Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

3-2025

Abstract

In recent years, enterprises in the clothing industry have experiencedvarying degrees of performance decline, primarily influenced bymacroeconomic cyclical factors and intrinsic industry issues. Firstly, under the influence of macroeconomic cycles, the clothing industry has demonstratedstrong cyclical characteristics. Since 2019, weakened global macroeconomic conditions have negatively impacted both clothing exports and domestic sales, coupled with a slowdown in China's macroeconomic growth, puttingsignificant pressure on the overall growth of the clothing sector. Secondly, the industry faces several internal challenges, including rising labor costs, severe supply-demand mismatches, overcapacity on the production side, and longinventory cycles. Digital transformation has emerged as an important optionfor clothing enterprises to address these industry challenges. However, there are still relatively few enterprises that have achieved remarkable results indigital transformation within the clothing sector. Therefore, this paper aims toidentify the key success factors that can serve as levers for digital transformation in clothing enterprises and explore the role of this transformation in promoting high-quality development for those enterprises.

Firstly, based on a literature review and a case analysis of Company Y, this paper identifies that the positive impact of digital transformation on digital transformation performance in the clothing industry includes 14 key success factor indicators, comprising 5 technological factors, 5 organizational factors, and 4 environmental factors. The technological factors include the applicationof intelligent data prediction and analysis technology, personalization andcustomization technology, supply chain digitalization technology, rapidproduction technology, and logistics system intelligence technology. The organizational factors encompass cultivating digital culture, building cross- departmental collaboration teams, enhancing employee training and talent reserves, establishing innovation incentive mechanisms, and fosteringtransformational leadership. The environmental factors consist of leveragingsocial media and influencer marketing, establishing customer feedbackmechanisms, utilizing virtual fitting and augmented reality, and ensuringregulatory compliance.

Secondly, this paper presents the following conclusions based onempirical analysis:

(1) By using organizational factors, technological factors, andenvironmental factors obtained from factor analysis as independent variables, and comprehensive performance of digital transformation, financial performance of digital transformation, and non-financial performance of digital transformation as dependent variables for regression analysis, the results indicate that organizational factors have the greatest impact onperformance, followed by technological factors and environmental factors.

(2) The top six key factors influencing the comprehensive performance of digital transformation are cross-departmental collaboration, digital culture, employee training and talent reserves, supply chain digitalization technology, personalization and customization technology, and innovation incentives. The top six key factors affecting the financial performance of digital transformation are cross-departmental collaboration, digital culture, employee training and talent reserves, personalization and customization technology, andintelligent data prediction and analysis technology. The top six key factors impacting the non-financial performance of digital transformation are cross- departmental collaboration, digital culture, employee training and talent reserves, innovation incentives, and transformational leadership.

(3) Cross-departmental collaboration, digital culture, and employee training and talent reserves are identified as the most important factors; theynot only influence financial performance but also play a key role in nonfinancial performance. Among the technological factors, the supply chaindigitalization technology also has a considerable impact on both financial andnon-financial performance, ranking second. Additionally, personalization andcustomization technology and intelligent data prediction and analysis technology significantly influence financial performance.

(4) This paper groups the survey samples based on enterprise size (large, medium, and small) to explore the impact of key success factors for digital transformation on digital transformation performance across different-sizedenterprises. In the samples of small and medium-sized enterprises, organizational factors, technological factors, and environmental factors all show a significantly positive impact on digital transformation (comprehensivefinancial, and non-financial) performance, with the impact of organizational factors being greater than that of technological factors, and the impact of technological factors being greater than that of environmental factors. This finding is consistent with the main model's conclusions. However, it is important to note that in the sample of large enterprises, the impact of organizational factors on the financial performance of digital transformation is not significant. Therefore, the conclusion that the impact of organizational factors is greater than that of technological factors and the impact of technological factors is greater than that of environmental factors is more applicable to small and medium-sized clothing enterprises.

(5) Grouped regression analysis with occupation as the basis for sample classification shows that organizational factors have the greatest impact ondigital transformation performance, followed by technological factors andenvironmental factors, consistent with the main model's conclusions. In the technical backbone group, technological factors have a larger impact on digital transformation performance, while the impact of organizational factors andenvironmental factors is relatively smaller. Thus, it confirms that the impact of organizational factors is greater than that of technological factors, and the impact of technological factors is greater than that of environmental factors.

Based on the above conclusions, this paper provides the followingrecommendations for digital transformation in the clothing enterprises: (1) Digitalization is a top-down initiative. Digital transformationrequires the participation of the entire clothing enterprise and the deepinvolvement of leadership is crucial. The senior management should clarifystrategic direction and promote cross-departmental collaboration and information sharing, to ensure smooth implementation of the transformationand facilitate the development of a digital culture within the enterprise. (2) Start with healthy business modules. Clothing enterprises shouldcommence their digital transformation with healthy and mature business modules, as this approach is more likely to yield success. A healthy business lays the foundation for digitalization, accumulates experience, and boosts confidence, thereby driving subsequent transformation efforts. (3) Digitalization is a tool. Digital transformation serves as a tool for enhancing efficiency, relying fundamentally on sound business logic. While digitalization can optimize existing processes and improve employee productivity, its effectiveness is limited if the underlying business of the clothing enterprise is not healthy. (4) Enhance employees' digital competencies. The digital competencies of employees are vital to the success of the transformation. Clothingenterprises need to improve employees' adaptability to digital tools throughtraining and cultural guidance, helping them leverage data and technology tosupport decision-making in their daily work. (5) The application of AI technology is the next direction. For clothingenterprises that have achieved a certain level of digitalization, AI technologywill further improve delicacy management and business efficiency. ThroughAI, clothing enterprises can achieve more precise resource allocation andpersonalized services, thereby strengthening competitiveness.

Keywords

clothing enterprises, digital transformation, key success factors, TOE framework, performance

Degree Awarded

Doctor of Business Administration (Accounting and Finance)

Discipline

Accounting | Technology and Innovation

Supervisor(s)

MA, Dan

First Page

1

Last Page

209

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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