Aligning with new digital strategy: A dynamic capabilities approach

Linking digital leadership and employee digital performance in SMEs in China: The chain-mediating role of high-involvement human resource management practice and employee dynamic capability

Background

In the digital era, the role of digital leadership is becoming increasingly prominent. However, the exploration of the alignment between digital leadership and high-involvement human resource management practices (HI-HRMPs) in influencing employee-based resources remains an overlooked research area among current scholars.

Objective

This study aims to analyze the influence of these elements on the digital performance of employees. Based on the Resource-Based View (RBV) and Dynamic Capability Theory (DCT), this research focuses on Chinese Small and Medium Enterprises (SMEs) and employs purposive sampling to select four representative regions in China (Shanghai, Guangzhou, Guizhou, and Anhui). The survey targeted employees within SMEs and was conducted using questionnaire surveys. Structural equation modeling (AMOS) is utilized for analysis.

Results

The findings indicate that: (1) digital leadership cannot directly influence employee digital performance and employee dynamic capability but can directly influence HI-HRMP; (2) HI-HRMP mediate the influence of digital leadership on employee digital performance, but employee dynamic capability cannot mediate the influence of digital leadership on employee digital performance; (3) HI-HRMP and employee dynamic capability play a chain mediating role between digital leadership and employee digital performance.

Conclusion

In the digital market, digital leadership improves employee digital performance by boosting HI-HRMP and enhancing employee dynamic capabilities. The findings support studies on practical applications and link between digital leadership and employee digital performance. The uniqueness of this study lies in applying HI-HRMP and employee dynamic capabilities as chain mediating variables in the digital market. This approach extends the application of HRMPs and dynamic capability theory, providing theoretical guidance and decision support for the digital operations of SMEs.

Top of tide: Nexus between organization agility, digital capability and top management support in SME digital transformation

In the swiftly evolving business landscape, digital transformation (DT) has emerged as a crucial strategy for firms to gain a competitive edge. Despite the abundance of literature on DT in firms, there remains a dearth of empirical research that defines and analyzes crucial antecedents of small and medium-sized enterprises' (SMEs) DT from an internal perspective. To fill this research gap, this study examines the correlation between organizational agility and digital capability in cultivating SMEs' DT while also evaluating top management support as a moderating variable through the lens of internal factors of SMEs. The results indicate that both organizational agility and digital capability have a positive impact on SMEs' DT, with organizational agility significantly influencing digital capability. Furthermore, the findings highlight that digital capability serves as a mediator between organizational agility and SMEs' DT. In addition, top management support plays a moderating role in these relationships to a certain extent. Additionally, we explicate the concept of digital capabilities from the perspective of dynamic capability. Our study contributes to an enhanced understanding of the effect of organizational agility and digital capability on SMEs' DT, as well as the role of top management support. We provide recommendations for managers to enhance organizational agility and suggest that SMEs should improve their digital thinking to better perceive digital technology changes, enhance digital operation capabilities, and better integrate digital resources.

Driving forces of digital transformation in chinese enterprises based on machine learning

With advanced science and digital technology, digital transformation has become an important way to promote the sustainable development of enterprises. However, the existing research only focuses on the linear relationship between a single characteristic and digital transformation. In this study, we select the data of Chinese A-share listed companies from 2010 to 2020, innovatively use the machine learning method and explore the differences in the predictive effects of multi-dimensional features on the digital transformation of enterprises based on the Technology-Organization-Environment (TOE) theory, thus identifying the main drivers affecting digital transformation and the fitting models with stronger predictive effect. The study found that: first, by comparing machine learning and traditional linear regression models, it is found that the prediction ability of ensemble earning method is generally higher than that of tradition measurement method. For the sample data selected in this research, XGBoost and LightGBM have strong explanatory ability and high prediction accuracy. Second, compared with the technical driving force and environmental driving force, the organizational driving force has a greater impact. Third, among these characteristics, equity concentration and executives' knowledge level in organizational dimension have the greatest impact on digital transformation. Therefore, enterprise managers should always pay attention to the decision-making role of equity concentration and executives' knowledge level. This study further enriches the literature on digital transformation in enterprises, expands the application of machine learning in economics, and provides a theoretical basis for enterprises to enhance digital transformation.

Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate

While dynamic capabilities have been described as crucial for achieving organizational performance in dynamic environments, there has been limited scholarly distinction between dynamic capabilities and employee dynamic capabilities (EDC), especially in the digital era. Consequently, a knowledge gap has emerged. To address this void, this paper aims to investigate the driving factors of EDC and their impact on employee digital performance (EDP). Simultaneously, incorporating the competitive climate (CC) as a moderating variable between employee dynamic capabilities and employee digital performance addresses theoretical gaps in specific regions in China, particularly in small and medium-sized enterprises (SMEs). This study utilizes survey data from SMEs in four Chinese provinces: Shanghai, Guizhou, Guangdong, and Anhui. It employs CB-SEM (AMOS) to analyze the new conceptual framework. Firstly, the research uncovers that the positive relationship between digital capabilities and employee digital performance necessitates employee dynamic capabilities as a mediator. Secondly, there exists a direct and indirect relationship between organizational learning and employee digital performance. Finally, this study discerns that the competitive climate moderates the relationship between employee dynamic capabilities and employee digital performance. This finding demonstrates remarkable alignment with the competitive culture in specific regions of China. The research results encourage SMEs to seize the opportunities presented by emerging digital technologies and industry digitization trends. They should commit to embracing new digital technologies, enhancing digital capability, strengthening organizational learning, fostering a positive competitive climate, and focusing on the development of employee dynamic capability to enhance their competitive edge. The findings of this research contribute not only to academic inquiry but also furnish pertinent decision-making references for relevant departments.

Can digital transformation reduce corporate stock price crashes?

PURPOSE

The purpose of this paper is to study the impact of enterprises' digital transformation on the risk of stock price crashes, but also to study the mediating role of enterprises' financialization and accounting conservatism in the enterprises' digital transformation on stock price crash risk.

DESIGN/METHODOLOGY/APPROACH

Based on the data of 2,599 listed companies in China from 2010 to 2019, this paper constructs indicators of enterprise digital transformation through word frequency analysis method, and uses fixed-effects model and mediated-effects model to explore the impact and mechanism of enterprise digital transformation on the stock price crash risk.

FINDINGS

This study shows that firms' digital transformation reduces the risk of stock price crashes and that financialization of firms and accounting conservatism play a significant mediating effect between enterprises' digital transformation and the risk of stock price crashes.

ORIGINALITY/VALUE

This study enriches the study of stock price crash risk by including digital transformation in the field of stock price crash research, and it examines the mediating roles of financialization of enterprises and accounting conservatism, which provides a new explanatory mechanism to the study of the correlation between digital transformation of enterprises and the risk of stock price crash.

How flexible leadership ability affects manufacturing enterprises' digital transformation willingness: The role of innovation commitment and environmental dynamics

Existing studies have recognized the significance of leadership ability on enterprises' digital transformation. However, few of them pay attention to the mechanism of flexible leadership ability (FLA) on digital transformation willingness (DTW). This study aims to explore the influence mechanism of FLA on DTW based on the ability-behavior-purpose logical framework. Survey data is collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and PROCESS Macro methods are used for hypothesis testing. This study mainly discusses the impact of FLA on DTW, as well as the mediating role of innovation commitment (IC) and the moderating role of environmental dynamics (ED). Results show that FLA promotes DTW directly (β = 0.574, p<0.001) and indirectly, that is, through IC (the main effect decreased from (β = 0.574, p<0.001) to (β = 0.40, p<0.001). Additionally, the moderating role of ED affects the direct path of FLA on DTW (β = 0.167, p<0.001) as well as the two indirect paths (β = 0.196, p<0.001; β = 0.104, p<0.01). The findings contribute to the advancement of flexible leadership theory, and provide practical advice for enterprises on how to implement digital transformation.

The role of digitalization in business and management: a systematic literature review

Digitalization is a powerful engine for economic growth in the world. In 2018, digitally transformed firms represented 13.5 billion US dollars of global GDP and, towards the end of 2023, they are expected to represent 53.3 billion US dollars, over half of the general nominal GDP (Statista, Nominal GDP driven by digitally transformed and other enterprises worldwide 2018–2023. https://www.statista.com/statistics/1134766/nominal-gdp-driven-by-digitally-transformed-enterprises/, 2022). The main objective of this study is to provide information (highlighting principal research topics and research agendas) from the literature on state-of-the-art digitalization within firms through a Systematic Literature Review (SLR). In all, 119 review articles on the most mature functional areas of the firm are analyzed: management, marketing, and finance and accounting, published in the WOS over the period 2018-April 2022. In this study, key relevant tendencies are identified in the most mature areas of the firm, which are the impact of digital technologies on the analysis of consumer behavior; digitalization and green innovation within organizations; and blockchain technology applied to financial services. The main contributions of this work are as follows: (1) to provide the most complete and up-to-date review of digitalization from a global perspective, summarizing the current state of knowledge within an integrated framework; (2) to reduce the complexity of digitalization by offering structure and clarity; and (3) to offer links between digitalization and established points of view in the literature on management, marketing, finance, and accounting. The novelty of this paper is centered on a joint analysis of digitalization, digital transformation, and digital technologies, taking into account the most mature functional areas of the firm.

Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective

The direct influence of digital platforms on organizational efficiency, financial performance, and strategy attracts the close attention of researchers. The complex mechanisms and pathways of digital platforms on transformation capacity, however, are still unclear at the global and Asia Pacific levels. Drawing on dynamic capability theory, we empirically explore how digital platforms augment organizational innovation performance. We advance the current literature on digital platforms by finding that digital platform capability boosts an organization’s dynamism and innovation performance. Furthermore, we extend the literature by revealing that, indirectly, innovation capability and strategic alignment have a substantial influence over digital platform capability and innovation performance. Finally, the study formulates a conceptual model from a dynamic capability perspective, rather than from a resource-based view, and test it using the responses collected from 153 Pakistani manufacturing firms.

Digital “x”—Charting a Path for Digital-Themed Research

We live in a time when digital technologies reshape most aspects of business and social life. This challenges received assumptions about modes of operation in organizations. As a result, scholars and practitioners increasingly use the label “digital” to signify that something has changed to the extent that a plethora of long-established management concepts are expressed in a new formulaic form of “digital x,” and x can stand for innovation, strategy, transformation, infrastructure, etc. In the information systems discipline and beyond, “digital” has emerged as an oft-used conceptual label to characterize age-long phenomena hitherto described by the IT (or x) label. There is a sense among academic and practitioner communities that digital and IT are not mere synonyms, but beyond the hype, something fundamentally different is being signaled when the “digital” label is invoked. This paper traces the intellectual roots and foundations of the growing use of “digital” as a conceptual label, identifies when the label use is warranted as well as outlines implications that the moniker holds for future scholarship, policy, and practice. In particular, the paper offers actionable guidance that enables more reflective use of the term “digital” as we move forward.

Digital transformation, industrial structure change, and economic growth motivation: An empirical analysis based on manufacturing industry in Yangtze River Delta

China is in a critical stage of economic growth mode transformation. The digital transformation of the manufacturing industry may create new impetus and new models for economic growth. Taking the manufacturing industry of 25 prefecture-level cities in the Yangtze River Delta region as the research object, we explore the digital transformation process of the manufacturing industry and verifies its theoretical mechanism of promoting economic growth through the industrial structure. A panel model based on the improved Feder two-sector model and a multiple mediating effect model are established to explore the dynamic mechanism of manufacturing digital transformation to promote economic growth through industrial restructuring. The results show that the digital transformation of the manufacturing industry in the Yangtze River Delta region of China is relatively high, and the speed of digital transformation has been accelerating in recent years. The digital transformation of the manufacturing industry can promote the change in industrial structure and form a new driving force for economic growth. The key is to improve the level of industrial structure and extend the length of the industrial chain. Based on these, we propose measures to promote the transformation and upgrading of industrial structure for the sustainable development of China's economy.

Firms’ dynamic capabilities and supply chain risk management: a B2B perspective

Purpose

This study examines the relationships between collaboration capability (CC) and supply chain risk management (SCRM) and the mediating role of supply chain alignment (SCA) between CC and SCRM. It also investigates the moderating role of data-driven culture (DDC) on the path joining CC and SCA.

Design/methodology/approach

A survey was conducted via a structured questionnaire among the 297 managers of Business-to-business (B2B) firms. The data were analyzed using partial least squares structural equation modeling (PLS-SEM).

Findings

The result found a positive and significant relationship between CC and SCRM, CC and SCA, and SCA and SCRM. The research found a significant mediating role of SCA between CC and SCRM. The study also found a significant moderating role of DBC between CC and SCA.

Practical implications

The outcomes demonstrate the management and societal relevance of the study from the viewpoint of businesses in developing nations. To cope with dynamic shifts, managers and decision makers need to take initiative for collaboration among the supplier, to align with their supply chain operations and enhance preparedness of DDC to overcome supply chain-related risks in the future.

Originality/value

The results of this empirical study have the significant potential to provide valuable guidance and insights about the B2B firms’ CC to develop SCA to enhance SCRM as risk management for the supply chain can aid in loss prevention and provide an edge over competitors. To the best of the authors’ knowledge, these relationships based on the dynamic capability view (DCV) add to existing studies on B2B firms’ supply chains in a novel way.

Effects of Digital Transformation on Environmental Governance of Mining Enterprises: Evidence from China

Digitization offers fresh impetus to the transformation and upgrading of mining enterprises, while on the other hand, the rapid development and broad application of digital technologies make the environmental governance of mining enterprises the most important themes of theoretical research and practical exploration. In this paper, A-share companies listed between 2007 and 2020 are taken as samples to study the influence of digital transformation on the environmental governance of mining enterprises, and its relative acting paths. Our main research methods are multiple linear regression analysis, the panel fixed-effect model and the intermediary effect model. The results show that digital transformation significantly improves the environmental governance of mining enterprises, which is still tenable even after going through a series of endogeneity and robustness tests. It is found via the path test that, by strengthening the supervision of the media, the digital transformation performed in mining enterprises helps improve their environmental governance level, but the comparability of the accounting data shows no significant mediation effect between digital transformation and environmental governance. The heterogeneity test found that the promotion of digital transformation in environmental governance was significant only in non-state-owned enterprises, large-scale enterprises, and mature-growth enterprises. The findings enrich studies on the economic consequences and the environmental governance influences brought by mining enterprise's transformation based on advanced technologies. This provides an important reference and is of great heuristic significance in promoting digital transformation and strengthening the environmental governance of mining enterprises.

The contribution of organizational culture, structure, and leadership factors in the digital transformation of SMEs: a mixed-methods approach

Contributing to the scarce literature on how companies can deal with their business model of digital transition, this work explores the digital transformation (DT) process in small and medium enterprises (SME), investigating how organizational culture, structure, and leadership influence it. While such three factors are deemed essential components to facilitate DT, how they operate and how they relate to each other are still not very well-defined issues in need of in-depth investigation. This study employed a mixed-methods approach, following an exploratory sequential design. First, a conceptual model was developed based on qualitative data collected from expert interviews and analyzed through grounded theory. This stage uncovered 25 first-order concepts about culture, structure, and leadership, further organized into 6 constructs and hypothesis paths. Then, with a sample of 192 SMEs, the structural model was measured and validated using exploratory factor analysis and PLS-SEM. As a result, our study offers robust and timely research, whose conceptual model condenses a knowledge corpus that future research can benefit from, and it provides statistical extrapolations about how and how much those factors relate to each other in SME context; moreover, given the traditional scarce resources and lack of flexibility in SMEs, it provides orientation and guidelines to managers facing DT and needing to understand the organizational factors they should be aware of, where to focus energy, and what to expect as results. From a large-scale perspective, this study carries an impactful contribution to the many countries where SMEs play a major economic and social role.

To digitalize or not? Navigating and merging human- and technology perspectives in production planning and control

Contemporary manufacturing companies are navigating industrial digitalization anticipating increased production efficiency and competitiveness in a volatile environment. This study focuses on the implementation processes of digital tools for production planning and control (PPC), i.e., advanced planning and scheduling (APS) software, in relation to the application of analog planning with physical flow boards. Digital tools can support understanding the consequences of production changes and variations, hence facilitating adaptable and resilient manufacturing. However, technological changes can be daunting, and effective implementations require dynamic capabilities to remain competitive in elusive environments. The aim is to study the implementation processes of an APS software to understand the requirements of fruitfully moving from analog planning to next-generation digital tools for decision support in PPC. The paper presents an explorative case study, at a manufacturing company within the energy sector. The interview study took place over 9 months during 2020-2021, investigating current and retrospective aspects of the case across 2019-2021. The case study comprises 17 in-depth interviews with a range of company employees, e.g., logistics managers and functions responsible for digitalization development. The results highlight the challenges of implementing and especially trusting digital tools for PPC. To realize the value of digital tools for PPC, it is argued that it is imperative to simultaneously apply a human-centric perspective in decision making to ensure trustworthy, sustainable, and resilient human-data-technology nexus implementations towards smart manufacturing.

Unravelling the Potential of Digital Servitization in Sustainability-Oriented Organizational Performance—Does Digital Leadership Make It Different?

This research proposed and enhanced a statistically reliable paradigm for determining the impacts of the role of digital servitization (DS) as a potential facilitator of sustainable and smart service innovation ecosystem (SSSIE) establishment and sustainability-oriented organizational performance (SOOP) improvement. Additionally, this research aimed to cast light on the role of digital leadership (DL) as a moderator of the hypothesized model. Structural equation modeling and multigroup analysis (MGA) were employed to process and analyze the data procured from a cross-sectional convenience sample of 412 respondents representing various public service sector organizations (PSSOs). The statistical outcomes corroborated that DS was positively and significantly correlated to SSSIE establishment, and at the same time, SOOP was significantly intensified by DS and SSSIE. Next, the nexus between DS and SOOP was enhanced when SSSIE was operationalized. Lastly, the MGA analysis confirmed that all of the coefficients in the proposed model were statistically significantly different under the moderating effect of DL. These obtained findings could bring numerous valuable in-depth insights for practitioners and policymakers in digital initiatives management and governance.

Influence of Digital Transformation Capability on Operational Performance

With the changes in market environments and the development of digital technology, enterprises urgently need to develop the capability to adapt to profound changes in strategy and business processes. Some previous research regarded a digital marketing capability as a digital transformation capability, but other research explained the importance of digital competence to enterprises, from the perspective of resource allocation. However, they could not explain the phenomenon of enterprises on the usage of advanced digital technology to build the capability to refresh or replace the business model and the value creation process. This study constructed the dimensions of a digital transformation capability that contains three hub-factors (sensing, organizing, and restructuring) under the dynamic capability theory. This study collected 162 sets of enterprise data through a survey, and investigated the relationships of an enterprise’s strategy orientation, digital transformation capability, and operational performance by using SPSS and SmartPLS 3. The results show that strategic orientation has a positive impact on a digital transformation capability, and that digital transformation capability has a positive impact on operational performance. In addition, the digital transformation capability plays a mediating role between strategic orientation and operational performance. Doubtlessly, enterprises need to focus on building their own digital transformation capabilities to create new enterprise value. A digital transformation capability will encourage enterprises to integrate their business processes and routines through digital technology to achieve a competitive advantage.

Enhancing Digital Innovation for the Sustainable Transformation of Manufacturing Industry: A Pressure-State-Response System Framework to Perceptions of Digital Green Innovation and Its Performance for Green and Intelligent Manufacturing

Low carbon and digitalization are the general trends of manufacturing upgrading and transformation. Digital technology enables the whole process of green manufacturing and breaks down the spatial barrier. To achieve the dual carbon goals, the pressure-state-response (PSR) model, in which digital technology enables the green innovation of the manufacturing industry, was theoretically analyzed in this study. The measurement system of the digital green innovation (DGI) in the manufacturing industry was constructed according to the PSR framework. An evaluation model based on the analytic hierarchy process and the deviation maximization technique for order preference by similarity to an ideal solution method was constructed to measure the level of DGI. The results of this study from Chinese manufacturing are as follows. (i) The measurement system of the level of DGI in manufacturing industry includes a pressure system, state system and response system. (ii) In the past five years, the comprehensive index of the DGI in manufacturing industry has generally shown a trend of fluctuating rise. There are overall low and unbalanced phenomena in all regions. The gap decreased from 0.1320 to 0.1187, showing a gradually narrowing trend. (iii) Compared with other regions, the composite index of DGI is generally higher in the regions with a better ecological environment in the east and a more developed economy in the north. State parameters are higher than pressure and response parameters in most areas. (iv) Compared with other regions, the composite index of DGI in western and southern regions is lower, and the parameters of pressure, status and response are basically coordinated. (v) The application degree of digital technology, the emission intensity of waste water/exhaust gas of output value of one hundred million yuan and the expenditure intensity of digital technology adopted by enterprises are the key influencing factors of DGI in the manufacturing industry. This study not only proposed an evaluation index system of the digital green innovation level, but also puts forward policy guidance and practical guidance of digital technology to accelerate the green and intelligent manufacturing industry.

The Impact of Digital Capability on Manufacturing Company Performance

Digital capability is an advanced capability that manufacturing companies need for their digital and intelligent development. At present, the influence mechanism behind the impact of digital capability on manufacturing companies’ performance is still unclear and lacks quantitative analysis. Based on the dynamic capability view, we propose a research model to investigate digital capability, digital innovation, value co-creation, and company performance and conduct an empirical study based on questionnaire data from 209 digital manufacturing companies. The empirical results show that digital capability has a significant positive impact on company performance. The results further show that digital innovation mediates the effect of digital capability on performance within a company, while outside the company, value co-creation mediates the impact of digital capability on company performance. This research provides empirical support in favor of companies developing digital capabilities in the context of digital transformation and offers theoretical insight into the contradiction between the potential value of digital capability and companies’ practice.

Turnover at the Top: The Digital Transformation and Dismissal of Chairman and CEO

Companies increasingly implement digital transformation strategies to promote efficiency. Nevertheless, there are few concerns about employees' acceptance of the changes, especially the executives' adaptability, which is an important part of digital transformation strategy implementation. By utilizing the "searching-matching" in keywords of the annual reports of public listed companies in China, we measured the degree of corporate digital transformation to analysis its influence on the turnover rate of the Chairman and CEO. We found that digital transformation decreases the possibility of Chairman and CEO's turnover. Derived from the dynamic managerial capital theory, we demonstrated that executives' social network and political connections both have a moderate effect on the relationship between digital transformation and the turnover rate of executives. These findings will contribute to the digital transformation research by integrating with executives' dynamic managerial capital which is attained through social networks and political connections.

Impact of Dynamic Capabilities on Customer Satisfaction through Digital Transformation in the Automotive Sector

Technology has impacted businesses in different areas, and, consequently, many companies have found it necessary to make changes in their structures and business models to improve customer satisfaction. The objective was to quantify the effect of dynamic capabilities on customer satisfaction, through digital transformation within the automotive sector. A random sample of 42 questionnaires on 127 surveyed industries was collected during the period 2019–2020 in a pre-COVID-19 context. A structural equation model (SEM) in two stages was applied. In the first stage, two reflective models were built. In a second stage, a structural equation model was evaluated. The results obtained in this study showed that the capabilities of sensing, seizing and innovation were suitably grouped in a construct called “Dynamic Capabilities”. A positive influence of Dynamic Capabilities on customer satisfaction was found. Therefore, the companies in this industry should focus on developing dynamic capabilities to improve customer satisfaction. Once the opportunities have been identified, managers take advantage of their potential (seizing) to transform and exploit knowledge in the creation, innovation, process improvement, and definition of strategies to combine new knowledge with that already existing. The digital transformation has contributed to identify the real needs for customers, to contact them and solve their problems, as well as offering products and services by anticipating their needs.

Evolving competencies to align electronic medical records - a dynamic resource-based perspective on hospitals' co-evolutionary information systems alignment capability

PURPOSE

Advanced Electronic Medical Records (EMR) provide many potential benefits to hospitals. However, because of their broad scope, many stakeholders deal with the EMR and a continuous effort has to be made to keep up with internal and external change. Therefore, hospitals need to deliberately shape their organizational competencies considering the pursuit of alignment, i.e. making sure that the EMR remains optimally aligned with strategies, goals and needs of the hospital and its stakeholders. This paper aims to investigate the evolutionary paths of these alignment competencies and their drivers, from a theoretical perspective of co-evolutionary information systems alignment (COISA).

DESIGN/METHODOLOGY/APPROACH

This paper reports on a longitudinal multiple case study of three Dutch hospitals which each recently implemented an advanced EMR system. The authors conducted 35 in-depth interviews in 2 phases (before and after go-live of the EMR), and studied documentation related to the EMR implementations.

FINDINGS

The findings show that each hospital's COISA capability shows a different evolutionary path. However, two of the three case hospitals ended up coordinating part of their COISA capability to an ecosystem level, i.e. they incorporated other hospitals using the same EMR system to coordinate their alignment efforts, either from an operational perspective, or in terms of orchestration and strategy. The found evolutionary paths' key drivers include "stakeholder initiative", "accumulating experience", "driving events" and "emerging issues".

ORIGINALITY/VALUE

The findings help healthcare practitioners to deliberately shape their organization's COISA capability in pursuit of EMR alignment. Furthermore, the authors add to the knowledge base on co-evolutionary approaches to alignment through the longitudinal approach.

Digitalization, innovation capabilities and absorptive capacity in the Swedish real estate ecosystem

Purpose

The purpose of this paper is to increase the knowledge of real estate firms’ capabilities to innovate and, consequently, their capacity to absorb new innovations and benefit from digital technologies in an ecosystem context.

Design/methodology/approach

The results are based on 32 interviews with representatives of Swedish real estate owners, real estate owner industry associations and suppliers of digital technology to real estate owners. The data are interpreted using theories on absorptive capacity (i.e. the capacity to absorb new innovations), innovation capabilities and innovation ecosystems.

Findings

The real estate owners, technology suppliers and real estate owner industry associations have expanded their innovation capabilities and reshaped their innovation ecosystem by initiating a number of different digitalization activities; for example, the development of new IT systems, digital platforms, services and business models. The absorptive capacity has been improved as the organizations have changed routines and structures related to innovation, and they have taken on new roles related to digitalization and innovation, making them better able to absorb new innovations. Also, this paper identifies several drivers and obstacles to digitalization in the real estate sector.

Research limitations/implications

The increased capabilities related to digitalization can lead to better absorptive capacity on an individual firm level, which can contribute to the overall development of these firms in a longer-term. Also, new capabilities may lead to better absorptive capacity in the real estate sector at large, as firms may benefit from each other’s capabilities through collaboration. The limitations are that this study does not interview tenants or facility management firms and that the findings represent the context of the Swedish real estate market.

Originality/value

This paper investigates innovation capabilities, absorptive capacity and innovation ecosystems of real estate owners, their technology suppliers and real estate owner industry associations on the organizational level and on the sector level, into which there is little previous research. Also, this paper highlights the novelty of digitalization as a phenomenon in the sector.

Research on Successful Factors and Influencing Mechanism of the Digital Transformation in SMEs

In the era of the digital economy, digital transformation (DT) has become a new approach for firms to gain competitive advantages in a context of intense and dynamic market competition. Companies in almost all industries have undergone or are currently undergoing DT. Due to limited resources and capabilities, the digitalization process of small and medium-sized enterprises (SMEs) is relatively slow, so it is critical to ascertain the key factors and paths that affect the success of DT for SMEs to optimize the allocation of resources. However, there is very little research on the DT of SMEs. In response to this literature gap, the purpose of this study is to discover the key factors of the DT in SMEs and explore their interaction mechanisms. From a holistic perspective, this study has identified six key factors from three dimensions of technology, organization, and environment, and based on the resource-based view and resource-dependence theory, constructed an action mechanism model. Structural equation modeling was used to analyze the data collected from 180 SMEs in China. The results show that technological and environmental factors have a positive impact on organizational capabilities, and then promote the success of DT of SMEs. Organizational capabilities play an intermediary role in the influence of technological and environmental factors on DT. In addition, employee skills positively moderate the relationship between organizational capabilities and the success of DT. This study contributes to the conceptual framework and management implications in the DT field. Our study provides practitioners with profound insights into the enterprise’s DT and suggests that enterprises attach importance to the improvement of organizational capabilities, and use strategy and talents as important resources to promote the success of enterprise DT.

Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations

To enable new digital business models, pre-digital organizations launch entrepreneurial initiatives. However, in developing the required digital capabilities, pre-digital organizations often face challenges as they are marked by the ways they have historically established their organizational identity. Research on how pre-digital organizations can develop digital capabilities remains scarce. This study draws on a single case study to illustrate potential pathways for the development of digital capabilities. Two key characteristics are identified: the source of digital capability development and the set-up of the actors involved. The authors synthesize four possible pathway manifestations, discuss the dynamic nature of pathway combinations, and suggest that managing a portfolio of pathways may be crucial for pre-digital organizations. Therefore, the study contributes to a better understanding of digital transformation in pre-digital organizations. Furthermore, it provides guidance for practitioners to reflect on when deciding which pathways to follow.

Factors Influencing Digital Innovation Strategy in Organizations

Prior research has shown that digitalization is found to deliver a source of investigation for presenting organizations to redesign their business model in order to align their strategy towards digital transformation. This study examines the factors influencing digital innovation strategy in organizations and a model for digital innovation strategy in organizations is also developed . Specifically, drawing on data from 450 respondents, the researchers propose that the following variables: organizational IT application portfolio, organizational culture, organizational structure, organizational dynamic capabilities, leadership and ethics predict innovation and strategy in organizations. The researchers found that organizational culture variable contribution was the highest by collectively predicting 78.1% for digital innovation & strategy in organizations. Overall, this study contributes to the literature by providing a model for developing digital innovation strategy in organizations.

The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector

With vast potentials in improving operations and stimulating growth, digital transformation has aroused much attention from firms across the world. However, the high costs associated with the transformation can not be ignored. Limited research has looked into the organizational performance effects of digital transformation. After examining the benefits and costs of digital transformation, this research makes an empirical study on the impact of digital transformation on firm operational and financial performance. The panel data from 2010 to 2020 of 2254 manufacturing companies in China suggests that the intensity of digital transformation is in positive correlation with the process-based operating performance, and in the U-shaped correlation with the profit-oriented financial performance. Further, we find that digital transformation has a much more lasting impact on operating performance than on financial performance. The conditions required (i.e., policy and innovation environment) to improve the operating performance via digital transformation are more easing. This research shows the differentiated effect of digital transformation on different dimensions of organizational performance and provides guidance for companies to set the goals for digital transformation.

How Is Knowledge Perceived as Power? A Multilevel Model of Knowledge Power in Innovation Networks

Inter-organizational power relations have long been considered to be balanced in innovation networks, which are viewed as loosely coupled systems. Some recent studies, however, show that innovation networks are asymmetric and hierarchical, and the power of network actors has become a significant but rarely addressed issue. As knowledge is the most important resource in the network, this paper introduces the concept of knowledge power by combining related research perspectives and conducting some fundamental research on it as follows: (1) knowledge power’s origins are analyzed by proposing the term “activated knowledge” and studying the path through which it is formed over multiple levels of the network; (2) a multilevel framework of characteristics of activated knowledge, which is considered the major determinant of knowledge power, is established, and suggestions are offered for how they impact knowledge power; and (3) a multilevel measurement model for knowledge power is built, and the above propositions are tested by mathematical inference. The purpose of this paper is not only to study knowledge power’s formation, determinants, and measurement but also to offer a comprehensive view, combining multiple network levels and multiple research perspectives, that should be useful to researchers conducting future studies in this field.

Dynamic capabilities for digital transformation

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.