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The digital economy has become a pivotal force in global economic expansion. Mineral resource-based enterprises, heavily reliant on natural resources, face the necessity to undergo digital transformation (DT) to modernize and upgrade their operations, ensuring sustainable development in the digital era. Despite the recognized importance of DT for business development, specific drivers for DT in mineral resource-based enterprises remain underexplored, particularly the impact of the legal environment. This study investigates the influence of the legal environment on the DT of mineral resource-based enterprises by analyzing sample data from A-share listed companies in China from 2007 to 2022. A fixed-effects model is employed to assess the relationship between the legal environment and DT, incorporating control variables such as enterprise age, shareholding ratio of the largest shareholder, board size, and financial indicators. The findings reveal that an optimized legal environment significantly promotes DT in mineral resource-based enterprises. This positive effect is more pronounced in the western region of China, among enterprises engaged in coal and non-ferrous metal industries, and in small and medium-sized enterprises. Mechanism tests indicate that the legal environment facilitates DT by improving technological innovation, alleviating financing constraints, and developing factor markets. The study concludes that a favorable legal environment, characterized by strong legal protection and enforcement, is crucial for promoting DT in mineral resource-based enterprises. The study recommended to strengthen legal protection and enforcement mechanisms, providing tailored support policies for different regions and industries. © 2025 Elsevier Ltd
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Journal of Environmental Management
ISSN: 0301-4797
Year: 2025
Volume: 392
8 . 0 0 0
JCR@2023
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ESI Highly Cited Papers on the List: 0 Unfold All
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30 Days PV: 2
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