Impact of digital technology usage on firm resilience: a dynamic capability perspective
ISSN: 1359-8546
Article publication date: 22 August 2023
Issue publication date: 2 January 2024
Abstract
Purpose
While the usage of digital technology can bring many operational improvements for firms, it is unclear whether it can effectively improve firm resilience to deal with supply chain disruptions caused by emergencies such as COVID-19. From a dynamic capability perspective, this study aims to investigate how digital technology usage can improve firm resilience in a rapidly changing and turbulent environment.
Design/methodology/approach
Based on the survey sample of 237 Chinese firms, the stepwise regression approach was used to examine the proposed research hypotheses.
Findings
The empirical evidence shows that digital technology usage has a U-shaped effect on firm resilience, and that effect is fully achieved by first affecting market acuity and then promoting resource reconfiguration. Moreover, the authors further found that the U-shaped association between digital technology usage and firm resilience is derived from the U-shaped association between digital technology usage and market acuity.
Originality/value
This study enriches the resilience literature by revealing the mechanism of digital technology usage’s effects rather than focusing on the role of specific digital technologies. This study also provides guidance for firms to develop effective digital technology usage strategies.
Keywords
Acknowledgements
This work is supported by the Major program of National Social Science Foundation of China (22&ZD082), National Natural Science Foundation of China (71771090, 72071080), Joint Funds of NSFC and Guangdong Province, China (U1901222), the Social Science Foundation of Guangdong, China (GD22CGL24), Guangdong Basic and Applied Basic Research Foundation, China (2021A1515011884, 2023A1515012529), Shaanxi Provincial Department of Education (22JK0120), and Shaanxi Provincial Federation of Social Sciences (2022HZ1204).
Citation
Ye, F., Ke, M., Ouyang, Y., Li, Y., Li, L., Zhan, Y. and Zhang, M. (2024), "Impact of digital technology usage on firm resilience: a dynamic capability perspective", Supply Chain Management, Vol. 29 No. 1, pp. 162-175. https://doi.org/10.1108/SCM-12-2022-0480
Publisher
:Emerald Publishing Limited
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