Digital innovation:Areview and synthesis

Research on the impact and mechanism of digital economy on China's urban green total factor productivity

Green and sustainable development is unstoppable. The digital economy has driven great changes in production methods and has become a key strength in reshaping global economic structure and achieving sustainable development. Cities are both the mainstay of economic growth and the main source of various environmental pollution problems. Therefore, studying the relationship between urban digital economy and urban green total factor productivity is of great significance. Based on panel data from 252 cities in China 2011-2019, a two-way fixed effects model was used to examine the impact of urban digital economy on urban green total factor productivity. The empirical results indicate that: (1) Urban digital economy has a significant positive impact on urban green total factor productivity. (2) Urban technological-innovation-level and human-capital-structure of play a mediating role in the impact. (3) This impact has regional heterogeneity and resource-based type heterogeneity. The research conclusions are not only valuable supplements to previous research, but also providing reliable instructions for implementing a flexible digital economy policy.

Can digital technology innovation contribute to firms' market value?

With the rapid development of digital technology, digital technology innovation has become a core driver of China's economic development. Thus, this study uses A-share listed companies from 2003 to 2021 as the research sample. The digital patents of firms are identified to portray the level of digital technology innovation by matching the digital economy industry classification code, national economy industry classification code, and IPC number. Considers the economic effect of digital technology innovation from the perspective of firm market value. It is found that digital technology innovation significantly contributes to the increase in firm market value, and this finding still holds when robustness tests are performed. Mechanistic tests have shown that digital technology innovation affects firm market value by driving digital transformation, promoting productivity, and enhancing market profitability. Further analysis reveals that digital technology innovation has a more significant effect on increasing firm market value for large, non-state, capital-intensive, technology-intensive and low internal control costs firms. This study verifies the enabling effect of digital technology innovation on the development of the real economy at the micro level, and provides insights for the optimization of China's digital technology innovation policies and the formulation of firms' digital development strategies.

When does digital merger and acquisition create shareholder value? An empirical investigation in the Chinese context

In China, acquiring firms are increasingly focused on the immediate financial returns that digital mergers and acquisitions (DM&A) can help them achieve in the stock market, but there is little literature that examines which acquiring firms achieve greater returns. Based on signaling theory, this study conceptualizes DM&A announcements as signals released by the acquiring firms to the stock market and explores the factors influencing the Chinese stock market's reaction to such signals. This research empirically investigates potential influencing factors using a short-term event methodology together with regression analysis based on the data collected in China's Shanghai and Shenzhen stock markets during 2012-2021. The research finds that the Chinese stock market reacts more positively to DM&A announcements for acquiring firms with high executive shareholdings, high executive openness, strong digital innovation capabilities, and in regions with higher levels of investor protection. This study is the first attempt to explore the factors influencing the stock market's response to DM&A in the Chinese context.

Impact of stakeholder pressure on digital process innovation: An empirical analysis

Digital technologies can bring about fundamental changes in corporate processes, which may result in a shift from process innovation to digital process innovation. However, owing to resource constraints and various stakeholders, digital process implementation is extremely challenging for firms. Based on stakeholder theory, this study explores whether and how stakeholder pressure for digitalization can facilitate corporate digital process innovation and unravels the mediating effect of routine reconfiguration and the moderating effect of strategic flexibility. The findings from a survey of 351 firms prove that stakeholder pressure for digitalization can facilitate corporate digital process innovation via routine reconfiguration. Moreover, this study finds that increased strategic flexibility can strengthen the positive mediating effect of routine reconfiguration. The findings contribute to the deep understanding of digital process innovation and offer a boundary condition for the effectiveness of stakeholder pressure.

Can digital economy foster synergistic increases in green innovation and corporate value? Evidence from China

The rapid evolution of the digital economy has significantly accelerated progress towards achieving green and sustainable processes, particularly in the field of green production. While existing research has delved into the effects of the digital economy on Green Innovation (GI) and the consequences of digital transformation on Corporate Value (CV), there remains a notable gap in the literature regarding the potential for synergistic enhancements in firms' GI&CV through the ongoing digital revolution. This study utilizes an evolutionary game model and employs system dynamics methods to simulate the dynamic evolution trajectory of the influence of the digital economy on the synergy between GI&CV. Subsequently, it empirically assesses the interconnected synergies between GI&CV using a dataset comprising information from Chinese listed firms spanning from 2011 to 2020, examining the impact of the digital economy on these synergies. Moreover, the study delves into the analysis of the transmission mechanism and conducts an extended investigation to further explore this phenomenon. The findings of this paper including: (1) The digital economy acts as a driving force behind the synergistic enhancement of firm GI&CV. Moreover, this effect is further augmented by governmental environmental regulation and green subsidy policies. (2) Drawing upon the information asymmetry theory and the resource-based theory, the regional marketization level and firms' digital transformation play intermediary roles. (3) The heterogeneity test indicate that firms situated in eastern regions and those classified as non-heavily polluted benefitted to a greater extent. This study sheds light on the incentive implications of digital economy for the synergistic upgrading of GI&CV, thereby extending the breadth of study on the consequences of digital economy. Moreover, it offers actionable suggestions for enterprises to leverage digital economy development towards achieving a synergistic improvement of GI&CV.

How does market-incentive environmental regulation affect enterprises green growth? The mediating role of R&D investment and innovation output

Manufacturing enterprises is a country's economic mainstay. However, their longtime extensive growth pattern of "high growth and high emission" has brought huge environment pollution and restricted sustainable development. Under the circumstance of carbon reduction and global green development, market-incentive environmental regulation (MER) has attracted the attention of scholars and become a kind of important methods of encouraging manufacturing enterprises green growth. Presently, two fairly distinct viewpoints of "Follow Cost" and "Porter Hypothesis" both have their own supportive research results, and the explanation for the role of MER is completely opposite. What's more, empirical research at the enterprise level is scarce. Therefore, this study makes a further analysis from the perspective of enterprises heterogeneous innovation ability. Guided by the classic theory of "Follow Cost" and "Porter Hypothesis", this study aims to evaluate the applicable conditions of MER's environmental improvement effect, and testing the differential impact mechanism of MER on enterprise Green Total Factor Productivity (GTFP), enterprise Green Technological Change (GTC) and enterprise Green Efficiency Change (GEC). All these give theoretical and empirical supplementation for the rationality of related theories. This study examines the hypotheses and mechanism according to 1220 Chinese manufacturing listed companies data 2011-2020. The empirical results indicate that: (1) In short term, MER has a significant positive impact on GTC, and a significant negative impact on GTFP and GEC. (2) As innovation driven factors, both enterprise R&D investment and innovation output play the mediating role. (3) Heterogeneity analysis indicates that the impact mechanism varies depending on enterprise industry-type, location and digital level. Thus, policymakers should develop appropriate MER policies, and manufacturing enterprises should strengthen technological innovation to help achieve environmental sustainability and profit performance.

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.

Decoding enterprise digital transformation: External oversight and carbon emission reduction performance

Enterprise digital transformation (EDT) is a strategic initiative that provides robust support for optimising resource allocation, fosters business innovation, and significantly impacts ecological environment to increase financial performance. This study re-examines the substantial contributions of EDT to climate change mitigation. Drawing on data from Chinese A-share listed companies from 2010 to 2021, we investigated the changes and mechanisms influencing carbon emissions reduction performance (CERP) of enterprises undergoing digital transformation. The empirical results indicate that EDT actively contributes to enhancing the CERP of enterprises, with a more pronounced effect observed in non-polluting industries, state-owned enterprises, and manufacturing companies. Furthermore, empirical findings from mechanism tests reveal that EDT effectively improves the CERP by driving green technological innovation, strengthening industry chain connections, and enhancing capacity utilisation. Finally, within external oversight groups, particularly in government and investor supervision, the enhancement of enterprise CERP is more significant, highlighting the crucial role of external oversight in the EDT process.

The impact of the digital economy on creative industries development: Empirical evidence based on the China

Digital economy has become a "new engine" that driving global economic growth. Nevertheless, numerous controversies persist regarding whether and how digital economy can facilitate the development of emerging industries. Thus, this paper investigates how digital economy affects creative industries development in China and whether innovation efficiency mediates this relationship. Drawing upon a panel data set containing 29 Chinese provinces from 2012 to 2019, an econometric model is constructed for empirical analysis. We find that digital economy significantly promotes creative industries development, and innovation efficiency plays a partial mediating role between digital economy and creative industries development. According to the influence mechanism, the digital economy of various regions could promote the creative industries development by improving the innovation efficiency. Finally, relevant suggestions were put forward from the expanding application paths, improving regional innovation efficiency, and creating an innovative environment.

Digital economy and green total factor productivity in China

The development of information technology has created conducive conditions for the digital economy. The digital economy is regarded as a critical pathway for transforming traditional economic models. Green total factor productivity serves as an indicator for assessing the quality of economic development. During pivotal periods of economic transition, the digital economy and green total factor productivity have emerged as two prominent themes for achieving sustainable economic development. But the impact of digital economy on green total factor productivity is less discussed. Innovation environment refers to a confluence of conditions shaped by factors such as talent, funding, cultural atmosphere and government policies, all of which collectively support innovative activities within a region. The institutional environment encompasses the aggregate of economic, political, social, and legal rules. Currently, there is little discussion on bringing innovation environment and institutional environment into the impact of digital economy on green total factor productivity. To fill the research gap, this paper adopts the Slack based measure-Directional distance function model and Malmquist-Luenberger productivity index to measure green total factor productivity in each region based on the panel data collected from 30 provinces in China from 2004 to 2019. Generalized Method of Moments method is constructed to carry out an empirical study on the impact of digital economy on green total factor productivity. This paper constructs a panel threshold model with innovation environment and institutional environment as threshold variables. In further analysis, this paper employs panel quantile regression for the empirical analysis of the impact of the digital economy on green total factor productivity. Further analysis elucidates the evident disparities in the influence of the digital economy on green total factor productivity at various levels. The research results can provide a guide for discussing the green value of the digital economy and its role in fostering the development of a green economy.

Re-evaluating the impact and mechanism of digital economy on regional pollution intensity from the perspective of spatial spillover

Based on the panel data of 259 cities across China from 2011 to 2019, the study investigates the long-run impact of digital economy on regional pollution intensity by employing multiple models. The estimation results reveal that (1) the relatively heavily polluted areas are concentrated in the north, especially in the northeast of China; the overall pollution intensity is decreasing year by year at the national level; (2) the development of digital economy can significantly contribute to the reduction of regional pollution intensity and it has a statistically significant negative spatial spillover effect on the pollution intensity of neighboring cities; (3) mechanism analysis shows that the development of digital economy not only has a direct effect on the reduction of pollution intensity but also promotes the reduction through the channel of industrial structure upgrading and green technology progress; (4) the results of threshold model suggest that as the level of development of the digital economy increases, its marginal inhibitory effect of promoting the decrease in pollution intensity will diminish; (5) heterogeneity analysis shows that the development of digital economy makes the strongest marginal contribution to pollution intensity reduction in the northeast region. Finally, the conclusions remain valid after controlling for exogenous shocks such as "smart city" policy, various robustness, and endogeneity tests.

A study of the coupling between the digital economy and regional economic resilience: Evidence from China

The contemporary economic landscape has placed significant emphasis on the digital economy and economic resilience, progressively emerging as pivotal focal points for examining the high-quality development of economic systems. However, there remains to be more research on several critical topics. This includes the characteristics of coordinated development between the digital economy and economic resilience systems and their interdependence. In response, this study formulates a comprehensive evaluative framework for digital economy development and regional economic resilience, grounded in the intrinsic mechanisms of both domains. It conducts a thorough evaluation employing entropy weight-TOPSIS methodology. Additionally, leveraging coupling theory, a coordination model's coupling degree serves as the foundational framework for scrutinizing the symbiotic advancement of the digital economy and economic resilience, along with their interdependent nature. The research sample comprises data from 31 provinces and municipalities in China (excluding Hong Kong, Macao, and Taiwan) from 2011 to 2020. Spatial autocorrelation and Geodetector methodologies probe the evolutionary traits and driving factors underlying the coordinated developmental relationship between these two systems. The findings indicate an upward trajectory in China's annual comprehensive development index for digital economy development (from 0.233 to 0.458) and regional economic resilience (from 0.393 to 0.497). The coupling and coordination between the two systems, measured from 0.504 in 2011 to 0.658 in 2020, demonstrate a consistent growth pattern with an average annual increase of 3.01%. These levels exhibit continuous improvement, with comprehensive economic zones manifesting hierarchical results within the coupling range of [0.5, 0.8]. Notably, agglomeration development evinces a pronounced spatial positive correlation, while local Moran scattering points are primarily concentrated in localized migration leaps. Factors such as foreign-funded enterprises' total import and export volume, online payment capability, and fiber-optic cable length greatly influence the coupling relationship. In contrast, other variables exhibit a lower and more fluctuating degree of weighted impact. This study establishes a foundation for the synergistic and effective development of the digital economy and economic resilience within the Chinese region. Simultaneously, it offers valuable insights for research of related subjects in global contexts.

From atoms to bits: Resource mobilization of non-digital, hybrid, and digital cleantech startups

Climate change is one of the most critical challenges to tackle in this century, where innovations developed and commercialized by cleantech startups are crucial contributors to achieve emission reduction targets. Entrepreneurship scholars have long presumed that resource mobilization is essential for startups to transit successfully through the conception and commercialization life cycle stages. Yet, we have a limited understanding of how resource mobilization varies across the three startups types of non-digital, hybrid - an intermediate type of non-digital and digital startups -, and digital cleantech startups. Drawing on insights from 16 semi-structured interviews with startups, investors, and industry experts in the U.S. cleantech industry, as well as secondary data, this study provides a novel framework that identifies the resource mobilization approaches of cleantech startups disentangled by the three startup types. The findings indicate that non-digital cleantech startups face the most severe resource mobilization challenges, followed by hybrid and digital cleantech startups, respectively. The study contributes to the literature on resource mobilization of cleantech startups and digital entrepreneurship. It also outlines implications for startups and venture capital investors as practitioners as well as for policymakers.

Information technology capability, open technological innovation and firm growth

The aim of this paper is to investigate the effects of information technology (IT) capability on firm growth in the context of open technological innovation. The paper utilized a logical deductive approach to develop hypotheses and analytical frameworks, and collected empirical data from 256 Chinese new ventures. Regression analysis and structural equation models were used to test the hypotheses and analyze the data. The results showed that IT capability, including flexibility and integration of information technology, significantly influenced firm growth, and open technological innovation partially mediated the relationship between IT flexibility and firm growth, and significantly mediated the relationship between IT integration and firm growth. The paper's limitations include the cross-sectional design, limited sample size, and potential unobserved variables such as organizational learning that could affect the relationship between IT capability and firm growth. The research is the first to investigate the effects of IT capability on firm growth based on the mediation of open technological innovation in China, contributing to the literature on IT capability and providing insights for managerial practice in the sharing economy era.

Does digital finance promote the "quantity" and "quality" of green innovation? A dynamic spatial Durbin econometric analysis

Based on the panel data of 284 prefecture-level cities in China, this paper uses the dynamic spatial Durbin model to explore the impact of digital finance on green innovation from the dimensions of "quantity" and "quality." The results show that digital finance has a positive impact on both the quality and quantity of green innovation in local cities, but the development of digital finance in neighboring cities has a negative impact on the quantity and quality of green innovation in local cities, and the impact on the quality of green innovation is greater than that on the quantity of green innovation. And after a series of robustness tests, it was shown that the above conclusions are robust. In addition, digital finance can have a positive impact on green innovation mainly through industrial structure upgrading and informatization level. Heterogeneity analysis shows that the breadth of coverage and the degree of digitization are significantly related to green innovation, and digital finance has a more significant positive impact in eastern cities than in mid-western cities.

Innovating agri-food business models after the Covid-19 pandemic: The impact of digital technologies on the value creation and value capture mechanisms

This paper investigates the phenomenon of business models innovation (BMI) empowered by digital technologies and activated as a response to Covid-19 crisis. In fact, during the crisis numerous digital redesigns of businesses occurred to pursue both continuity and competitive advantage. Among these, the food retail sector has undergone under the pressure of the crisis intense digital changes, which, however, have not yet been investigated under the theoretical lens of BMI. To fill this gap, the paper analyzes the digital actions taken during the pandemic crisis by two large food retailers, namely Walmart and Carrefour. Covering a wide temporal interval of the pandemic evolution and reviewing multiple geographical markets, the authors interpreted the grocer's digital responses to the crisis in terms of innovation in value creation and capture mechanisms. As a result, three phases of digital BMI have been reconstructed, each characterized by specific mechanisms of value creation and capture experienced by the two grocers during the pandemic. Leveraging these findings, the paper proposes a model capable of defining how digital BMI takes place in response to crises. Results broaden theoretical knowledge and practical suggestions on digital BMI in terms of enabling factors, actionable value mechanisms, and future business opportunities.

Digital finance innovation in green manufacturing: a bibliometric approach

In the era of Industry 4.0, the innovative applications of the industrial internet of things continue to deepen, and the trend of digital transformation of the green manufacturing industry continues to expand. In this context, the study of digital finance innovation in green manufacturing enterprises is conducive to transforming and upgrading enterprises and national economic development. In order to review the theoretical foundations and the current state of research under this topic, this paper provides an overview of digital finance innovation in green manufacturing companies based on 296 papers published between 1900 and 2021 through bibliometric and scientific visualization methods. This paper uses HistCite to identify the most influential authors, institutions, and countries and uncover the lineage of research on digital finance innovation in green manufacturing companies. At the same time, VOSviewer is used to identify research hotspots and research clusters under the topic. Finally, on this basis, this paper classifies the types of digital innovation from the perspective of value creation. It proposes a theoretical framework for the realization path of digital finance innovation in green manufacturing enterprises based on intelligent servitization and orchestration capabilities. The findings of this paper enrich the existing innovation theory and facilitate scholars to conduct future research more effectively.

Emerging IT investments and firm performance: a perspective of the digital options

Purpose

This study aims to explore the mediating effect of digital options on the relationship between emerging information technology investments (ITIs) and firm performance (FP). In particular, it analyses the performance impacts of investments in five emerging technologies of IT or non-IT firms.

Design/methodology/approach

Secondary data are collected from Chinese A-share listed companies from 2010 to 2018. The authors propose an econometric model focusing on the impact of ITIs on a firm’s market value and profit. A propensity score matching model is applied to control endogeneity.

Findings

The ITIs’ effect on FP is found to be completely mediated by digital options, and the reach of digital options plays a more positive role in the relationship between ITIs and Tobin’s Q, whereas the richness of digital options is stronger between ITIs and return on net assets (ROE). The group study shows that the impact of process technologies such as cloud computing and the Internet of Things has a more profound impact on Tobin’s Q, and the knowledge technologies represented by artificial intelligence, blockchain and big data strongly affect ROE. In addition, the positive relationship between ITIs and FP is unrelated to IT/non-IT firms.

Research limitations/implications

First, the data are based on 219 publicly announced emerging ITIs in China and thus may not be generalizable to other cultural/national contexts. Second, there is a lack of a large sample data set of emerging ITI information in China, and the duration of this study is constrained to the relatively short rise of emerging technologies.

Practical implications

This study provides firm decision-makers with practical implications. The results imply that the effect of ITIs on FP depends on digital options, so both IT firms (e.g., Big Tech giants) and non-IT firms (e.g., incumbents) should discover how to balance firm value and profit in their management of emerging technology investment projects with digital options thinking.

Originality/value

To the best of the authors’ knowledge, this is the first empirical study to investigate the relationship between ITIs and FP from the perspective of digital options, exploring five emerging technologies and considering firm life, size, and state ownership in a sample of Chinese listed firms.

Does digital economy development reduce carbon emission intensity?

Carbon emissions from human activities are the main cause of climate warming. Under the background of economic and social digital transformation, accurately assessing the carbon emission reduction effect of the development of the digital economy is of great significance for countries to deal with climate warming in the post-COVID-19 era. This paper constructs a dynamic evaluation model of orthogonal projection to measure the level of digital economy development at the provincial level in China from 2007 to 2019. On this basis, the panel fixed effects model and mediation model are used to empirically test the impact of digital economy development on carbon emission intensity and its mechanism. The results indicate that: (1) The development of China’s digital economy is unbalanced among regions, showing a geospatial pattern of decreasing from east to west. (2) China’s carbon emission intensity has a trend of decreasing year by year, and there are geospatial differences of “high in the west and low in the east” and “high in the north and low in the south.” (3) The digital economy development can effectively reduce regional carbon emission intensity through industrial structure optimization effect and resource allocation effect, and the industrial structure optimization effect can suppress carbon emission intensity more obviously. (4) The development of digital economy in different regions has different degrees of reducing carbon emission intensity. The development of digital economy in the eastern region has a stronger inhibitory effect on carbon emission intensity than that in the middle and western regions, and the development of digital economy in economically developed regions can suppress carbon emission intensity more. This paper provides enlightenment for policy makers to deal with climate warming.

Digital innovation in entrepreneurial firms: a systematic literature review

Entrepreneurial firms are central actors in the process of the generation and diffusion of digital innovation which, on the other hand, provides a wide range of opportunities for entrepreneurs. Although existing research has produced several contributions on both topics, the knowledge generated in the field appears fragmented and the findings are sometimes ambiguous. The reason for this fragmentation can be traced back to the lack of reference frameworks that clarify the most used concepts, thus providing a shared language. This study aims to consolidate the state-of-art of scholarly research published over the past 20 years at the intersection of the innovation and entrepreneurship fields of study. To this aim, we carried out a systematic literature review by analyzing a set of 185 papers in order to find what are the relevant topics in the investigated research domain. This activity was performed using MySLR software. Besides a descriptive picture of the scientific activity, a map of the literature published to date that simultaneously addresses the two themes, is provided. In particular, we characterized the six relevant topics in the investigated research domain: start-ups’ collaboration networks, business-model innovation, digital platforms, digital ventures, the digital entrepreneur’s profile, and digital-innovation ecosystems. Based on these results the article proposes three main research directions for future research: multi-level analysis of Digital Innovation in Entrepreneurial Ventures; interdisciplinary approaches; development of specific theories for igital Innovation. Overall, the value of research is to provide a framework for analyzing the phenomenon of innovation in and with entrepreneurial firms that can be used as a reference model for both entrepreneurship and innovation management researchers.

Research on the Effect of Digital Economy on Carbon Emissions under the Background of "Double Carbon"

(1) Background: In light of the global economy's digitalization and the "double carbon" target constraint, the digital economy is essential to fostering scientific and technological innovation, green growth, and lowering energy emissions. (2) Methods: This paper measures the digital economic index and carbon emission intensity and analyzes their characteristics in spatial and temporal dimensions using 282 Chinese urban panel data by improving various statistical methods of panel data, such as the entropy method, fixed effect model, multi-period DID model, moderating effect model and intermediary effect model. This paper examines the extent and mechanism of the digital economy's impact on urban carbon emissions. (3) Results: During the sample period, the overall trend of the digital economy in China was one of constant growth, showing an unbalanced distribution pattern of "high in the eastern regions, lower in the central regions and lowest in the western regions" in the spatial dimension. Carbon emissions can be significantly decreased by the digital economy, which has a dynamic effect and an inverted U-shaped trend in its influence. The digital economy plays a significant role in reducing carbon emissions through the rational layout of industrial structures. The transmission mechanisms for the digital economy's goal of reducing carbon emissions include environmental regulation and green technology innovation. (4) Conclusion: The research findings provide a reference for multiple decision makers to better formulate carbon emission policies and realize carbon emission decrease in the digital economy.

Does digitalization make urban development greener? A case from 276 cities in China

Nowadays countries in the world are striving to transform their economic and social development modes to achieve the general goal of green development. With the rapid development of communication technology, digitalization has affected production and life, touching all aspects of society. Can digitalization make the world “greener”? To this end, this study conducts an empirical research based on the panel data of 276 cities in China from 2011 to 2020. Firstly, this paper separately measured the comprehensive level of urban digitalization and urban greening through the Entropy-TOPSIS method, then analyzed their spatial distribution characteristics and evolution process respectively, finally used the spatial Durbin model to explore the impact of digitalization on urban greening development. The following conclusions were drawn accordingly: (1). The development pattern of urban digitalization has changed from “multi-point” sporadic distribution to “group-type” aggregation with obvious spatial heterogeneity. The gap between cities is not narrowing. The Yangtze River Delta urban agglomeration has become an important high-level digital agglomeration area; (2). The urban greening develops with obvious spatial heterogeneity. The difference between eastern regions and western regions is prominent, and the urban spatial agglomeration characteristic is distinct. However, the spillover effect is weakened with distance, while the convergence characteristic becomes obvious; (3). Digitalization is significantly beneficial to the development of urban greening with obvious spatial heterogeneity. Digitalization in cities within urban agglomeration and in eastern regions has a stronger effect on promoting the urban greening, which is not obvious in cities located in western regions and non-urban agglomeration. Finally, according to the research results, suggestions for urban digitalization and greening development are put forward.

Industry 4.0 in international business research

The advent of Industry 4.0 promises to transform the global business landscape, the nature of markets and industries, and the way multinationals organize their operations as well as how and where they compete. These changes will have important - indeed profound - implications for IB scholarship. In this article, we explain Industry 4.0 and its distinguishing characteristics; discuss its organizational and strategic implications for multinationals; and outline the fundamental questions it raises for future IB research. To spur future analysis, we also present a conceptual foundation that articulates the new features, processes, and capabilities that support MNEs' pursuit of Industry 4.0-related opportunities surrounding digitalization, intelligence, technology, and innovation. We also discuss what Industry 4.0 means for IB research concerning social engagement, environmental sustainability, and international entrepreneurship. We elucidate how this new landscape shapes the extant IB literature and how future research can push it further along.

Digital economy and industrial energy efficiency performance: evidence from the city of the Yangtze River Delta in China

Industry dominates energy consumption and carbon emissions in China, and industrial energy efficiency is critical for the achievement of energy transformation and carbon emission reduction. With the rapid development of the digital economy, its impact on energy efficiency is gradually emerging, and it is necessary to clarify the influencing mechanism on industrial energy efficiency. Based on the panel data of industrial sectors in 41 cities in the Yangtze River Delta from 2011 to 2019, the main objectives of this study are to more accurately measure the industrial total factor energy efficiency in each city by using the Super-Dynamic-SBM model. It analyses the influence mechanism of the digital economy and other influencing factors on industrial total factor energy efficiency with different methods. The research results indicate that, first, the total factor energy efficiency of the industrial sector in the Yangtze River Delta urban agglomeration generally showed a steady upward trend. Second, the digital economy and environmental regulation play a significant role in promoting total factor energy efficiency. In addition, industrial energy efficiency and the digital economy show an inverted "U" shaped relationship. With the improvement of the digital economy, its marginal contribution to total factor energy efficiency gradually weakens. Finally, technological progress is an important transmission channel for the impact of the digital economy on total factor energy efficiency.

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.

Artificial Intelligence for Cancer Detection-A Bibliometric Analysis and Avenues for Future Research

After cardiovascular diseases, cancer is responsible for the most deaths worldwide. Detecting a cancer disease early improves the chances for healing significantly. One group of technologies that is increasingly applied for detecting cancer is artificial intelligence. Artificial intelligence has great potential to support clinicians and medical practitioners as it allows for the early detection of carcinomas. During recent years, research on artificial intelligence for cancer detection grew a lot. Within this article, we conducted a bibliometric study of the existing research dealing with the application of artificial intelligence in cancer detection. We analyzed 6450 articles on that topic that were published between 1986 and 2022. By doing so, we were able to give an overview of this research field, including its key topics, relevant outlets, institutions, and articles. Based on our findings, we developed a future research agenda that can help to advance research on artificial intelligence for cancer detection. In summary, our study is intended to serve as a platform and foundation for researchers that are interested in the potential of artificial intelligence for detecting cancer.

Tracing the evolution of digitalisation research in business and management fields: Bibliometric analysis, topic modelling and deep learning trend forecasting

Research on digitalisation trends and digital topics has become one of the most prolific streams of research within the fields of business and management during the course of the past few years. The purpose of this study is to provide a general picture of the intellectual structure and the conceptual space of this research realm. To this purpose, 6067 publications related to digital topics, indexed in the business and management categories of Web of Science (WoS), and dated from 1990 to 2020 are explored based on the approaches of bibliometric analysis, topic modelling and trend forecasting. The results of the bibliometric analysis comprise insights into the publication and citation structure, the most productive authors, the most productive universities, the most productive countries, the most productive journals, the most cited studies and the most prevalent themes and sub-themes on digitalisation in business and management. In addition, the outcomes of the topic modelling give new knowledge on the latent topical structure along with the rising, falling and fluctuating trends of this literature. In addition, the results of the trend forecasting enable readers to have a glimpse of how the underlying trends of the literature will probably change within the next years until 2025. These results provide guidance and orientation for both academics and practitioners who are initiating or currently developing their efforts in this discipline.

Digital Gifts at the Workplace

This study builds on the emergence of new gifting practices using e-hongbaos which are monetary gifts transferred between individuals made possible by digital communication platforms. This is an exploratory study on the impact of these innovations on intra-organizational relationships. Three types of intra-organizational relationships are considered: the employee's relationship with the organization, with the team, and with the manager. The findings of the study indicate positive impacts of e-hongbao at all organizational levels. The authors also identify the varying effects of e-hongbao on intra-organizational relationship outcomes depending on the occasion of gifting, as well as the mode, direction, and measure. Specifically, ‘group' e-hongbao, a gamified group-gift enabled by the digitalization of gifting, has the strongest influence on intra-organizational relationships. The authors discuss the implications of these findings for theory and practice in the workplace and also offer future research directions.

Does the Digital Economy Increase Green TFP in Cities?

COVID-19 accelerated the growth of the digital economy and digital transformation across the globe. Meanwhile, it also created a higher demand for productivity in the real economy. Hence, the correlation between the digital economy and green productivity is worth studying as COVID-19 prevention becomes the norm. The digital economy overcomes the limitations imposed by traditional factors of production on economic growth and empowers innovative R&D and resource allocation in all aspects. This study delved into the digital economy by focusing on its green value at different levels of development. The study gathered the green-productivity indices and the principal components of the digital economy for each prefecture-level city in China from 2011 to 2019 and meticulously portrayed their trends in spatial and temporal figures. Meanwhile, regression models were used to verify the mechanism through which digital-economy development influences the changes in green productivity. The results showed that: (1) a higher level of digital economy helps to increase urban green total-factor productivity (GTFP) and that the conclusions of this paper still held after potential endogeneity problems were solved through the instrumental-variables approach; (2) the digital economy will drive an increase in urban GTFP by upgrading firms' production technologies and that digital-economy development encourages green patent applications from firms; and (3) as the digital economy develops, it will also drive urban GTFP increases by removing polluting enterprises from the market and that the higher the level of digital-economy development, the greater the number and probability of polluting enterprises exiting the market. In view of this study's results, the government should increase the importance of the digital economy, strengthen the role of the digital economy in promoting urban green development, and provide more guidance on regional green development with the help of the digital economy.

Development of a Method for the Engineering of Digital Innovation Using Design Science Research

This paper outlines the path towards a method focusing on a process model for the integrated engineering of Digital Innovation (DI) and Design Science Research (DSR). The use of the DSR methodology allows for achieving both scientific rigor and practical relevance, while integrating the concept of innovation strategies into the proposed method enables a conscious approach to classify different Information Systems (IS) artifacts, and provides a way to create, transfer, and generalize their design. The resulting approach allows for the systematic creation of innovative IS artifacts. On top of that, cumulative DSR knowledge can be systematically built up, facilitating description, comparability, and reuse of the artifacts. We evaluate this newly completed approach in a case study for an automated conversational call center interface leveraging the identification of the caller’s age and gender for dialog optimization, based on machine learning models trained on the SpeechDat spoken-language resource database. Moreover, we validate innovation strategies by analyzing additional innovative projects.

Exploring the Mechanism of the Impact of Green Finance and Digital Economy on China's Green Total Factor Productivity

In the context of the "double cycle," promoting the development of a green economy is an important goal for China's high-quality economic development in the digital age. This paper uses data from 30 provinces (municipalities and autonomous regions) in China during the 2006-2019 period using the Compiled Green Finance Index (GF) and Digital Economy Index (DE). The interrelationship between green finance, digital economy and green total factor productivity (GTFP) is empirically tested by conducting multiple regressions on panel data from 2006-2019 to perform an empirical analysis. Based on this, further analysis was performed with the threshold model. This study found that green finance and digital economy can contribute well to green total factor productivity, but the combination of the two does not have a good effect on green total factor productivity. Further study found that the green finance and digital economy's contribution to green total factor productivity is mainly derived from technological progress. The regression results based on the panel threshold model show that the more underdeveloped the digital economy is in certain regions, the stronger the role of green finance in promoting efficiency improvement. Therefore, policymakers should formulate differentiated green financial policies according to the level of development of the digital economy and give play to the role of green finance and the digital economy in promoting green total factor productivity.

Complementarity Between Investment in Information Technology (IT) and IT Human Resources: Implications for Different Types of Firm Innovation

Innovation is an important means by which firms generate new revenue streams for topline growth. Given the information intensity of innovation, a key question that managers face is: How do we organize our IT-related resource investments to promote innovation performance? This is a consequential question because different types of innovation incur varying levels of upside potential, failure risk and investment costs. In this research, we aim to answer this question by distinguishing four types of innovations—incremental, radical, non-IT related and IT related—that firms aim to produce and examining the extent to which each of these types benefits from complementary investments in IT human resources and IT compared with either type of investment alone. Using patent data from the U.S. Patent and Trademark Office, our analysis of 36,812 firm-year observations reveals that complementary investments in IT human resources and IT are associated with a 117% increase in incremental innovation, a 155% increase in radical innovation, a 173% increase in non–IT-related innovation and a 161% increase in IT-related innovation. The results of this study can be helpful in enabling managers to make informed decisions about how to organize and get the most out of their resource investments based on their innovation objectives.

The role of enterprise architecture-driven dynamic capabilities and operational digital ambidexterity in driving business value under the COVID-19 shock

This article builds upon the dynamic capabilities view and argues that firms that developed their dynamic capabilities using enterprise architecture (EA) are better equipped to cope with the COVID-19 shock. An online survey collected data from 414 senior practitioners, business and IT managers, and executives. The study's research model containing three hypotheses was assessed by applying Partial Least Squares (PLS) structural equation modeling (SEM), PLS-SEM. Outcomes point out that dynamic capabilities driven by EA enhance the firm's digital dynamic capability and, therefore, the competencies to manage digital technologies. This capability subsequently enhances the firms' operational digital ambidexterity. Also, outcomes show that operational digital ambidexterity significantly impacts business value. This study advances our knowledge and insights on developing EA-driven dynamic capabilities under COVID-19 and unfolds key areas where decision-makers should invest in enhancing business value.

Does the regional environment matter in ERP system adoption? Evidence from Russia

Purpose

This paper explores the effect the regional technological environment has on technology-driven performance, measured by enterprise resource planning (ERP).

Design/methodology/approach

This study specifies a productivity-based production function driven by ERP system adoption. Employing a quasi-experimental research design, the author disentangles two effects – the average effect of ERP adoption and the moderation effect of the regional technological environment. The novelty of this study is that it merges publicly available information retrieved via text-mining tools and official financial reports published by companies.

Findings

The total effect of technology adoption on productivity varies from almost 3%–9% in different technological environments. Moreover, this study’s results revealed that the regional technological environment could enhance the effect of adopting different ERP systems.

Originality/value

While some papers investigate the relationship between ERP adoption and firm performance regarding the environmental context of a firm, the effect of the regional technological environment on the relationship between technology adoption and firm performance is understudied. Thus, this research tries to contribute to a deeper understanding of the regional context's impact on technology-driven performance. The authors used automated content analysis to collect data on technology adoption; by doing so, this study contributes to the growing body of research utilising the text-mining approach to extract data stored in Internet-based information sources.

Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities

The digitalization of business processes has increasingly challenged conventional wisdom in corporate green innovation. This empirical paper studies the timely but theoretically underexplored relationship between digital transformation and green innovation in a developing country context. Given that firms' digital transformation shifts organizational structures toward decentralization, we employ a digital perspective to analyze organizational coordination, control, and learning mechanisms and propose that digital transformation positively affects corporate green innovation. Moreover, drawing on structural contingency theory, we demonstrate that such effects can be strengthened by external contingencies, specifically regulatory pressure and international opportunities. Using a dataset of Chinese listed firms, we find empirical support for our hypotheses. Our study is one of the first to examine how firms can leverage organizational digital transformation to enhance their green innovation performance and thus provides new insights into the drivers of sustainable practices for firms in developing countries.

ORGANISATIONAL DIGITAL TRANSFORMATION OF SMES—DEVELOPMENT AND APPLICATION OF A DIGITAL TRANSFORMATION MATURITY MODEL FOR BUSINESS MODEL TRANSFORMATION

One of the most challenging difficulties for incumbent organisations, especially small- and medium-sized enterprises (SMEs), is to manage digital transformation driven by technological change. Incumbent organisations’ responses to digital transformation have been extensively studied in the current literature. However, most research neglects digital transformation in SMEs. There are hardly any valid developed measures for the maturity of digital transformation. We present a holistic digital transformation maturity model based on an extensive literature review, qualitative computer-assisted data analysis, and empirical findings. The digital transformation maturity model focuses on small- and medium-sized enterprises’ unique features and characteristics. We proved the practical applicability and relevance of the digital transformation maturity model in an extensive study involving various organisations, particularly German SMEs ([Formula: see text]= 310). Organisations can use this model to assess themselves initially and, through this process, gain a comprehensive understanding of the multiple forms of digital transformation.

EXPLORING THE RELATIONSHIP BETWEEN MULTI-DIMENSIONAL DIGITAL READINESS AND DIGITAL TRANSFORMATION OUTCOMES

Given that many large-scale digital transformations fail, researchers have sought to identify factors that may increase the likelihood of success when institutionalising organisational changes. The importance of digital readiness for digital transformations has attracted increasing interest recently in this context. However, prior research has not addressed which specific aspects of digital readiness links to digital transformation outcomes under a given context. This study contributes to filling this gap in the literature. Using a sample of 207 Danish SMEs, we conduct an ordinal regression analysis to find out which dimension(s) of digital readiness are important to digital transformation outcomes for small companies. The results show that the strategy and technology dimensions have a positive impact on the dependent variables. The results further highlight the importance of a company’s capacity for change to deploy existing resources. Our results have strong implications for practitioners, as they provide guidance on what to focus on with respect to digital readiness at the outset of a firm’s digital transformation journey.

A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms

Today’s competitive and highly volatile environment calls for a new kind of flexibility and adaptability. Limited studies are available that examine how firms achieve both speed and creativity requirements in this digital era. In view of the rare empirical studies on real-world cases that apply rigorous research methods for sustainable digital innovation (SDI), this research investigates the key strategic requirements of organizational agility and flexibility for SDI. The research framework defines four types of innovators. This study used the benchmark tool to assess the status of their innovation effectiveness. This research framework is useful for firms to classify, assess, and evaluate their innovation type. The study’s findings also suggest the road map for future strategic goals. This theoretical framework illustrates the causal relationship between Japanese-style digital innovation and the firms’ sustainable competitive advantage. This model might be extended to other firms in different contexts (e.g., Korea, India, USA, Brazil, and a host of other countries). The theoretical and practical implications are discussed for future research.

Factors That Affect Digital Innovation Sustainability among SMEs in the Middle East Region

Digital innovation in small and medium-sized enterprises (SMEs) has been studied extensively over the past quarter-century. The products, processes, and/or model innovation in businesses that are viewed as novel necessitate significant alterations from consumers and are represented in or facilitated by IT; this is what it means when digital innovation is mentioned. Nonetheless, despite the unique application of digital innovation in different organizations, the factors that lead to its success are still uncertain. Therefore, this study aims at evaluating the various factors that affect the digital innovation of SMEs in the Middle East region. This research used a descriptive research design in which primary data from the SME owners and employees were used to evaluate the research objectives. Descriptive statistics, such as frequencies and structural equation models conducted through SPSS, were used to evaluate the research objectives in showing how various factors such as the Internet of Things (IoT; physical objects and things with sensors, software, and other technological techniques integrated into them for the purpose of exchanging data and connecting with other systems and devices), digital platforms, and digital orientation have influenced digital innovation sustainability in SMEs. Results showed a positive and substantial impact on digital innovation sustainability as a result of the IoT, digital platforms, and digital orientation. In conclusion, the research shows that SMEs should use digital platforms, the IoT, and digital orientation to be digitally stable.

The Mechanism of an Individual’s Internal Process of Work Engagement, Active Learning and Adaptive Performance

This paper aims to investigate the mechanism linking an individual’s internal processes, work engagement, active learning, and adaptive performance in three of Indonesia’s digital technology-based companies. The research uses a mixed-method approach. The first study used a quantitative research method in which the data is based on a survey of 185 employees and the collected survey data is then analyzed using the Structural Equation Modeling technique. The second study used a qualitative research method where the data is gathered from 17 managers through semi-structured interviews. We found from the quantitative research that work engagement fully mediates the relationship between self-efficacy and a growth mindset toward active learning. Meanwhile, a partial mediating effect of active learning between work engagement and adaptive performance was also discovered. Based on our literature study, previous research has shown inconsistent findings on the relationship between growth mindset and work engagement. Our findings contribute to the existing literature by clarifying the direct relationship between growth mindset and work engagement. Meanwhile, the qualitative findings emphasized that there are two mechanisms underlies individual adaptive performance (i.e., work engagement and active learning). Additionally, the active learning process promotes continuous new knowledge accumulation to produce new innovation inside an organization.

Artificial Intelligence Adoption and Digital Innovation: How Does Digital Resilience Act as a Mediator and Training Protocols as a Moderator?

This study aims to discover how technology firms accomplish digital innovation through AI adoption. The current research also investigated digital resilience’s role as a mediator and training protocol’s role as a moderator between AI adoption and digital innovation links. The data collection and analysis were conducted using a quantitative method. To examine the research hypotheses, we chose technology firms that face problems regarding the enhancement of digital innovation. The findings confirmed that the digital innovation of technology firms is forecasted through AI adoption. The results proved that digital resilience plays a mediating role between AI adoption and digital innovation links. Technology firms play a key role in the advancement of digital technology. This research study adds to the existing knowledge by offering a digital innovation model with the combined influence of AI adoption, digital resilience, and training protocol. This study will be helpful for top management by showing when, why, and how AI adoption helps firms in their achievement of digital innovation. Moreover, digital resilience’s role is also important in the current digitalized world; thus, we used digital resilience as mediator in this research.

Innovating under pressure: Adopting digital technologies in social care organizations during the COVID-19 crisis

To provide ongoing support for vulnerable groups during the COVID-19 pandemic, social care organizations had to shift abruptly to e-health solutions. Qualitative data from three cases illustrate that, more than a year into the pandemic, those adoptions of digital technologies developed differently; the current study aims to shed light on the processes that lead to such differences. Notably, the first organization resisted the large-scale use of digital technologies; the second faced intra-organizational disagreement about the role of digital technology for care provision; and the third organization struggled but managed a broader, more successful adoption of digital technology. The multiple case study findings contribute to extant literature, by (1) detailing the digital innovation process, focusing on the crucial adoption process for digital technology; (2) demonstrating that champions and a shared vision can both enable and constrain the adoption of digital technologies in crisis situations; (3) emphasizing the importance of individual members’ professional identities for determining adoption of digital technologies; and (4) reflecting on the conscious use of transformation practices, even in the ad hoc setting of adopting digital technology during a crisis.

The Effects of Broadband Infrastructure on Carbon Emission Efficiency of Resource-Based Cities in China: A Quasi-Natural Experiment from the "Broadband China" Pilot Policy

Resource-based cities (RBCs) face serious environmental pollution, and there are efforts to try to overcome those challenges by transforming industrial structure through investing in new technologies. Based on the panel data of 114 prefecture-level resource-based cities in China, this paper uses the difference-in-differences (DID) method to identify the effects of the “Broadband China” pilot policy on the carbon emission efficiency of resource-based cities. The results show that the “Broadband China” pilot policy has a significant effect on the improvement of carbon emission efficiency of resource-based cities, and the results are still valid after parallel trend test, PSM-DID estimation and placebo test. This study also finds that there are differences in the carbon emission efficiency of different locations and types of resource-based cities. In addition, the results of the mechanism analysis show that the “Broadband China” pilot policy can promote the improvement of carbon emission efficiency by promoting the upgrading of the industrial structure, the accumulation of human capital and the improvement of the level of urban innovation of resource-based cities. The findings provide a reference for China’s resource-based cities to develop the Broadband infrastructure, realize industrial upgrading, accumulate human capital and improve urban innovation level, and promote low-carbon transformation and improve carbon emission efficiency.

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.