Research on the influence of enterprises digital transformation on inventory turnover

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Currently, the economic environment is highly uncertain, and enterprises must leverage digital transformation to empower supply chain leadership. This is crucial not only for their survival and development but also for maintaining the strength and safety of China’s industrial and supply chains at the micro level. This paper examines the impact of digital transformation on inventory turnover using data from A-share listed companies in China’s Shanghai and Shenzhen stock exchange from 2014 to 2022. The results show that huge improvement is achieved in inventory turnover by digital transformation. Further exploration into the mechanisms reveals that the improvement in inventory turnover due to digital transformation is more pronounced in companies with higher supply chain immersion and more government subsidies. Heterogeneity analysis indicates that the stronger financial development, innovation, and openness in the region where the enterprise is located, the more significant the positive effects of digital transformation on inventory turnover. Finally, feasible recommendations are provided for both the government and enterprises, offering guidance to promote digital transformation and enhance inventory turnover.