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Article
Publication date: 30 March 2020

Hecheng Wang, Junzheng Feng, Hui Zhang and Xin Li

The purpose of this study is to verify whether digital transformation strategy (DTS) could improve the organizational performance and provide a comprehensive analysis for…

Abstract

Purpose

The purpose of this study is to verify whether digital transformation strategy (DTS) could improve the organizational performance and provide a comprehensive analysis for enterprises on the necessity of implementing digital transformation in the context of China and draw on the perspectives of “Skewed conflict,” “minority dissent theory” and “too-much-of-a-good-thing.” This study investigates the curvilinear moderating role of cognitive conflict between DTS and performance.

Design/methodology/approach

An empirical investigation was used to collect a large sample data of Chinese enterprises’ digital transformation. A multiple linear regression analysis with SPSS was used to test the proposed hypotheses such as the inverted U-shaped moderating effect of the cognitive conflict.

Findings

In the Chinese context, DTS has a positive relationship on the short- and long-term financial performance. Moreover, this relationship was moderated by cognitive conflict such that the relationship between DTS and short-term financial performance could be further enhanced under the moderate cognitive conflict; however, the relationship between DTS and long-term financial performance was considerably influenced for higher cognitive conflict.

Originality/value

Based on the co-evolution of the information technology/information system (IT/IS) and business strategy, this study clarified the relationships among DTS, digital strategy and business and information technology strategies. By focusing on corporate strategy, this study further examined the effect of digital transformation on both short- and long-term financial performance. To further reveal the micro-psychological mechanisms underlying the effect of DTS on organizational performance, this study confirmed the inverted U-shaped moderating effect of the top management team’s cognitive conflict. Therefore, this research provides a new theoretical perspective for future research in the field of IT/IS, DTS and digital strategy.

Details

International Journal of Conflict Management, vol. 31 no. 3
Type: Research Article
ISSN: 1044-4068

Keywords

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Article
Publication date: 4 June 2020

Renhuai Liu, Steven Si, Song Lin, Dean Tjosvold and Richard Posthuma

Abstract

Details

International Journal of Conflict Management, vol. 31 no. 3
Type: Research Article
ISSN: 1044-4068

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