Abstract: The digital-intelligence transformation of enterprises is another development direction following the digital transformation. By providing a comprehensive definition of digital intelligence and utilizing precise identification of digital-intelligence companies through two-digit industry codes, this paper innovatively proposes the establishment of digital-intelligence subsidiaries as a new criterion for judging an enterprise's digital-intelligence transformation and accordingly calculates the proportion of digital-intelligence subsidiaries among all subsidiaries of the parent company. Empirical analysis uses data from listed companies in the Yangtze River Delta region from 2000 to 2021, sourced from the CNRDS database. The study shows that the higher the degree of division of labor among digital-intelligence subsidiaries, the more significant the performance improvement in listed companies. As for the moderating effects, it is discovered that overly dense distribution of digital-intelligence subsidiaries around a company weakens this positive impact, while the presence of companies in their growth phase amplifies the facilitative effect. As for the heterogeneity analysis, the main effect is more pronounced for companies located in second-tier cities, non-digital-intelligence companies, and private enterprises. This research provides several reference suggestions for promoting the transition of Chinese enterprises from digitalization to digital intelligence and advancing the industry towards higher quality development.
