How Confucian Culture Promotes Digital Transformation of Enterprises: From Value Guidance to Mechanism Construction
Summary:Enterprise digital transformation is the core driving force behind the prosperous development of the digital economy. However, at present, Chinese enterprises are facing a series of complex problems and challenges in the process of digital transformation. Many enterprises find it difficult to succeed in their digital transformation, leading to reluctance, inability, and unwillingness to undergo the transformation, which not only restricts the enhancement of their core competitiveness but also hinders the healthy development of the digital economy. Therefore, the question of how to drive enterprise digital transformation has become a focal issue for both academia and industry to explore.This paper argued that during the strategy formulation stage, the lack of willingness to undergo digital transformation are the main reasons for enterprises falling into the digital transformation dilemma. During the strategy implementation stage, the scarcity of digital resources and low digital capabilities make it difficult for enterprises to achieve their expected digital transformation goals. Based on the analysis of the main causes of digital transformation dilemmas, this paper interprets the potential values of Confucian culture, including the concepts of righteousness and interests, awareness of potential hazards, the concept of continuous learning, and the doctrine of the mean, in resolving enterprise digital transformation dilemmas. This paper proposes the following mechanisms to translate the potential values of Confucian culture into practical driving forces for promoting enterprise digital transformation. First, it is crucial to construct a management incentive mechanism that includes profit sharing and risk sharing, which can increase decision-makers'expected benefits from digital transformation and reduce the risks they assume,thereby enhancing managers'willingness for digital transformation. Second, it is necessary to improve the information governance mechanism to provide high-quality information support for the formulation and implementation of digital transformation strategies through comprehensive and diversified information collection and deep information mining. Third, it is essential to establish a mechanism to enhance digital literacy, including talent attraction and talent cultivation, by enhancing organizational members' digital knowledge and skills to address the shortage of digital talents. Fourth, it is necessary to establish a collaborative integration mechanism that includes cognitive integration and interest coordination to drive the implementation of digital transformation strategies by establishing consensus and balancing the interests of various parties in digital transformation. This paper enriches the study of driving factors and operating mechanisms of digital transformation,especially focusing on the important values of Confucian culture in promoting enterprise digital transformation and explaining its operating mechanisms,providing a research direction for analyzing the positive role of Confucian culture in the digital era.This study also provides feasible reference suggestions for enterprises to accelerate digital transformation. Enterprises can draw on the wisdom of Confucian culture,such as the concepts of righteousness and interests, awareness of potential hazards, the concept of continuous learning, and the doctrine of the mean, to guide their own transformation practices
digital transformationConfucian cultureinformal institutionsstrategy processvalue guidancemechanism construction