Digital Resources and Corporate Internal Control from the Perspective of Resource Empowerment and Interaction: Evidence from China

Digital resources (DR) provide new drivers for the effectiveness of internal control (IC). This study examines how DR empowers IC. Digital system resources (DSR) and digital human resources (DHR) positively affect IC effectiveness and achieve empowerment through the mediation of control activities and the information and communication process. DSR and DHR interact negatively in enhancing IC effectiveness, which may be due to functional overlaps, competence mismatch, and lack of collaborative management. DHR prompts IC effectiveness more significantly in non-state-owned, manufacturing, and high-tech enterprises; DSR has a broadly positive effect across enterprise types. This study promotes application of resource empowerment in IC.