Abstract: Based on the new classical division of labor network theory, this paper constructs a mathematical model for the first time to examine the impact of party organization embedding on the digital transformation of private enterprises, and makes the empirical test using data from the 14th National Survey of Private Enterprises. The results show that party organization embedding significantly promotes the digital transformation of private enterprises by leveraging external resource linking mechanism and internal stability maintenance mechanism. Heterogeneity analysis indicates that this effect is more profound in private enterprises with large scale, low level of digitalization, and non-family operation. Additional robustness checks suggest that party organization embedding can synergize with the modern governance structure and amplify the benefits of new infrastructure construction, thereby facilitating the digital transformation of private enterprises and contributing to their high-quality development.
