Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation
IntroductionDigital transformation (DT) refers to the process of leveraging digital technologies to drive innovation in business models, thereby enabling enterprises to create greater value and deliver innovative solutions for efficient agricultural production.MethodsUsing data from 211 listed agric...
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Frontiers Media S.A.
2025-04-01
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| Series: | Frontiers in Sustainable Food Systems |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fsufs.2025.1547358/full |
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| author | Yue Yuan Hui Wu Yang Shen |
| author_facet | Yue Yuan Hui Wu Yang Shen |
| author_sort | Yue Yuan |
| collection | DOAJ |
| description | IntroductionDigital transformation (DT) refers to the process of leveraging digital technologies to drive innovation in business models, thereby enabling enterprises to create greater value and deliver innovative solutions for efficient agricultural production.MethodsUsing data from 211 listed agricultural companies in China from 2009 to 2022, this study investigates the impact and pathways through which DT influences financial performance (FP), employing a range of methodologies. To enhance text mining accuracy, the research incorporates natural language processing (NLP) and large language models (LLM).ResultsThe findings indicate that DT within agricultural enterprises’ production, purchasing, and sales departments significantly enhances FP. To address potential endogeneity concerns, robustness checks were conducted using propensity score matching (PSM), the Heckman two-stage model, and the two-stage least squares (2SLS) method. Mechanism analysis reveals that DT improves FP through three primary channels: reducing sales expenses, easing cost stickiness, and promoting breakthrough innovation. However, the positive effects of DT exhibit heterogeneity. These effects are more pronounced in non-state-owned enterprises, larger firms, and enterprises located in major grain-producing regions.ConclusionThis study validates the necessity for enterprises to use digital technology to improve financial performance in the digital age. By expanding the measurement methods for DT, the research provides valuable insights for enterprises seeking to leverage digital tools to optimize agricultural production efficiency. |
| format | Article |
| id | doaj-art-fb8a77624d96437ea9a244259608c873 |
| institution | DOAJ |
| issn | 2571-581X |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Sustainable Food Systems |
| spelling | doaj-art-fb8a77624d96437ea9a244259608c8732025-08-20T03:06:13ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2025-04-01910.3389/fsufs.2025.15473581547358Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformationYue Yuan0Hui Wu1Yang Shen2School of Economics and Management, Qilu Normal University, Jinan, ChinaSchool of Economics and Management, Nanjing Forestry University, Nanjing, ChinaInstitute of Quantitative Economics and Statistics, Huaqiao University, Xiamen, ChinaIntroductionDigital transformation (DT) refers to the process of leveraging digital technologies to drive innovation in business models, thereby enabling enterprises to create greater value and deliver innovative solutions for efficient agricultural production.MethodsUsing data from 211 listed agricultural companies in China from 2009 to 2022, this study investigates the impact and pathways through which DT influences financial performance (FP), employing a range of methodologies. To enhance text mining accuracy, the research incorporates natural language processing (NLP) and large language models (LLM).ResultsThe findings indicate that DT within agricultural enterprises’ production, purchasing, and sales departments significantly enhances FP. To address potential endogeneity concerns, robustness checks were conducted using propensity score matching (PSM), the Heckman two-stage model, and the two-stage least squares (2SLS) method. Mechanism analysis reveals that DT improves FP through three primary channels: reducing sales expenses, easing cost stickiness, and promoting breakthrough innovation. However, the positive effects of DT exhibit heterogeneity. These effects are more pronounced in non-state-owned enterprises, larger firms, and enterprises located in major grain-producing regions.ConclusionThis study validates the necessity for enterprises to use digital technology to improve financial performance in the digital age. By expanding the measurement methods for DT, the research provides valuable insights for enterprises seeking to leverage digital tools to optimize agricultural production efficiency.https://www.frontiersin.org/articles/10.3389/fsufs.2025.1547358/fulldigital transformationnatural language processingagricultural listed companiesfirm performancetechnological innovationbreakthrough innovation |
| spellingShingle | Yue Yuan Hui Wu Yang Shen Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation Frontiers in Sustainable Food Systems digital transformation natural language processing agricultural listed companies firm performance technological innovation breakthrough innovation |
| title | Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation |
| title_full | Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation |
| title_fullStr | Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation |
| title_full_unstemmed | Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation |
| title_short | Achieve sustainable operation of agricultural enterprises: improving agribusiness performance through digital transformation |
| title_sort | achieve sustainable operation of agricultural enterprises improving agribusiness performance through digital transformation |
| topic | digital transformation natural language processing agricultural listed companies firm performance technological innovation breakthrough innovation |
| url | https://www.frontiersin.org/articles/10.3389/fsufs.2025.1547358/full |
| work_keys_str_mv | AT yueyuan achievesustainableoperationofagriculturalenterprisesimprovingagribusinessperformancethroughdigitaltransformation AT huiwu achievesustainableoperationofagriculturalenterprisesimprovingagribusinessperformancethroughdigitaltransformation AT yangshen achievesustainableoperationofagriculturalenterprisesimprovingagribusinessperformancethroughdigitaltransformation |