Empirical analysis reveals digital transformation reduces cost stickiness in Chinese agriculture-related companies, suggesting effective modernisation strategies for NSOEs and SOEs.
The transition to digital operations represents a critical driver in advancing the digital economy's quality growth. Within this context, the agricultural sector—encompassing farming, forestry, livestock, and fisheries—holds particular significance as a foundational pillar of national economic development, making its digital transformation especially consequential. This study examines the nexus between digital adoption and cost stickiness using a sample of Chinese agriculture‐related listed companies from 2007 to 2021. Empirical findings reveal that digital initiatives markedly mitigate cost stickiness. Further heterogeneity analysis demonstrates three key insights: the stickiness‐reducing effect is more pronounced in NSOEs compared to SOEs; companies with relatively dispersed equity and low institutional shareholding ratios exhibit stronger responsiveness to digital‐driven cost optimisation; stable operating environments amplify digitalisation's efficacy in curbing cost stickiness. The study offers actionable insights for policymakers and agricultural companies navigating digital modernisation pathways.
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Luo et al. (2025) studied this question.
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