improve customer relationship

management has become the key. Data information plays an important role in

providing customers with quality services and establishing good relationships, etc.

The effective use of data information to improve customer relations has become the

key to the digital transformation of enterprise management.

Figure 2. Enterprise production digital management process

3.3. PRODUCTION PERFORMANCE TRANSFORMATION

In the era of digital economy, with the continuous change of production technology

and sales technology, enterprises are forced to adapt to the new market demand,

maintain and improve the competitiveness of enterprises. Small and medium-sized

manufacturing enterprises do not have talent and capital support, and lack

advantages in active development and innovation, but digital technology provides a

channel for indirect innovation of enterprises [20]. The integration of digital economy

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technologies with traditional enterprises mainly enhances the transformational

performance of enterprises through three channels, namely, promoting indirect

innovation, reducing the cost of sales, and improving production efficiency [21]. Figure

3 shows the schematic diagram of the digital economy to promote the transformation

of enterprise performance, the enterprise can integrate the digital technology

developed by information technology enterprises into their production process and

product content to improve the quality of enterprise products, improve the sales model

of the enterprise, and realize the transformation and upgrading and high-quality

development of the enterprise. The use of big data, cloud computing and other

technologies to effectively combine data flow, capital flow and talent flow can enable

enterprises to more accurately grasp market dynamics and customer demand, meet

more complex personalized needs, constantly change their product characteristics

and sales positioning, and promote the enterprise can be more active, proactive,

scientifically involved in product innovation, sales innovation and organizational

innovation, to form a diversified, market-oriented and networked Precision innovation

system. The use of digital economy technology by enterprises can make production

more intelligent, management more data-oriented and sales more humanized, realize

the fundamental transformation of enterprises in production, organization and sales

mode, promote the transformation and upgrading of enterprises, and also improve the

operating efficiency of enterprises.

Figure 3. Schematic diagram of enterprise performance transformation

4. CONSTRUCTING A QUALITY MODEL FOR THE

TRANSFORMATION OF THE ENTERPRISE'S

ECONOMIC MANAGEMENT

4.1. QUALITY MODELING

In order to test the impact of the application of digital technology on the economic

transformation of enterprises and the path of transformation, the following model is

established for observation under the condition of limited data indicators:

(1)

per it =C+α1×DEit +∑γj×

control j

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(2)

(3)

In the above equation, is the transformation performance of the nd

enterprise years, is the digital economy application status of the th enterprise

years, is the control variable, is the constant term. is the th enterprise

years of potential transformation path variables, equations (2), (3) are used to

observe in the equation (1) holds on the basis of variables whether the SME digital

economy application for enterprise transformation and upgrading of the intermediate

path.

Table 1 shows the content definition of each indicator; enterprise economic

transformation is measured by return on total assets and operating profit margin, and

the control variables include enterprise size and debt ratio. The intermediate path

variables include gross profit margin, which measures the improvement of the

enterprise's product competitiveness, sales expense ratio, which measures the cost

reduction, and labor productivity, which measures the production efficiency. The digital

economy is expressed using the number of types of digital economy technologies

applied by the firm in the current year.

Table 1. Definitions of each indicator

4.2. REGRESSION MODELS

Considering the impact of the timeliness and lag of the digital transformation policy

on the productivity of enterprises, this paper conducts the test of the impact of time

policy on digital transformation. In order to ensure the robustness of the test results,

construct a dummy variable of whether the enterprise carries out digital

=C+β

×DE

+∑

control j,i

per

=C+β

×Z

+∑

control j,it

+ε

per it

DEit

control j,i

Zit

Variable type Variable Variable symbol Metrics

Explanatory

variables

Business

performance

roa Return on total assets

pro Operating margin

Explanatory

variables

Digital economy DE

The number of types of

digital economy applied

Mediation

variables

Product quality

improvement

mrate

Gross profit margin of the

enterprise

The cost of sales

decreased

cost Selling expense ratio

Productivity productivity Labour productivity

Control variables

The size of the

enterprise

size

The natural logarithm of total

assets

Financial leverage lev Debt-to-asset ratio

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transformation, assign a value of 1 if the enterprise carries out digital transformation,

otherwise assign a value of 0 to measure the enterprise's digital transformation, and

construct the following regression model:

(4)

where denotes the economic restatement, denotes the degree of

digital transformation of firms, and denotes different firms. denotes different years,

is the random error term, is the constant term, and is the regression coefficient

of the variable to be estimated.

5. EXAMINATION OF THE LEVEL OF DEVELOPMENT

OF THE ENTERPRISE'S DIGITAL TRANSFORMATION

ECONOMY

5.1. ANALYSIS OF THE IMPACT OF THE DIGITAL ECONOMY

ON BUSINESS TRANSFORMATION

In order to better mention the mechanism of the impact of digital technology on the

transformation of the economic management of enterprises, this paper reflects the

level of economic development of the company by constructing a quality model.

Therefore, this paper shows the simple statistical results of each variable by analyzing

the financial information of enterprises in a region after digital transformation. Table 2

shows the statistical results of each variable, and the average return on total assets of

the sample companies is 2.7%, and the average net operating profit margin is 5.5%.

Of the digital economy applications, the average number of overall digital economy

applications was 1.478. Of the three potential transformation paths, the average gross

profit margin was 35.8%, the average sales expense ratio was 10.1%, and the natural

logarithm of the average labor productivity was 13.266. Of the four control variables,

the natural logarithm of the total assets of the firms averaged 18.403, and the gearing

ratio averaged 26.2%. Enterprise economic management digital transformation type in

the specific guidance of digital technology, make full use of the through the network,

blockchain and artificial intelligence and other technologies, through the digital

technology and management of business intertwined, but to promote the enterprise to

create greater value.

Logit( restate

i,t

)=α

+β

dcg

i,t

+β

roa +β

pro +β

DE +β

mrate +β

cost

+β7 productivity +β8 size +β9lev +∑ ind +∑year +εit

restate i,t

dcgi,t

εit

α0

β1

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Table 2. Statistical results of each variable

Digital transformation of business management is positively correlated with high

quality development of business economy. However, since total factor productivity is

affected by many factors, further regression checks need to be done. Fixed effects

were chosen by determining the model and period effects were controlled. Table 3

shows the results of the impact regression analysis, in which the first three columns

are proxied by the return on total assets for enterprise performance, and the results

show that the digital economy variable is significantly greater than 0 at 1% probability,

and the positive effect is stronger. It shows that digital economy application can

promote the transformation performance of SMEs through cost reduction and quality

improvement, so enterprises should make full use of the advantages of the digital

economy, increase the investment in R&D, reduce the investment in physical

advertisements, make more use of the digital economy technology to promote the

commodities, and utilize the cutting-edge production technology to create the products

with higher efficiency and more popular in the market, in order to stimulate the

creativity of the enterprise and enhance the competitiveness of the enterprise in the

market.

Variable Number of

observations Mean Standard

deviation Minimum Maximum

Business

performance 427 27 85 -0.45 383

Digital economy 427 1.478 1.277 0 5.000

Product quality

improvement 427 358 190 -243 901

The cost of sales

decreased 427 101 106 0 722

Productivity 427 13.266 578 10.452 16.741

The size of the

enterprise 427 18.403 633 15.545 20.008

Financial leverage 427 262 226 10 1.645

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Table 3. Affects the results of regression analysis

5.2. ANALYSIS OF THE ECONOMIC EFFICIENCY OF DIGITAL

ENTERPRISES

5.2.1. PROFITABILITY ANALYSIS

The monitoring and management of the overall operation process of a digital

enterprise can improve the information transfer efficiency and synergy between

various departments, reduce related costs and improve the operational efficiency of

the enterprise. This paper selects an enterprise A for digital transformation in 2013,

and analyzes the economic development level of the enterprise after transformation.

Figure 4 shows the changes in operating profit after the transformation of the

enterprise, compared with the pre-transformation, the gross profit margin of enterprise

A has been accelerating significantly since 2013 and has been maintaining a good

trend of steady increase. There was a turning point in 2017, when the year-on-year

growth rates of both revenue and costs for Enterprise A exceeded 50%, but the

increase in operating costs was about 4.8% higher than the increase in revenue. The

trend of net profit margin throughout the interval is basically the same as that of gross

profit margin, and in 2017, on the basis of a very small gap between the enterprise's

sales revenues and costs, there was a certain increase in period expenses, especially

selling expenses, which led to a smaller rise in the enterprise's net profit, which

increased by 17.33% year-on-year, ultimately causing a year-on-year decrease in

Enterprise A's net profit margin in 2017. The operating profit margin also shows the

same trend of change as the previous two indicators, and because it does not take

into account non-operating income and expenditure as well as corporate income tax,

the volatility of this indicator was reduced in 2017. It shows that the digital

environment has guided SMEs to realize the necessity and urgency of enterprise

Variable

Return on

total assets

Operating

margin

(1) (2) (3) (4) (5) (6)

Digital

economy

0.078***

(0.010)

0.198***

(0.050)

The size of

the

enterprise

0.092***

(0.017)

0.096***

(0.018)

0.086***

(0.017)

0.311***

(0.082)

0.323***

(0.083)

0.298***

(0.083)

Financial

leverage

-0.302***

(0.043)

-0.315***

(0.046)

-0.326***

(0.003)

-0.108***

(0.207)

-1.139***

(0.211)

-1.172***

(0.207)

Constant

terms

-0.634***

(0.339)

-1.721***

(0.360)

-1.488***

(0.344)

-5.550***

(1.630)

-5.778***

(1.659)

-5.190***

(1.643)

Period Control Control Control Control Control Control

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digital transformation and upgrading, which has improved the overall production level,

reduced the unit cost, and brought more profits.

Figure 4. Changes in operating profit after the transformation

After vertically comparing the performance of Enterprise A before and after digital

transformation, and based on the four different perspectives of profitability, operations,

debt service and growth, the performance of the four aspects of the ability of

Enterprise A is compared with the average of Enterprises B and C and the industry,

and the two enterprises did not carry out the digital transformation, and attempts to

further validate whether the performance of Enterprise A has been effectively

improved after digitization through cross-sectional comparative analysis. Effectively

improved after digitization. Figure 5 shows the results of the average net interest rate

comparison analysis, first of all, through the comparison of the net interest rate can be

seen that the net interest rate level of enterprise A is above the industry average in the

whole interval, and the net interest rate in each year is higher than that of enterprise

C, and the whole shows a good growth trend. However, the net interest rate level of

Enterprise A is lower than that of Enterprise B throughout the interval, and the gap

gradually increases from 2015 until 2018 when the gap starts to shorten from. Since

2017, the average net interest rate of enterprise B has continued to decrease from

15.18% to 13.25%, while enterprise A has continued to increase from 7.73% to 9.68%,

and the continuous increase in the scale of period expenses has directly led to the

lower level of net interest rate of enterprise A than enterprise B, which promotes the

creation and increase of the gap between the two enterprises' net interest rates. It

shows that the digital transformation of enterprises helps to improve the productivity of

enterprises, promotes the automation and intelligence of production through digital

technology, and enables workers to get rid of low-end repetitive labor, thus improving

the input-output ratio of enterprises.

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Figure 5. Comparative analysis of average net profit margin

5.2.2. MARKET SHARE OF DIGITAL PRODUCTS

In 2013 after a digital transformation to create a new growth point for A enterprise.

Started to devote to the research and development of the intelligent industry, enhance

consumer access through product intelligence, provide customers with a variety of

scenarios of smart home solutions, to achieve new development of the enterprise.

From 2013 to the present, Enterprise A's digital strategy runs situations to realize the

intelligence of individual products. Then through the establishment of a platform to

realize the interconnection between individual smart products and the remote control

of users. And in-depth cooperation with other companies, to break down the barriers

between platforms, so that external platforms and products can access the

management system, to achieve multi-product, multi-platform interoperability. Table 4

shows the results of the analysis of the market share of digital products, which began

to be transformed through intelligentization in 2013, and the market share of

enterprise A has thus been significantly expanded. Until 2019, the sales volume of

Enterprise A's digital products exceeded 70 million units globally. In addition to this,

the market share of the 3 products in the market has gradually increased since 2014,

with Product A reaching 33.8%. It can be seen that the implementation of the digital

transformation strategy of enterprise economic management has promoted the

process of product high-end, all kinds of advanced intelligent technology empowered

by the product makes its functions become more diverse and complex, and then

equipped with advanced design concepts, high-end materials and precision

manufacturing, giving birth to a high-end product that combines a variety of high-

quality conditions.

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Table 4. Analysis results of digital product market share

5.2.3. DIGITAL PRODUCTS OPERATING REVENUE

PERCENTAGE

After the transformation of the enterprise's products, its gross profit rate of sales will

appear a certain decline, because in the huge impact of e-commerce enterprises,

enterprises strongly support the expansion of the Internet business, but the market

competition is particularly fierce, in order to quickly occupy the market share, the

enterprise needs to carry out frequent promotional activities online, coupled with the

digital products in the operating categories still occupy a larger share, so the gross

profit rate will appear a certain decline in the Phenomenon. Figure 6 shows the

proportion of operating income from digital products, which basically remains above

30%, and after the digital model transformation in 2013, the proportion of its products

in operating income increased year by year, reaching 39.5% in 2017, realizing the

fundamental transformation of the enterprise's production, organization, and sales

model, promoting the transformation and upgrading of the enterprise, and also

improving the enterprise's operating efficiency.

Year Products1% Products 2% Products 3%

2011 22.7 6.5 17.5

2012 19.7 9.3 16.5

2013 21.6 7.3 16.8

2014 24.7 8.2 18.4

2015 25.2 9.6 21.3

2016 23.9 10.5 23

2017 24.6 10.7 24.6

2018 25 11 26

2019 28.9 12.6 27.4

2020 33.8 12.5 26.4

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Figure 6. Proportion of operating income of digital products

5.3. ROBUSTNESS TESTS

The development of digital economy may promote the technological innovation

level of enterprises by promoting innovation synergy among different subjects. Table 5

shows the results of the innovation synergy effect test, in which column (1) is the

benchmark regression and column (2) tests whether the digital economy has a

significant impact on the degree of enterprise innovation synergy. The results show

that the impact of the digital economy in terms of deep connectivity and reduced

collaboration costs significantly enhances the degree of collaboration among

innovation agents. (3) Column uses the number of enterprise innovations to regress

the digital economy and the degree of innovation synergy, and finds that innovation

synergy has a significant positive effect on the number of enterprise innovations,

indicating that the deepening of the degree of inter-agency innovation collaboration

significantly increases the innovation output of enterprises. Meanwhile, the estimated

coefficient of the degree of digital economy development declined after adding the

degree of innovation synergy, indicating that innovation synergy is one of the

mediating effects of the digital economy to promote the technological innovation level

of enterprises. Further, columns (4)-(6) provide a test on the mediating effect of the

degree of innovation synergy on the quality of innovation, and the results are

consistent with the quantity of innovation. It shows that innovation synergy and

technology absorption are important mechanisms for the digital economy to promote

technological innovation of enterprises, and that the innovation promotion effect of the

digital economy has a certain degree of correlation with the characteristics of

enterprises.

Table 5. Test results of innovation synergy

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6. CONCLUSION

This paper takes the digital transformation mechanism of enterprise economic

management as the research objective, uses digital technology to enhance enterprise

production, and tests the formula development water by constructing economic quality

model, and the conclusions are as follows:

1. In the impact analysis, the digital economy variable is significantly greater than

0 at 1% probability, and the positive effect is stronger. It indicates that the

digital economy application can promote the transformation performance of

SMEs through cost reduction and quality improvement in order to stimulate the

creativity and enhance the market competitiveness of enterprises.

In the analysis of economic benefits, the growth rate of operating income of

digital enterprises is more than 50%, and the market share of digital products

has reached 33.8%, and the proportion of operating income is basically

maintained at more than 30%. It shows that the digital transformation of the

enterprise helps to improve the productivity of the enterprise, thus improving

the input-output ratio of the enterprise.

The robustness test shows that the digital economy brings deep connection,

collaboration cost reduction and other aspects of the impact of the digital

economy significantly enhanced the degree of collaboration between

innovative subjects, and has a significant positive impact on the number of

enterprise innovation.

7. DISCUSSION

With the rapid development of technology, the digital transformation of the

economic management of enterprises will enter a more in-depth and complex stage.

In the future, one can look forward to the emergence of more intelligent and

personalized digital management tools that will better meet the growing needs of

Variable

Number of innovations Innovative quality

(1) (2) (3) (4) (5) (6)

Digital

economy

0.1476***

(3.34)

0.0023**

(4.20)

0.0673

(23.52)

0.0668**

(4.00)

0.0023**

(4.20)

0.0605

(3.43)

Period Control Control Control Control Control Control

432 0.3153 0.4345 0.2418 0.3153 0.2419

Observati

ons

427 427 427 427 427 427

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enterprises. The widespread application of cutting-edge technologies such as artificial

intelligence, big data analytics and the Internet of Things will provide enterprises with

more accurate data support and help decision makers make strategic decisions more

quickly and intelligently. There will be a focus on flatter and more flexible

organizational models, collaboration among employees will be more efficient, and

decision-making hierarchies will be more flexible, driving more resilient overall

business operations. Digital transformation will also promote closer interaction

between the enterprise and the external environment, strengthening the links between

the enterprise and its customers, suppliers and partners, and forming a closer

business ecosystem.

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