The Impact of MIS Investment on the Technical Efficiency of SMEs Under Digital Transformation: Empirical Evidence from China’s A-Share Small and Medium-Sized Listed Companies

Boyi Li, Bingnan Li, Baoyu Luo

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¹ Business College, Southwest University, Chongqing 402460, China,

PBES 2026 , 9(4), 160–171; https://doi.org/10.26689/pbes.v9i4.14957

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Abstract

Using the panel data of small and medium-sized board listed companies in China’s A-share market from 2021 to 2024, this research applies the input-oriented DEA-BCC model to measure the technical efficiency at the company level and then adopts the industry-annual two-way fixed effects model to examine the influence of management information system investment on the technical efficiency of small and medium-sized enterprises. We find that the investment in the management information system significantly restrains the technical efficiency: an increase of one standard deviation in the investment intensity will lead to the efficiency decreasing by 0.0431 units, which is equivalent to 13.34% of the sample mean and this confirms that there is a productivity paradox in the digital transformation of small and medium-sized enterprises which is analogous to the classic Solow Paradox at the corporate level. This inhibitory effect is more obvious in small-scale, high-leverage, low-profitability companies, which shows that resource endowments and risk-resistance capabilities are indeed the key boundary conditions. This research not only provides micro-empirical evidence for the research regarding the digital transformation of small and medium-sized enterprises but also produces practical reference materials for enterprises and policymakers.

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