Can efforts to break down the “information silos” improve business performance? — Verification from the intelligence information technology

High-quality information resources are crucial for the development of enterprises, which can help them accurately analyze user needs, optimize decisions, promote intelligent management, and enhance profitability. However, the practical application of intelligent information technology (Intelli-IT) in enterprise production and operations remains relatively limited, and its actual effectiveness in improving enterprise performance still lacks sufficient empirical evidence. Existing literature mostly explores digitalization issues at the conceptual level or through indirect outcomes such as patent applications and innovations, and has not yet answered whether the adoption of Intelli-IT by enterprises in actual operations can causally improve core operational performance by breaking down information silos. By using text mining data from annual reports of Chinese A-share listed companies from 2011 to 2024 and a multi-period TWFE-DID model, this study empirically examines the impact and mechanism of Intelli-IT on corporate performance, which is measured by total factor productivity (TFP). The results reveal a typical “IT Productivity Paradox”: intelligent information technology significantly improves TFP of enterprises, although it may put some pressure on accounting profits in the short term. Mechanism analyses demonstrate that this productivity dividend stems from deepening relationship-specific investments, improving corporate governance and accelerating fixed asset turnover. Furthermore, these empowering effects are most pronounced for firms with weaker market power, non-high-tech industries, and enterprises in central and western China. Our findings, robust to rigorous tests including AI-washing exclusion, provide causal evidence of Intelli-IT’s real economic effects and offer valuable insights for enterprise digital transformation.