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Article
Publication date: 25 April 2024

Xiaoyong Zheng

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known…

Abstract

Purpose

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Design/methodology/approach

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

Findings

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

Originality/value

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 19 December 2023

Tian Hongyun, Jan Muhammad Sohu, Asad Ullah Khan, Ikramuddin Junejo, Sonia Najam Shaikh, Sadaf Akhtar and Muhammad Bilal

In this digital age, the rapid technological innovation and adoption, with the increasing use of big data analytics, has raised concerns about the ability of small and medium…

Abstract

Purpose

In this digital age, the rapid technological innovation and adoption, with the increasing use of big data analytics, has raised concerns about the ability of small and medium enterprises (SMEs) to sustain the competition and innovation performance (IP). To narrow the research gap, this paper investigates the role of big data analytics capability (BDAC) in moderating the relationship between digital innovation (DI) and SME innovation performance.

Design/methodology/approach

This research has been carried forward through a detailed theory and literature analysis. Data were analyzed through confirmatory factor analysis and structural equation models using a two-stage approach in smartPLS-4.

Findings

Results highlight that digital service capability (DSC) significantly mediates the relationship between DI and IP. Additionally, value co-creation (VCC) directly affects digital transformation (DT), while DI has a stronger effect on DSC than IP. Furthermore, BDAC significantly moderates the relation between DSC → IP and DT → IP, whereas it has a detrimental effect on the relation between DI and IP. In addition to that, VCC, DSC, DT, DI and BDAC have a direct, significant and positive effect on IP.

Practical implications

This research was motivated by the practical relevance of supporting SMEs in adopting DT and the resource-based view (RBV) and technology acceptance model (TAM). This study shows that all direct and indirect measures significantly affect innovation performance, including BDAC as moderator. These findings refresh the perspective on what DT, DI, VCC, DSC and BDAC can bring to a firm's innovation performance.

Originality/value

This paper has contributed to DT by empirically validating a theoretical argument that suggests the acceptance and adoption of new technology. This paper aims to fill theoretical gaps in understanding BDAC and DT by incorporating the RBV and TAM theories on BDAC and DT.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 14 September 2023

Trihadi Pudiawan Erhan, Sebastiaan van Doorn, Arnold Japutra and Irwan Adi Ekaputra

This study integrates insights from upper echelon (UE) theory and the attention-based view (ABV) to analyze how digital marketing innovation might enhance organizational…

Abstract

Purpose

This study integrates insights from upper echelon (UE) theory and the attention-based view (ABV) to analyze how digital marketing innovation might enhance organizational performance in a pandemic context by addressing top management team (TMT) decision-making comprehensiveness and environmental dynamism.

Design/methodology/approach

This research utilizes a dataset collected through a questionnaire survey of 143 Indonesia Stock Exchange (IDX)-listed firms operating during the coronavirus pandemic (COVID-19). Hierarchical regression analyses were used to assess the overall hypothesis.

Findings

The authors discover that innovation in digital marketing has a beneficial effect on firm performance in a pandemic setting. The authors further find that decision comprehensiveness moderates the relationship between digital marketing innovation and firm performance with accentuated benefits in stable environments.

Originality/value

This study broadens the understanding of contextual factors that influence the performance benefits of digital marketing innovation and sheds light on the role of TMT decision comprehensiveness in enhancing the impact of digital marketing innovation on firm performance. In addition, the authors developed and tested a new digital marketing innovation measure.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 20 January 2022

Hongjuan Tang, Qi Yao, Francis Boadu and Yu Xie

As an important driving factor of digital innovation, distributed innovation has received extensive attention from academia and business circles in recent years. However, extant…

2433

Abstract

Purpose

As an important driving factor of digital innovation, distributed innovation has received extensive attention from academia and business circles in recent years. However, extant works lack a discussion on the influence of distributed innovation on digital innovation performance. Drawing on the opportunity perspective, the study constructs a moderated mediating model to address how distributed innovation directly affects enterprises' digital innovation performance. Particularly, it investigates the moderating and mediating effects of IT-enabled capabilities and digital entrepreneurial opportunities on the above correlation.

Design/methodology/approach

With a survey data set of 399 Chinese science and technology enterprises, the study conducts hierarchical linear modeling (HLM) and bootstrap to test the study’s hypotheses.

Findings

Results demonstrate that (1) distributed innovation positively enhances enterprises' digital innovation performance; (2) digital entrepreneurial opportunities partially mediate the positive relationship between distributed innovation and digital innovation performance; (3) IT-enabled capabilities positively moderate the relationship between distributed innovation and digital entrepreneurial opportunities; (4) IT-enabled capabilities positively moderate the mediating role of digital entrepreneurial opportunities in the relationship between distributed innovation and digital innovation performance.

Originality/value

This is an empirical study on the impact mechanism of IT-enabled capabilities and digital entrepreneurial opportunities on the relationship between distributed innovation and digital innovation performance in China. It advances theories related to distributed innovation, digital innovation and digital entrepreneurial opportunities, and provides decision-making references for the enhancement of digital innovation capabilities of science and technology enterprises.

Details

European Journal of Innovation Management, vol. 26 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 31 January 2024

Shan Wang, Ji-Ye Mao and Fang Wang

Digital innovation requires organizations to reconfigure their information technology infrastructure (ITI) to cultivate creativity and implement fast experimentation. This…

Abstract

Purpose

Digital innovation requires organizations to reconfigure their information technology infrastructure (ITI) to cultivate creativity and implement fast experimentation. This research inquiries into ITI generativity, an emerging concept demoting a critical ITI capability for organizational digital innovation. More specifically, it conceptualizes ITI generativity across two dimensions—namely, systems and applications infrastructure (SAI) generativity and data analytics infrastructure (DAI) generativity—and examines their respective social and technical antecedents and their impact on digital innovation.

Design/methodology/approach

This research formulates a theoretical model to investigate the social and technical antecedents along with innovation outcomes of ITI generativity. To test this model and its associated hypotheses, a survey was administered to IT professionals possessing knowledge of their organization's IT architecture and digital innovation performance. The dataset, comprising responses from 140 organizations, was analyzed using the partial least squares technique.

Findings

Results reveal that both dimensions of ITI generativity contribute to digital innovation performance, with the effect of DAI generativity being more pronounced. In addition, SAI and DAI generativities are driven by social and technical factors within an organization. More specifically, SAI generativity is positively associated with the usage of a digital application services platform and IT human resources, whereas DAI generativity is positively linked to the usage of a data analytics services platform, data analytics services usability and data analytics human resources.

Originality/value

This research contributes to the literature on digital innovation by introducing ITI generativity as a crucial ITI capability and deciphering its role in digital innovation. It also offers useful insights and guidance for practitioners on how to build ITIs to achieve better digital innovation performance.

Open Access
Article
Publication date: 22 June 2022

Ziyu Jiang, Guojian Ma and Wenyue Zhu

The purposes of this paper are to analyze whether digital finance can contribute to enterprises' innovation performance and to determine the mediating effect of government…

4886

Abstract

Purpose

The purposes of this paper are to analyze whether digital finance can contribute to enterprises' innovation performance and to determine the mediating effect of government subsidies.

Design/methodology/approach

This paper empirically examines the impacts of digital finance on enterprises' innovation performance by looking at Chinese companies listed on the SME and GEM boards from 2011 to 2018 to build an econometric model to test our hypotheses. The mediating effect of government subsidies, the moderating effect of financial constraints are examined, as well as shareholding of the largest shareholders in each selected company and the asset-liability ratio.

Findings

The results show that digital finance has a significant promotional effect on firms' innovation performance and that government subsidies play a partial mediating role in digital finance's contribution to firms' innovation performance. In addition, financial constraints and the shareholding of the largest shareholders in each selected company have a negative moderating effect on the relationship between government subsidies and firms' innovation performance. On the contrary, the asset-liability ratio is found to positively affect the relationship.

Originality/value

There has been limited research to date on the relationship between digital finance and firms' innovation performance, particularly with regard to the extent to which digital finance can influence innovation performance and the mechanisms for doing so. Therefore, it is of great significance to examine the relationship between digital finance and enterprises' innovation performance, which can also provide guidance for both the Chinese government and enterprises.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 11 May 2021

Wen Jun, Muhammad Hamid Nasir, Zahid Yousaf, Amira Khattak, Muhammad Yasir, Asad Javed and Syed Hamad Shirazi

The purpose of this study is to investigate how digital platforms capability, improvisational capability and organizational readiness directly affect innovation performance. This…

3836

Abstract

Purpose

The purpose of this study is to investigate how digital platforms capability, improvisational capability and organizational readiness directly affect innovation performance. This study also explores how organizational readiness acts as mediator.

Design/methodology/approach

This empirical study is based on quantitative research design. Data were collected from 647 managers of small and medium enterprises (SMEs) working in Pakistan. Correlations and regression techniques were used for analyses. The Preacher and Hayes technique, the Sobel test and Bootstrap techniques were used to test mediation effect.

Findings

The results reveal a significant and positive relationship of digital platforms capability, improvisational capability and organizational readiness with innovation performance. Organizational readiness fully mediates the relationships between digital platforms capability and innovation performance link as well as between improvisational capability and innovation performance link.

Originality/value

In the age of digital economy the achievement of innovation performance is very important for SMEs. Businesses are shifting from traditional operational activities to digitalization. This study is imperative to offer new realm of modern technologies by exploring the role of digital platform capability, improvisational capability and organizational readiness for achieving innovation performance in digital economy.

Article
Publication date: 22 April 2024

Fei Zhou and Songling Xu

This study aims to explore how the application of digital technology and information technology can help firms improve their innovation performance and examines the mediating…

Abstract

Purpose

This study aims to explore how the application of digital technology and information technology can help firms improve their innovation performance and examines the mediating mechanisms of supply chain agility and supply chain integration.

Design/methodology/approach

This study conducted a questionnaire survey of 320 business managers in an automotive cluster in China and analyzed the collected data using structural equations.

Findings

Digital technology applications (DTA) have a positive impact on innovation performance, while supply chain agility and integration mediate this impact. In addition, information technology applications (ITA) also has a positive impact on innovation performance, while supply chain agility and integration mediate between the two. Supply chain agility (SCA) and supply chain integration (SCI) significantly enhance the positive impact of technology adoption on firms' innovation performance.

Originality/value

This study confirms the impact of digital technology and information technology applications on innovation performance and explores the mediating role played by supply chain agility and integration.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 19 April 2024

Adeel Tariq, Muhammad Saleem Ullah Khan Sumbal, Marina Dabic, Muhammad Mustafa Raziq and Marko Torkkeli

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking…

Abstract

Purpose

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking capabilities in enhancing sustainable performance through knowledge workers’ productivity and digital innovation. It also examines the sequential mediating role of knowledge workers’ productivity and digital innovation on networking capabilities and SMEs’ sustainable performance relationship.

Design/methodology/approach

Data were collected from 308 knowledge workers in the information technology sector and analyzed using the Hayes Process Macro bootstrapping method to test the proposed hypotheses.

Findings

Results indicate that knowledge workers’ productivity and digital innovation individually and sequentially mediate the relationship between networking capabilities and SME’s sustainable (economic and environmental) performance, surprisingly, they do not act as a mediator between networking capability and SME’s social performance. SMEs should prioritize investments in the professional development of their knowledge workers through training and skill enhancement programs. This investment equips knowledge workers with the tools to effectively use the knowledge and resources acquired through networking. Thus, knowledge workers may improve performance by using these resources to tackle challenges.

Research limitations/implications

Although this research focused on this specific context, it is prudent to acknowledge that additional factors may also exert influence on sustainable performance within SMEs, factors that managers may consider when making decisions. Methodologically, the cross-sectional design of this research poses a potential limitation, as it does not allow for the complete elimination of endogeneity concerns. However, it is worth noting that scholars have endorsed the use of cross-sectional data in cases where management researchers aim to expand beyond well-documented and longitudinal data sets.

Practical implications

This research offers practical recommendations for SMEs to improve their sustainable performance through networking. SMEs should seek partnerships with complementary knowledge to improve operations and for other performance-oriented benefits.

Originality/value

This study adds significantly to the literature on sustainable SME performance by studying the interdependent effects of networking capabilities. It also represents the individual and sequential mediation mechanism that links networking capabilities to SME success through knowledge worker productivity and digital innovation.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 4 December 2018

Sabai Khin and Theresa CF Ho

Despite the growing importance of digital innovation conceptualized as innovative digital solutions that enable digital transformation of businesses across industries, empirical…

13311

Abstract

Purpose

Despite 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/approach

This 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.

Findings

The 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 implications

The 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/value

This 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.

Details

International Journal of Innovation Science, vol. 11 no. 2
Type: Research Article
ISSN: 1757-2223

Keywords

1 – 10 of over 37000