The study introduces how digitalization affect firm-level total factor productivity (TFP) for Chinese logistics firms. And whether the mediating effect of technological innovation efficiency and supply chain efficiency is investigated. This paper also aims to elucidate the tax rebates and government subsidies for improving TFP.
Based on the affordance theory and institutional theory, this paper examines the relationship between digitalization and green TFP by using a sample consists of 511 firm-year observations covering 51 Chinese-listed logistics firms from 2014 to 2023.
The findings suggest that digitalization improves TFP. Digitalization enhances TFP primarily by improving technological innovation efficiency and supply chain efficiency. In addition, tax rebates amplify the positive effect of digitalization on TFP. And subsidies have “inverted-U” effect on the relationship between digitalization and TFP.
This study demonstrates that digitalization can drive logistics firms’ TFP. Governments should adopt the incentive policies. The degree of government subsidies should be appropriate. Tax rebates should be continuously adopted and improved.
This study constructs an analytical framework of digitalization, efficiency and TFP. From the efficiency view, TFP acts as performance indicator, so the research expands the theoretical boundaries of affordance and institutional theory.
