What has digital transformation changed? : A Chinese case study of hidden costs using a socio-economic approach to management

Digital transformation is regarded as a way to solve business problems in an organisation. However, the impact on the company’s hidden costs should also be more precisely analysed. This research relies on the socio-economic approach to management to describe the impact of digital transformation maturity growth on hidden costs in a Chinese manufacturing company. This paper combines the case study research method with some quantitative techniques by conducting correlation analyses of staff turnover, low-quality work and occupational injuries and diseases. The results indicate that digital transformation maturity growth is correlated with the financial consequences of staff’s excess salary in terms of turnover and with non-production in terms of occupational injuries and diseases. Moreover, this study suggests that future studies should consider the impact of digital transformation maturity growth on these three factors in light of the corresponding contextual factors regarding organisational contexts and cultures.