Digital Transformation and Strategic Risk Taking : A Dynamic Capability Perspective

Digital transformation and risk taking are again at the forefront for practitioners and academics as the digital economy increasingly plays a significant role in global economic recovery. Building on the dynamic capability theory, we conduct an empirical analysis and investigate the relationship between digital transformation and strategic risk taking using data from China’s A-share listed companies. The results show that digital transformation increases strategic risk taking, with dynamic capability serving as a partial mediator. Additionally, the positive effect of digital transformation on strategic risk taking is weaker in SOEs (State-owned enterprises) than non-SOEs. These findings add to our understanding of both digital transformation and strategic risk taking, and they also offer novel insights on how digital transformation affects corporate strategic management