Digital technology, digital capability and organizational performance
By Sabai Khin, Theresa C. F. Ho. International Journal of Innovation Science, 2019
808 citations recorded by the source corpus.
PurposeDespite the growing importance of digital innovation conceptualized as innovative digital solutions that enable digital transformation of businesses across industries, empirical study of factors related to digital innovation is still scant, creating a knowledge gap. To fill this gap, this paper aims to examine the effect of digital orientation and digital capability on digital innovation, and also the mediating effect of digital innovation on the link between organizational performance and digital orientation as well as digital capability.Design/methodology/approachThis study tests a new conceptual framework using a survey data of 105 small to medium-sized IT firms in Malaysia and employing structural equation model (SEM) analysis from partial least square (PLS) approach.FindingsThe results show that digital orientation and digital capability have positive effect on digital innovation and also that digital innovation mediates the effect of technology orientation and digital capability on financial and non-financial performance.Practical implicationsThe findings encourage the firms to take the opportunity of emerging digital technologies and digitalization trend in industries by being committed toward embracing new digital technologies and upgrading their digital capabilities to become innovation leaders and also to boost firms’ performance.Originality/valueThis study is one of the first studies that explain how emerging digital technologies can be leveraged to create innovative digital products and services and subsequently boost their business performance. It also fills the literature gaps related to driving factors of digital innovation and mediating role of digital innovation on the link between its driving factors and performance.
Subfields: Industrial and Manufacturing Engineering, Information Systems and Management, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/1bbd81d6194e90a665ebf91a060b04e699c75cf5
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Management Science and Operations Research
Citations in the corpus
- Digital transforming capability and performance: a microfoundational perspective (2020, background): “So far, other studies have focused on the digital transformation of single industries (Kretschmer and Claussen, 2016), and there have been calls for cross-industry research (Khin and Ho, 2019; Lanzolla et al., 2018).”