Title: Crossing the digital Rubicon: innovation pathways and strategic choices in China's coal industry transformation

Authors: Xue Lei; Xueguo Xu; Huijuan Qiao

Addresses: School of Management, Shanghai University, Shanghai 200444, China ' School of Management, Shanghai University, Shanghai 200444, China ' School of Management, Shanghai University, Shanghai 200444, China

Abstract: This study examines how digital transformation impacts total factor productivity (TFP) in Chinese coal enterprises through technological innovation. Using panel data from A-share listed coal companies (2012-2022), we find that digital transformation significantly enhances TFP by fostering innovation in decision making, production techniques, and business models. We uncover a nuanced relationship between government subsidies and innovation: moderate subsidies amplify digital transformation's positive effects, while excessive subsidies may crowd out independent innovation. Managerial short-termism can impede technological advancement and diminish digitalisation benefits. Heterogeneity analysis shows digitalisation's positive impacts are more pronounced in central regions and state-owned enterprises. This research contributes to the discourse on industrial policy, technological change, and sustainable development in carbon-intensive industries. It offers insights for policymakers navigating energy transition, emphasising the importance of balanced government support, long-term managerial vision, and targeted digital strategies in fostering innovation and productivity growth. [Received: February 4, 2025; Accepted: July 2, 2025]

Keywords: digital transformation; total factor productivity; TFP; technological innovation; coal industry; energy transition.

DOI: 10.1504/IJOGCT.2026.153878

International Journal of Oil, Gas and Coal Technology, 2026 Vol.40 No.1, pp.110 - 130

Received: 31 Jan 2025
Accepted: 02 Jul 2025
Published online: 29 May 2026 *

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