Does corporate creation culture drive digital transformation: evidence from an emerging market

Using text analysis of annual reports from Chinese-listed firms between 2008 and 2023, this study examines the impact of creation culture on digital transformation. Integrating the Competing Values Framework, Schumpeterian innovation theory, and the Resource-Based View, we propose that a stronger creation culture is associated with higher levels of digital transformation. Innovation capacity and market competition serve as internal and external mediating mechanisms through which creation culture influences digital transformation, with findings robust to multiple identification strategies (e.g. ITCV, 2SLS and DID) and robustness checks. This study extends digital transformation literature by indicating the mechanisms and conditions through which creation culture drives transformation in an emerging economy, while highlighting creation culture as a strategic lever for managers, a qualitative signal for investors, and a useful guide for policymakers in fostering substantive digital transformation.