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Open Access
Article
Publication date: 19 December 2023

Abdelhak Senadjki, Hui Nee Au Yong, Thavamalar Ganapathy and Samuel Ogbeibu

This study aims to investigate the impact of digital leadership (capabilities, experience, predictability and vision) and green organizational culture on firms' digital…

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Abstract

Purpose

This study aims to investigate the impact of digital leadership (capabilities, experience, predictability and vision) and green organizational culture on firms' digital transformation and financial performance. Additionally, the research aims to evaluate the mediating role of digital transformation in the relationship between digital leadership and firms' financial performance.

Design/methodology/approach

A purposive sampling technique was employed to identify and select individuals with relevant expertise and experiences in the field of digital transformation. A total of 164 responses were collected, and the questionnaire was designed based on a five-point Likert-type scale. The data were analyzed using SmartPLS 4 (Statistical Software for Structural Equation Modeling).

Findings

The findings indicate that digital leadership capabilities, experience, predictability and vision do not directly impact firms' performance. However, there is an indirect influence on firms' performance through digital transformation. While both digital transformation and green organizational culture (GOC) positively influence firms' financial performance, GOC, leader predictability and leader vision positively influence digital transformation. The results confirm that digital transformation mediates the relationship between capabilities, experience, predictability and vision and firms' financial performance.

Research limitations/implications

The study highlights that strategic capabilities can enhance value-added processes during digital transformation, contributing to sustainability in the digital era. Overall, this research significantly advances both theoretical understanding and practical applications in the context of digital leadership and its impact on firms. Limited digital transformation stages among Malaysian firms impact the research, with some entities cautious about data disclosure and having limited cooperation with researchers. Gathering data from diverse sources would have strengthened the findings and methodological rigor of this multilevel study. Despite these limitations, the research offers fresh insights into the role of GOC, different facets of digital leadership and their influence on digital transformation and financial performance. This enhances existing knowledge and challenges assumptions of the transformational leadership theory (TLT) framework.

Practical implications

The study opens the door to further research into distinct leadership components and their effects in a similar context. By highlighting the positive influence of capabilities, experience, predictability and vision on digital transformation, it expands the theoretical and empirical scope in the realm of digital leadership. These findings encourage critical examination, refinement and evolution of TLT, providing insights for leaders and managers as they navigate digitalization, financial performance and digital leadership within organizations. In an era of digital transformation, leaders play a central role in building a psychologically safe environment and nurturing digitally skilled teams capable of managing technological changes. Leaders should possess the digital capabilities, experience, vision and predictability necessary to drive digital transformation, mitigate potential threats and adapt to the dynamic digital landscape.

Social implications

These findings support government initiatives to accelerate digitalization and Industry 4.0 implementation. Collaboration between the government and private organizations is essential to create policies and practices that facilitate broad participation in digital transformation programs. Policymakers must adopt a proactive approach to address issues related to Internet accessibility, trade barriers, financing access and resource reallocation. These policies aim to ensure a high-quality and affordable digital infrastructure, cultivate trust in digital technologies and equip organizational leaders with the necessary digital skills.

Originality/value

This research provides valuable insights for practitioners to enhance firms' digital transformation. As a practical contribution, this study’s findings can inform how firms can better manage their key digital leadership resources and GOC to foster digital transformation and improve their financial performance.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 15 June 2020

Annika Steiber, Sverker Alänge, Swapan Ghosh and Dulce Goncalves

The digitization process has increased the pressure on large firms to transform. However, current frameworks on digital transformation are not well explaining what factors…

4621

Abstract

Purpose

The digitization process has increased the pressure on large firms to transform. However, current frameworks on digital transformation are not well explaining what factors contribute to, or hinder, a firm's digital transformation. Innovation diffusion theories could complement existing frameworks, and for this reason, the purpose of this paper is to expand the existing body of knowledge on what contributes to, or hinders, an industrial firm's digital transformation by applying a validated framework based on innovation diffusion theories on two pioneer cases: General Electric and Siemens EHR/Health Services.

Design/methodology/approach

The framework used in this paper is based on several years' empirical studies and iterative literature reviews on innovation diffusion theories. Further, each use case is based on literature reviews and unique empirical data, collected by the authors of this paper as a result of taking active part of respective company's multi-years transformation.

Findings

Common drivers of, and clear inhibitors to the two firms' transformation, were identified. The innovation diffusion framework was found to work very well in identifying those factors.

Research limitations/implications

The implications are that researchers better can analyze/explain a digital transformation of a firm, and business managers can better plan or improve their firms' transformation processes.

Originality/value

The theoretical contributions of this paper are two: first, complement existing frameworks with a validated framework for innovation diffusion; second, provide an extension of our body of knowledge on factors that contributes to, or hinders, industrial firm's digital transformation.

Details

European Journal of Innovation Management, vol. 24 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 20 September 2021

Daniel Ellström, Johan Holtström, Emma Berg and Cecilia Josefsson

The purpose of this paper is to identify sensing, seizing and reconfiguring routines of dynamic capabilities that enable digital transformation in firms.

18955

Abstract

Purpose

The purpose of this paper is to identify sensing, seizing and reconfiguring routines of dynamic capabilities that enable digital transformation in firms.

Design/methodology/approach

A qualitative approach is used. Representatives from a firm going through digital transformations are interviewed, and focus groups have been carried out with a consultancy firm experienced in giving advice to firms going through digital transformation.

Findings

Six routines identified as relevant specifically for digital transformation are identified. These are cross-industrial digital sensing, inside-out digital infrastructure sensing, digital strategy development, determination of enterprise boundaries, decomposition of digital transformation into specified projects and creation of a unified digital infrastructure.

Practical implications

The authors provide direction for managers on how to approach digital transformation. In relation to previous research, the authors provide more specific guidance regarding how to reconfigure the organization in digital transformation.

Originality/value

The paper uses a novel context for digital transformation and complements the very few studies available using dynamic capabilities to understand digital transformation.

Details

Journal of Strategy and Management, vol. 15 no. 2
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 9 May 2016

Amit Arora, Anshu Saxena Arora and K. Sivakumar

The purpose of this paper is to propose a relational view of supply chain management strategy (RSCMS) and its impact on organizational performance and examine the moderating role…

2700

Abstract

Purpose

The purpose of this paper is to propose a relational view of supply chain management strategy (RSCMS) and its impact on organizational performance and examine the moderating role of technological and market turbulences on these relationships.

Design/methodology/approach

The authors propose a conceptual model that links supply chain (SC) strategies to operational and relational outcomes of organizational performance. The authors follow an interdisciplinary approach by integrating insights from domains such as supply chain management (SCM), operations, marketing, management, management information systems, and technology management.

Findings

The proposed RSCMS framework presents 15 propositions that examine SCM strategies and their interrelationships, and examine how these strategies result in superior organizational performance.

Research limitations/implications

Through the RSCMS framework, the authors conceptualize transformation as a higher order SC strategy resulting from collaborative and integrative SCs, and tie the relational SC mix first to operational and relational outcomes and then to organizational performance.

Practical implications

The research provides a better understanding of SC strategies of collaboration, integration, and transformation, along with market and technological turbulences for more efficient and effective SCs.

Originality/value

In this research, the authors propose a unified RSCMS framework of SC mix strategies of collaboration, integration, and transformation and their influence on organizational performance; and explore how the RSCMS framework contributes to theory development, provide insights for managers, and explore avenues for further research.

Details

The International Journal of Logistics Management, vol. 27 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 26 July 2021

Abdullah Fahad AlMulhim

This study aims to explore the impact of digital transformation on firm performance with the help of smart technologies.

3872

Abstract

Purpose

This study aims to explore the impact of digital transformation on firm performance with the help of smart technologies.

Design/methodology/approach

This study used a valid and well-structured survey to collect data from 460 respondents from 150 Small and medium-sized enterprises (SMEs) in Saudi Arabia. In order to analyze this data, SmartPLS software was used.

Findings

The empirical results of this study found that the digital transformation has no significant direct impact on firm performance. Therefore, in this situation, smart technologies play an important role in developing the link between digital transformation and firm performance.

Originality/value

This study contributes to the digital supply chain from SMEs' perspective by investigating the mediating role of smart technologies between digital transformation and firm performance.

Details

Business Process Management Journal, vol. 27 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 2 April 2024

Changman Ren and Xiaoxing Lin

This research aims to examine the effects of corporate digital transformation on firm value, with a particular focus on the mediating roles played by cost leadership and…

Abstract

Purpose

This research aims to examine the effects of corporate digital transformation on firm value, with a particular focus on the mediating roles played by cost leadership and differentiation strategies.

Design/methodology/approach

This study employs word frequency analysis to create corporate digital transformation indicators and determine how corporate digital transformation impacts firm value. The data used in the analysis comes from 2,056 listed manufacturing enterprises in China between 2010 and 2019.

Findings

This study demonstrates that digital transformation has a favorable impact on firm value, and that cost leadership strategy and differentiation strategy significantly mediate the relationship between both of them.

Research limitations/implications

This study utilized word frequency analysis to assess the state of corporate digital transformation. It lacked a more thorough description of internal production processes, operational efficiency, and the pace of digital transformation.

Practical implications

The results of this study can not only promote the digital transformation and firm value, but also provide a theoretical basis for enterprises to choose a reasonable competitive strategy in the digital transformation.

Originality/value

This study contributes significantly to the field of firm value research by including digital transformation as a fundamental component. Furthermore, it investigates how cost leadership strategy and differentiation strategy play mediating roles, providing a new perspective and explanatory mechanism for understanding the influence of digital transformation on firm value.

Details

Industrial Management & Data Systems, vol. 124 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 April 2024

Yaru Yang, Yingming Zhu and Jiazhen Du

The purpose of this paper is to investigate the impact of the COVID-19 pandemic on company innovation, specifically centering on the quantity and quality of innovation. The paper…

Abstract

Purpose

The purpose of this paper is to investigate the impact of the COVID-19 pandemic on company innovation, specifically centering on the quantity and quality of innovation. The paper aims to provide a comprehensive understanding of whether the epidemic inhibits innovation and the role of digital transformation in mitigating this negative impact.

Design/methodology/approach

The paper uses a quasi-experimental study of the COVID-19 pandemic and constructs a differential model to analyze the relationship between the epidemic and firm innovation in three dimensions: total, quantity and quality. The paper also uses a difference-in-difference-in-differences model to test whether digital transformation of firms mitigates the negative impact of the epidemic and its mechanism of action.

Findings

The results show that COVID-19 significantly reduced the overall level of firm innovation, primarily in terms of quantity rather than quality. Furthermore, this study finds that digital transformation plays a pivotal role in mitigating the pandemic’s adverse impact on innovation. By addressing financing constraints and countering demand insufficiency, digital transformation acts as a catalyst for preserving and fostering innovation during and after the pandemic.

Originality/value

This study extends the current research on the pandemic’s impact on firm innovation at the micro level. It offers valuable insights into strategies for fostering digital transformation among Chinese enterprises in the post-pandemic era.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 29 April 2024

Yuxue Chen and Yuqian Zhang

This study aims to investigate the influence of digital transformation on the overall financial performance of firms, with a specific focus on Chinese-listed companies from 2010…

Abstract

Purpose

This study aims to investigate the influence of digital transformation on the overall financial performance of firms, with a specific focus on Chinese-listed companies from 2010 to 2021. It seeks to understand the impacts on various accounting and financial indicators in emerging economies such as China.

Design/methodology/approach

This study employs a text-mining approach to construct a digital transformation index based on the data sample of 11,814 firm-year observations from China’s A-share listed companies. This index serves as a proxy to measure the extent of digital transformation and its impact on financial performance and health.

Findings

The findings indicate that digital transformation significantly enhances overall financial performance and health, as evidenced by increased profitability, reduced operational costs, and lowered financial risks. The study reveals a time-lagged effect, where the benefits of digital transformation become more apparent after about one year. Further analysis shows that the value of digital transformation is more evident in a firm’s asset items. This raises the possibility of recognising the by-product, such as data resources, in the digital transformation process.

Originality/value

This research offers a unique contribution by linking digital transformation to financial performance using a large dataset from China's A-share listed firms. Doing so enhances our understanding of the tangible effects of digital transformation on corporate performance. Furthermore, this research provides valuable insights for the advancement of future accounting practices and the development of standards.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 14 November 2023

Xiaohui Xu and Yi Liu

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the…

Abstract

Purpose

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Design/methodology/approach

This study uses data from Chinese A-share listed companies from 2001 to 2021 and employ panel fixed model and moderating effect model to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Findings

The findings of this study reveal that managerial short-termism exerts negative influence on green innovation. Digital transformation enables firms to reduce the adverse effect of managerial short-termism on green innovation because digital transformation enhances information processing ability and then improves internal corporate governance and analyst coverage. Moreover, the moderating role of digital transformation is more prominent for firms with lower internal corporate governance, for firms with less analyst coverage and for non-state-owned enterprises.

Originality/value

This paper intends to address the following two questions: what is the impact of managerial short-termism on green innovation and what is the role of digital transformation in the two variables’ association? By using data of Chinese A-share listed companies from 2001 to 2021 and developing two individual indexes to measure managerial short-termism and digital transformation, the authors empirically test these above two questions. The results of this study indicate that: First, drawn on time-oriented theory and upper echelon theory, managerial short-termism has an adverse effect on firms’ green innovation. Second, digital transformation enables firms to reduce the negative effect of managerial short-termism on green innovation. Furthermore, the moderating mechanism tests show that the corporate governance effects of digital transformation play a supervisory role that impels managers to reduce short-term investments and promote firms’ green R&D investments, which helps to reduce the negative effect of managerial short-termism on green innovation. Additionally, the heterogeneity checks show that the moderating role of digital transformation in the relation between managerial short-termism and green innovation is more prominent for firms with lower internal corporate governance, with less analyst coverage and for non-state-owned enterprises.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 17 no. 3/4
Type: Research Article
ISSN: 2071-1395

Keywords

Article
Publication date: 21 August 2023

Peng Yang, Xiuzi Hao, Liang Wang, Shizhao Zhang and Li Yang

Amidst the rapid development of the global digital economy, digital transformation has become a strategic choice that firms must use to respond to the changing times. This study…

Abstract

Purpose

Amidst the rapid development of the global digital economy, digital transformation has become a strategic choice that firms must use to respond to the changing times. This study analyzes the impact of digital transformation on corporate environmental, social and governance (ESG) performance.

Design/methodology/approach

This study analyzes the impact of digital transformation on corporate ESG performance.

Findings

Using panel data from Chinese A-share-listed companies from 2010 to 2019, the authors found that digital transformation has a positive impact on corporate ESG performance, especially for high-tech firms and state-owned firms. In particular, the authors find that the digital production and digital marketing exert a positive effect on corporate ESG performance. Mechanism tests showed that digital transformation helps promote corporate green innovation, improve information transparency and improve corporate governance, thus enhancing ESG performance. A moderating effect analysis revealed that the positive impact of digital transformation on ESG performance is more significant in firms with government subsidies and chief executive officers (CEOs) with rich career experience.

Originality/value

Most existing research has confirmed the positive effect of digital transformation on firms' financial performance, whereas fewer studies have focused on the impact of digital transformation on the non-financial performance of firms.

Details

Kybernetes, vol. 53 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of over 50000