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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: 2 April 2024

Pedro Mota Veiga, Sandra Marnoto, Marta Guerra-Mota and Gadaf Rexhepi

The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and…

Abstract

Purpose

The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and their adoption of innovative business models. Additionally, the study investigates how the prior experiences of entrepreneurial failure may influence or moderate these relationships.

Design/methodology/approach

To address these research objectives, the study draws upon data obtained from the Flash Eurobarometer 486 survey, a comprehensive dataset that explores the challenges faced by 13,197 European MSMEs as they navigate the complexities of growth, the integration of sustainable business models and the incorporation of digital technologies. To test the proposed hypotheses, the research employs multivariate logistic regression analysis.

Findings

Digital capabilities are found to be positively associated with business model innovation, while integration into global value chains is linked to a higher likelihood of implementing new business models. Interestingly, entrepreneurial failure did not significantly influence the relationship between digital capabilities and the adoption of new business models. In contrast, entrepreneurial failure significantly moderated the impact of global value chain inclusion on business model innovation, particularly in MSMEs with a history of failure.

Originality/value

This article provides practical guidance to entrepreneurs and companies interested in enhancing their digital strategies and engagement in global value chains, considering the entrepreneurs' business histories.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 15 June 2021

Jing Li, Saide Saide, Mohd Nasir Ismail and Richardus Eko Indrajit

Business process management (BPM) has been discussed in much literature as a crucial approach to achieve firm-enterprise business performance, however in term of digital business

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Abstract

Purpose

Business process management (BPM) has been discussed in much literature as a crucial approach to achieve firm-enterprise business performance, however in term of digital business transformation to face the current digital enterprise business era, there is still much to be explored. Drawing sociotechnical perspective of ETHICS theory, the study develops and conceptualize information technologies/systems (IT/IS) proactive capability and socialization-codification knowledge process that produce business transformation process in digital-based era.

Design/methodology/approach

Of the 173 company-enterprise respondents in Indonesia, the authors empirically test and validate the conceptual model using structural equation model tool-SmartPLS and SPSS statistical. The enterprise respondents were manufactures industry, construction services, hardware and software, plantation and agriculture, financial and insurance services, and other retail trade.

Findings

The authors found different findings of mediating effect and direct relationship effect. Socialization knowledge process has directly influence IT/IS proactive capability and enterprise digital business transformation. Codification knowledge process has successfully support IT/IS proactive capability, but unsupported correlation on enterprise digital business transformation. Also, IT/IS proactive capability positively influence enterprise digital business transformation. Enterprise business process suffers when the firm transform their business process into digital-based only using codification knowledge practices because documented knowledge (codification type) is not strong enough to help company in the way of enterprise digital business transformation. Mediating role show IT/IS proactive capability is crucial approach for enterprise business transformation to maximize codification knowledge practices. The findings present one fully supported results of mediation role through IT/IS proactive capability. A stronger support for enterprise IT/IS strategy in company, a high opportunity for codification knowledge practices to improve the digital ways to transform the enterprise business process. In short, the results can guide enterprise managers on how to manage their knowledge resources and maximizing emerging technologies to achieve enterprise digital business transformation.

Research limitations/implications

The authors acknowledged that future studies would be worthwhile to create, develop and strengthen the model and its related foundation. Future research may try different concept/theory that applicable in enterprise digital business transformation. Also, an opportunity for future study is how enterprise digital business transformation in different context of industries with the current emerging technologies (e.g. IoT, big data, AI).

Originality/value

This study offers a theoretical and conceptual framework to the applicable digital-based within enterprise business transformation context. A knowledge/novel contribution of this study is the integration of a sociotechnical that highly relevant and drives enterprise digital business transformation. This study also is an effort to combine some areas such as business transformation strategy, knowledge-intensive business services, knowledge management and IT/IS.

Content available
Article
Publication date: 1 April 2022

Darlin Apasrawirote, Kritcha Yawised and Paisarn Muneesawang

This study aims to advance the understanding of digital marketing capability by conducting a comprehensive, systematic review of relevant literature at the firm level.

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Abstract

Purpose

This study aims to advance the understanding of digital marketing capability by conducting a comprehensive, systematic review of relevant literature at the firm level.

Design/methodology/approach

The study utilizes categorization and contextualization of qualitative methodologies to review the literature, using Scopus databases to collect 57 journals with 143 peer-reviewed papers as the main focus. The research gaps and DMCs were analyzed and synthesized and presented as collective categorization together with the proposed future direction framework.

Findings

This study proposed the relevance of digital marketing capabilities for businesses and the key measurement of business performance. The proposed dimensions of the digital marketing capabilities framework are to identify new research directions for both marketing and IT strands.

Originality/value

This study classify five main different themes in digital marketing incorporating with digital technologies (DTs) era and proposed relevance of digital marketing capabilities for businesses (B2C and B2B) and keys measurement of business performances.

Details

Marketing Intelligence & Planning, vol. 40 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 28 February 2024

Misbah Faiz, Naukhez Sarwar, Adeel Tariq and Mumtaz Ali Memon

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership…

Abstract

Purpose

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership capabilities influence business model innovation. Building on the dynamic capabilities view, we address this gap by linking digital leadership capabilities with business model innovation via managerial decision-making through provision of grants received by new ventures.

Design/methodology/approach

The study is cross-sectional research. Data have been collected utilizing purposive sampling from 313 founding members of new ventures in high-velocity markets, i.e. from Pakistan. SPSS has been used to conduct the moderated mediation analysis.

Findings

Digital leadership capabilities foster the business model innovation of the new ventures because they enable new ventures to capitalize on digital technologies and create new ways of generating value for the customers and themselves. Moreover, managerial decision-making mediates digital leadership capabilities and business model innovation relationship, whereas, grants moderate the indirect positive effect of digital leadership capabilities on business model innovation via managerial decision-making. The study generates initial evidence on the impact of digital leadership capabilities on business model innovation via managerial decision-making for new ventures. We advance knowledge on new ventures’ business model innovation by deep-diving into dynamic capabilities view and emphasizing digital leadership capabilities as a significant driver for business model innovation.

Originality/value

With the help of dynamic capabilities theory, this study analyzes how new ventures make use of digital leadership capabilities to promote business model innovation.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 June 2023

Tien Dung Luu

This study aims to investigate the logic between digital transformation and export performance by analysing a large sample of Vietnamese exporters. The theoretical model is…

Abstract

Purpose

This study aims to investigate the logic between digital transformation and export performance by analysing a large sample of Vietnamese exporters. The theoretical model is further extended by investigating the driving role of digital transformational leadership and mediating effects of firm digital capabilities and employee exploration and exploitation innovation.

Design/methodology/approach

The study sample comprised 364 middle managers at 107 export firms in Ho Chi Minh City, Vietnam. The data are analysed using a partial least square-structural equation model (PLS-SEM).

Findings

Digital transformation may be an indispensable tool for enhancing the export performance of businesses. Moreover, digital transformational leadership may drive digital transformation through the mediating mechanisms of firm digital capabilities and employee exploration and exploitation innovations to achieve high export performance.

Originality/value

This initial study contributes significantly to international business theory through the lens of dynamic capabilities theory, which reveals the role of digital transformation in export performance via mechanisms of digital transformational leadership, firm digital capabilities and employee exploration and exploitation innovation.

Article
Publication date: 13 March 2023

Yi-An Chen, Shiau-Ling Guo and Kuo-Feng Huang

This study aimed to explore the antecedents of small- and medium-sized enterprises (SMEs) internationalization and to compare the different resources required to enter different…

Abstract

Purpose

This study aimed to explore the antecedents of small- and medium-sized enterprises (SMEs) internationalization and to compare the different resources required to enter different geographical regions. This study adds to the discussion on internationalization from a resource-based view (RBV) and a focus on dynamic capability, especially the linkage with resources such as digital capability, domestic industrial networks and the business-to-business (B2B) model.

Design/methodology/approach

This study used secondary data collected by an SME association in 2020, using a logistic regression model to examine the hypotheses. The respondents were selected according to stratified random sampling.

Findings

Digital capability and the B2B model significantly and positively affect the likelihood of internationalization by SMEs, while domestic industrial networks were negatively correlated with this process. In addition, Taiwanese SMEs with high digital capability tend to expand to North America, Europe, Southeast Asia, Northeast Asia, Oceania and the Middle East. Smaller firms tend to develop in Southeast Asia, whereas larger firms opt to establish business in Oceania.

Research limitations/implications

A research limitation is the generalizability of the sample. Findings could be enhanced if future studies include more industries and draw comparisons among different industries or countries. Future studies could explore digital entrepreneurship from a global perspective.

Practical implications

Managers need to emphasize better the development of digital capabilities and skills for SMEs. With limited financial resources and workforce, SMEs can strengthen the competence in international markets by adopting a suitable business model. When SMEs join an association to expand SMEs foreign networks, the study suggests that SMEs carefully evaluate the characteristics of each industrial association first, given that some associations are domestic-oriented. As for public policymakers, a project grant can be used to provide digital capability training for SME employees and owners or promote building a B2B model when internationalizing.

Originality/value

The authors' findings fill the research gaps in RBVs of internationalization, especially in linking resources such as digital capability, domestic industrial networks and the B2B model. The outcomes of this research serve as a reference not only to policymakers for improving the current SME ecosystem, but also to business practitioners positioning themselves in this system.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 11 April 2023

Binh Tan Mai, Phuong V. Nguyen, Uyen Nu Hoang Ton and Zafar U. Ahmed

COVID-19 has made businesses increasingly dependent on technology to be competitive and efficient. Small and medium enterprises (SME) digitalisation and innovation research are…

Abstract

Purpose

COVID-19 has made businesses increasingly dependent on technology to be competitive and efficient. Small and medium enterprises (SME) digitalisation and innovation research are widespread. SME digital transformation and innovation require government policies, initiatives and assistance. How the government can help SMEs achieve these goals is unclear. So, this paper aims to investigate how government policy may assist Vietnamese SMEs to boost innovation performance and digital transformation.

Design/methodology/approach

The study will take a quantitative approach, with questionnaires distributed to 659 respondents from SMEs in Vietnam through snowball and convenience sampling procedures. The structural equational modelling method is used for data analysis.

Findings

The study indicated that government policies supported Vietnamese SMEs’ innovation and information technology (IT) capabilities. Government policy assistance also boosted IT capabilities and innovation. Furthermore, mediation effects show that digital transformation fully mediates the relationship between innovativeness and firm performance, whereas IT capabilities partially mediate this relationship.

Research limitations/implications

Further research that replicates the findings and analyses contextual heterogeneities between nations is advised because Vietnam’s pandemic setting was both similar and dissimilar.

Practical implications

The study demonstrated government-company interactions through supportive policy. It investigated whether SMEs seeking digital transformation and innovativeness might gain competitive benefits by implementing effective knowledge management and enhancing their IT capabilities.

Originality/value

A resource-based theoretical framework is extended to study how innovation, public policy and digital transformation for SMEs interact. The study confirms government policy strongly influences enterprises’ digital development. Specifically, the new mediating effects of IT capabilities and digital transformation are explored and provide new insights into the existing literature.

Details

International Journal of Organizational Analysis, vol. 32 no. 2
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 6 March 2024

Jianxin Zhu and Yu Jin

Digital technology is crucial to improving a firm’s core competitiveness. However, the existing research on the relationship therein shows heterogeneity. Using digital technology…

Abstract

Purpose

Digital technology is crucial to improving a firm’s core competitiveness. However, the existing research on the relationship therein shows heterogeneity. Using digital technology can enhance competitive advantage, which is crucial for enterprises and scholars. Thus, based on the digital technology affordance theory, this study explores the relationship between digital technology affordance and digital competitive advantage.

Design/methodology/approach

Survey data were collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and structural equation modelling were used to test the hypotheses. Specifically, we discuss the mediating role of digital business capability and the moderating role of organisational legitimacy.

Findings

Editability, association and visibility positively affect digital competitive advantage, and their coordination is strong. Further, they can help enterprises gain a competitive advantage through the mediating role of digital business capability (digital strategy, digital integration and regulation). However, the influence effect and action path differ per in different dimensions. Organisational legitimacy positively moderates the mediating effect of digital integration and regulation, and there is a moderated mediating effect. However, the moderating effect on the mediating effect of digital strategy is not significant.

Originality/value

Existing studies neglect the relationship between the coordination of digital technology functions and digital competitive advantage. This study provides a new theoretical explanation for an in-depth understanding of these issues. These findings promote the development of innovation theory and provide valuable insights for guiding the application of digital technology in enterprises.

Details

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

Keywords

Open Access
Article
Publication date: 2 November 2022

Ansgar Sakaya

This study aims to examine the impact of Covid19 on service ecosystem self-adjustment (SES_SA) and additionally to explore the mediating role of SES_SA on the relationship between…

Abstract

Purpose

This study aims to examine the impact of Covid19 on service ecosystem self-adjustment (SES_SA) and additionally to explore the mediating role of SES_SA on the relationship between the Covid19 pandemic and the development of digital service capability (DD_SC).

Design/methodology/approach

Data were drawn from 384 business people with the help of a survey questionnaire. The interrelation of the model was examined with the help of structural equation modeling (SEM) using bootstrapping measures in Smart-partial least square (PLS). Three constructs (Covid19, DD_SC and SES_SA) were found with the help of exploratory factor analysis (EFA). Convergent and discriminant validity were obtained through confirmatory factor analysis (CFA) using statistical package for the social sciences-analysis of a moment structures (SPSS-AMOS)-V.23.

Findings

There is a substantial impact of Covid19 on SES_SA and DD_SC. The investigation also discovered that SES_SA significantly impact DD_SC, whereas, Covid19 impact DD_SC indirectly through SES_SA. Age has a significant favorable influence on fear of Covid19.

Research limitations/implications

There is scant literature linking SES_SA and the DD_SC.

Practical implications

The study promotes understanding of the contribution of Covid19 and SES_SA in the DD_SC among business people to enhance value co-creation. Capitalizing on DD_SC will enhance customer experience, assist customers in decision-making, and foster digital economic growth.

Originality/value

It enlightens on the digital capabilities needed for creating and co-creating value. Most studies in this area are qualitative/conceptually based and have not studied this kind of interrelation. Hence, it’s the only quantitative study that has examined the inter-relations among Covid19, SES_SA and DD_SC using SEM. This study also offers comprehension of all theories used in this context by relating Covid19 effects to DD_SC.

Details

Digital Transformation and Society, vol. 1 no. 2
Type: Research Article
ISSN: 2755-0761

Keywords

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