Data elements and enterprise total factor productivity: the role of innovation and resource allocation

In the digital economy era, reliance on traditional factor inputs alone can no longer enhance firms’ total factor productivity (TFP). Data elements, as an emerging factor of production, have become a critical driver of efficiency enhancement and entrepreneurial performance. This study examines the impact of data elements on enterprise TFP and explores the mechanisms through which this effect operates. Using panel data from all A-share listed companies in China from 2009 to 2021, we construct a provincial-level indicator of data elements based on the cost method and empirically assess their productivity effects. The results show that data elements significantly enhance firms’ TFP. More importantly, we identify two key entrepreneurial mechanisms through which data elements exert this influence: strengthening innovation capability and improving resource allocation efficiency. By linking data elements with entrepreneurial resource orchestration and dynamic capabilities, this study provides new evidence on how digital resources reshape productivity in modern enterprises. The findings offer practical implications for policymakers and entrepreneurial managers aiming to achieve sustainable competitive advantage through data-driven strategies.