Abstract
As artificial intelligence, big data, and digital technologies become increasingly integrated into organizational systems, digital transformation has emerged as a key driver toward sustainable corporate development. Drawing on panel data from Chinese A-share listed firms covering 2018 - 2025, this study examines how digital transformation shapes firms’ sustained innovation input. Based on a two-way fixed-effects specification, the empirical results show that digital transformation significantly promotes firms’ sustained innovation input. Further mediating-effect analysis reveals that digital transformation alleviates financing constraints and thereby indirectly supports the continuity of long-term research and development activities. Heterogeneity tests demonstrate that this positive impact is particularly pronounced among non-state-owned firms and high-technology firms, while the incentive effect remains relatively weak for state-owned and non-high-tech firms. The findings highlight the role of intelligent digital technologies in strengthening firms’ innovation capabilities and long-term competitiveness. This study contributes to the literature on digital transformation, artificial intelligence-enabled innovation, and sustainable development. It provides empirical evidence that digitalization acts as a vital mechanism to foster sustained innovation input and underpin corporate sustainability.
Keywords:
- Keyword: Digital Transformation; Artificial Intelligence; Sustained Innovation Input; Financing Constraints; Sustainable Development; Digital Economy
How to Cite:
Zhao, Y. & Huang, J., (2026) “Digital Transformation as a Catalyst for Sustained Innovation Input: Evidence from Chinese A‑Share Listed Firms”, Journal of Intelligent and Sustainable Systems (JISS) 2(3).