Research on the Mechanism of Digital Transformation Affecting Financial Performance in Cross-Border E-Commerce Enterprises

DOI: https://doi.org/10.62517/jse.202611203

Author(s)

Ping Li, Pinru Li, Zhen Han

Affiliation(s)

Sias University, Zhengzhou, Henan, China

Abstract

Amid the global shift toward a digital economy, the complex link between digital transformation practices and financial outcomes among cross-border e-commerce firms remains underexplored. Focusing on the underlying mechanisms of this relationship, this study combines theoretical analysis with empirical modeling to show that digital transformation influences corporate financial performance primarily through three channels: operational optimization, market expansion, and innovation capacity. Operational optimization drives cost reduction, efficiency gains, and process restructuring; market expansion deepens customer relationships via precision marketing; and innovation capacity fuels iterative upgrades to products and business models. Further analysis reveals that the efficacy of these channels is not fixed. It is significantly constrained by firm size and resource endowments, and strongly supported by digital talent reserves and organizational culture. The findings confirm that the financial impact of digital transformation is a multi-dimensional, contingent process, offering actionable theoretical insights for cross-border e-commerce enterprises designing differentiated digital strategies.

Keywords

Digital Transformation; Cross-Border e-Commerce; Financial Performance; Impact Mechanism; Firm Characteristics

References

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