Abstract
Digital technologies, including artificial intelligence, big data, cloud computing, and blockchain, are increasingly embedded in firms’ production and management systems, enabling more intelligent information processing, resource allocation, and operational coordination. Against this background, digital transformation has become an important means of improving production efficiency and upgrading business systems. Using Chinese A-share listed companies from 2012 to 2025 as the sample, this study examines the effect of digital transformation on total factor productivity (TFP) and further tests the mediating role of asset utilization efficiency. The results show that digital transformation significantly increases firm-level TFP, with asset utilization efficiency serving as a partial mediator. The main findings remain valid after alternative productivity measures, adjustments to the sample, propensity score matching, and an instrumental-variable approach are employed. Heterogeneity analysis indicates that the positive effect is stronger among firms in western China and state-owned enterprises. It is significant for labor-intensive and capital-intensive firms but not for technology-intensive firms. Overall, the findings demonstrate how digital transformation can enhance firm productivity through the integration of intelligent technologies and more efficient resource utilization, providing firm-level evidence for the development of more efficient and intelligent business systems.
Keywords:
- Keyword: Digital Transformation; Intelligent Systems; Total Factor Productivity; Asset Utilization Efficiency; Resource Allocation
How to Cite:
Feng, Y. & Huang, J., (2026) “Digital Transformation and Total Factor Productivity: An Intelligent System Perspective”, Journal of Intelligent and Sustainable Systems (JISS) 2(3).