IMPACT OF DIGITAL ECONOMY ON GOVERNANCE SYSTEM INFLUENCING DIGITALIZATION AND SOCIAL REFORMS

Abstract

The primary objective of this research project was to evaluate the influence that social reforms, digitization, and the digital economy have on sustainable governance. In addition, the function of the quality of life as a potential mediator of the connection between the digital economy, digitalization, and social reforms was investigated in this study. For data collection, a questionnaire method was administered to 465 members of management staff working in China's corporate sector. A structural equation modeling (SEM) approach and the Smart PLS software were utilized to analyze the collected data. According to the findings, the direct relationship between the digital economy and the sustainable governance mechanism is insignificant. On the other hand, the findings showed a positive and significant relationship between digitalization and social reforms and the sustainable governance mechanism. The findings also showed that quality of life served as a mediator between the digital economy, digitalization, and social changes. This was another important discovery. In terms of the practical consequences, it is without a doubt that this study would help to strengthen the sustainability of governance mechanisms through the implementation of social reforms, the digital economy, and digitalization. In addition, the challenges associated with the digital economy could be addressed with the assistance of this study.