Research on World Agricultural Economy

Digital Economy Transformation and Sustainable Development of Agricultural Enterprises: A Study on Supply Chain Finance Innovation and Environmental Governance in Rural Areas

Song He

Faculty of Business and Communication, INTI International University, Seremban 71800, Malaysia

DOI: https://doi.org/10.36956/rwae.v6i3.1684

Received: 17 January 2025 | Revised: 10 February 2025 | Accepted: 26 February 2025 | Published Online: 8 July 2025

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Abstract

This study examines digital economy transformation's impact on agricultural enterprises' sustainable competitiveness through supply chain finance innovation and environmental governance mechanisms. Against the backdrop of global agricultural digitalisation projected to reach $22.5 billion by 2025, with agricultural supply chain finance comprising 18.7% of total agricultural financing, this research employs hierarchical regression analysis and structural equation modelling on comprehensive data from 847 farms across twelve major farming regions spanning 2018–2023. The analysis reveals that innovative agricultural supply chain finance significantly enhances environmental governance effectiveness (β = 0.412, p < 0.01), with crop farming demonstrating stronger effects (β = 0.456) than livestock operations (β = 0.378). Smart farming technologies emerge as crucial mediators, accounting for 32.9% of this relationship with substantial mediation effects (β = 0.345, p < 0.01). Institutional support exhibits significant positive moderation (β = 0.228, p < 0.01), particularly through agricultural subsidies and rural financial policies. Heterogeneity analysis demonstrates pronounced variations across agricultural contexts, with large-scale farming operations (β = 0.467), agricultural cooperatives (β = 0.423), and enterprises in developed agricultural regions (β = 0.445) experiencing amplified positive impacts. These findings elucidate the mechanisms through which digital financial innovation advances agricultural sustainability via enhanced technological capabilities while underscoring the critical role of supportive agricultural policies. The research provides valuable insights for policymakers and practitioners seeking to design effective strategies that leverage innovative financial mechanisms to strengthen environmental governance within agricultural enterprises.

Keywords: Agricultural Supply Chain Finance Innovation; Digital Agriculture; Environmental Governance; Agricultural Technological Capability; Rural Financial Innovation; Sustainable Agriculture

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