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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.

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.

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.

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.

Retailers have recently leveraged store-loyal customers’ store attachment to maintain customer relationships and motivate patronage intentions. However, the COVID-19 outbreak has driven customer migration from offline to mobile channels. Mobile retail applications (APPs) have been used by numerous retailers to reach their customers. Nonetheless, it has yet to be determined (1) whether store attachment can facilitate (or impede) the adoption of mobile retail APPs and (2) whether store-loyal customers will continue visiting offline stores in the post-pandemic era. To address these questions, we propose a theoretical account using integrated theories on trust transfer and store attachment.

We conducted multi-stage, longitudinal field surveys in two cities of mainland China: Beijing and Guangzhou. From two rounds of data collection, 237 and 103 responses were obtained in March 2022. Hypotheses were tested by partial least squares – structural equation modelling (PLS–SEM).

Results showed that customer trust in an offline retailer can be transferred to the retailer’s mobile APP at the pre-adoption stage, facilitating APP adoption. Notably, store-loyal customers who exhibited a strong attachment to the physical store of a retailer were more inclined to transfer their trust to the mobile APP of the retailer. This occurrence leads to an increased adoption rate, enhanced post-adoption satisfaction and increased inclination to continue (rather than discontinue) usage.

This study is the first to investigate the changes in store-loyal customers' shopping behaviour in the mobile retail era and in the post-COVID-19 pandemic recovery. Our findings elucidate the role of physical store attachment in the trust-transfer mechanism. Furthermore, store attachment may not prevent customers’ channel migration behaviour. Retailers may have to re-consider how to manage channel cannibalisation issues in the post-pandemic recovery.