How does the digital service trade nonlinearly affect carbon emissions? Empirical evidence from G20 countries

This study explores the nonlinear relationship between digital service trade and carbon emissions using the data of 42 G20 countries from 2005 to 2021. It is concluded that this relationship appears to be an inverted U-shape. When the digital service trade is inadequate, this exacerbates carbon emissions. Only when the digital service trade is above this point does it become beneficial to environmentally sustainable development. Mediation analyses indicate that the digital service trade increases carbon emissions by increasing emissions from digital infrastructure and decreases them by optimizing the industrial structure and adopting low-carbon technologies. Furthermore, the nonlinear association is moderated by human capital. When human capital is insufficient, it is harder for the digital service trade to curb carbon emissions. Accordingly, this study is helpful to develop the digital service trade and achieving the goals of carbon peak and neutralization and the sustainable growth of the environment.

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.

Role of digitalization in environment, social and governance, and sustainability: Review-based study for implications

Digitalization gives people access to a vast network of untapped data, which has the potential to help society and the environment. Smart systems connected to the internet can systematically provide a unique opportunity to solve difficulties related to long-term sustainability. The goals are to create an egalitarian, ecologically sustainable, and healthy society. Technological resources are envisioned as game-changing instruments. Three key concerns integration benefits are highlighted here: (i) sustainable development goals, (ii) socio-economic development, and (iii) the role of digital technology in environmental sustainability. This viewpoint describes the potential that digitization can create a future sustainable society. The technological network would unite the urban and rural worlds under a shared banner of sustainable development, keeping all social elements in the loop. Nations that take a comprehensive strategy will be able to provide equitable growth and an efficient, sustainable, and digital existence for their citizens. As a result, digitization provides better living conditions, active public involvement, clean governance, and transparency in public welfare programs and processes. People who are well-informed, self-aware, and digitally equipped will be better learners, thinkers, reformers, participators, and change and growth agents, marching forward on sustainable progress. The advantages of digitization in hastening the transition to sustainable industrial processes and improving people's health and happiness are explored. Finally, the perspective encapsulates the advantages of digitization by offering a holistic vision of how technology could aid in addressing major challenges such as endangered world biodiversity and climate change.

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.

Mind the Gaps: How Organization Design Shapes the Sourcing of Inventions

An important problem for many firms is sustaining their rate of innovation by launching new products on an ongoing basis. Accordingly, firms need to replenish their innovation pipelines with new inventions as existing inventions are weeded out or reach fruition. The replenishment can be done through internally generated inventions or through externally sourced inventions via licensing, alliance, or acquisition modes. Drawing on incentives- and knowledge-based views of the firm, we consider the difference in managerial decision making between centralized and decentralized research and development (R&D) organization designs and how it impacts firms’ propensities to draw on externally sourced inventions. As compared with centralized designs, decentralized designs are associated with greater incentives for managers to replenish their firms’ pipelines but are limited in terms of intraorganizational knowledge flows that can facilitate the creation of inventions. We explore these mechanisms using a novel data set of firms’ sourcing decisions within the pharmaceutical industry between 1996 and 2015. We find that firms with decentralized R&D designs replenish their pipelines with a higher proportion of externally sourced inventions than do firms with centralized designs. This difference is found to be mainly attributed to external sourcing via licensing and for inventions of moderate novelty. This study offers an important contribution to the question of how firms organize for innovation, highlighting the relationship between internal R&D organization design and the external sourcing of inventions. In so doing, it illustrates that the choice of organization design in terms of centralization or decentralization can shape a firm’s locus of innovation.

Mapping the Evolution of Digital Business Research: A Bibliometric Review

Prevalent digital technologies have changed the landscape of business. There have been a growing number of studies investigating the intersection of digital technologies and business. This study aimed to map the academic literature in digital business by adopting a bibliometric approach. In this study, we considered 1868 articles spanning twenty years, between 2000 and early 2021. Specifically, the study focused on the trends of research in digital business, popular publication sources, highly cited articles and productive researchers, and popular themes and their changes over time.

The Effects of Digital Technology on Opportunity Recognition

Recognizing opportunities enabled by digital technology (DT) has become a competitive necessity in today’s digital world. However, opportunity recognition is a major challenge given the influence of DT, which not only disperses agency across various actors, but also blurs boundaries between customers, companies, products, and industries. As a result, traditional entrepreneurship knowledge needs to be rethought and the effects of DT on opportunity recognition need to be better understood. Drawing from opportunity recognition theory – as one of the central theories in the entrepreneurship domain – this study builds on a structured literature review to identify and explain three direct as well as three transitive effects of DT on opportunity recognition. These effects have been validated with real-world cases as well as interviews with academics and practitioners. In sum, this study contributes to descriptive and explanatory knowledge on the evolution from traditional to digital entrepreneurship. As a theory for explaining, the findings extend opportunity recognition theory by illuminating how and why DT influences opportunity recognition. This supports research and practice in investigating and managing opportunities more effectively.

Data-Induced Rationality and Unitary Spaces in Interfirm Collaboration

The real-time data transfer between collaborating companies allows them to represent and control activities across firm boundaries, providing new ways to organize collaborative efforts. We conducted an inductive multiple case study of five long-term relationships to examine the effects of data-intensive technologies on the organization and management of collaborative relationships in industrial companies. Our analysis shows how the delegation of digital activities into specialized digital units fostered data-driven mindsets and data-driven interactions that jointly formed a holistic data-induced rationality for managing the relationship. Together, the compartmentalization of digital collaboration and the data-induced rationalities turned these units into “unitary spaces,” organizational enclosures where structural tensions and competing demands were temporarily suspended to foster single-minded pursuit of collaborative short-term benefits for the partner company.

Transformational IT Leaders and Digital Innovation

Does formal IT governance encourage innovation in the traditional domains of the IT function at the expense of new forms of "digital" innovation? We report on a study of 158 IT managers and leaders to understand the conditions under which transformational IT leadership can drive innovation in traditional forms of IT, as well as in the emerging "digital" domain. We find that highly formal IT governance practices can reduce ability of transformational IT managers and leaders to innovate in both domains, and this effect is greater for digital innovation. In stable cultures the moderation effect was strengthened, while insignificant in change cultures. We distinguish between IT innovation and digital innovation and operationalize this distinction, finding that in contexts with stability culture, the moderation is stronger for digital innovation than for traditional IT innovation.

Role of Digital Economy in Rebuilding and Sustaining the Space Governance Mechanisms

The need for sustainable corporate governance has gained the interests of researchers for a while now and it has been found as a very significant component of successful organizational operations. The current paper has examined the role of sustainable corporate governance in achieving sustainable economic space along with measuring the indirect impact of technological innovation and IT governance on the whole process. This paper has followed the quantitative-positivism approach to measure the hypotheses developed in the study. The population considered in this study are the managers currently employed in the corporate sector in China (N = 310). The data is analyzed using the Smart-PLS 3.3.3 software for checking the data for preliminary screening and the measurement of hypotheses. The findings of the study show that the three components of sustainable corporate governance, i.e., concern for employees, sustainable corporate governance awareness, and the environmental aspects have a significant as well as a positive effect on technological innovation and hence on the sustainable economic space. Similarly, the study has recorded a significant moderating effect of IT governance on the relationship of technological innovation and the sustainable economic space. Overall, it can be seen that corporate governance, innovative technology, and a sustainable digital economy share a reciprocal relationship. Where corporate governance helps as a supporting force to keep both innovation and sustainability in action. Whereas IT governance provides enhanced communication and delivery of public services, business, and advanced human capital. The study will be of high advantage for the corporate sector in China for devising and modifying their policies that consider the employee's concerns for the governance mechanisms prevailing at priority in the organizations. Further, it will be interesting for the organizations to incorporate the IT governance mechanism in their technological innovations for achieving a sustainable economic space.

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.

The Effect of Role-Based Product Representations on Individual and Team Coordination Practices: A Field Study of a Globally Distributed New Product Development Team

The investigation of the appealing indication that a modular product architecture is best associated to a loosely coupled organizational structure—that is, the mirroring hypothesis—has produced contradictory evidence, especially in the dynamic and ambiguous context of new product development. By integrating modularity theory and product-representation theories, we investigate how individual agency affects coordination in teams developing modular products. We conducted a field study of Flower-Net, a globally distributed team in a major IT company, engaged with the development of a modular software using agile practices. Our grounded model shows that, whereas top managers defined the product as modular and coordinated work accordingly, individuals developed different representations of the product’s architecture and conflicting individual coordination practices. We traced the individual development of product architecture representations back to the individual interpretations of organizational roles as more or less “segmented.” Conflicting individual practices, associated to different role-based product representations, were not addressed by the team—that developed a state of illusory concordance—and impaired the functioning of the team. This study contributes to the literature on modularity and the mirroring hypothesis by proposing individual role-based representations as an underexplored level of analysis for the matching between product and organizational modularity (Mirroring Hypothesis II). It also contributes to the debate on how representations affect team coordination, by detailing how role-based product representations can influence team members’ divergence and sustain illusory concordance.

Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment

This study aims to explore the direct impact of the digital orientation, Internet of Things (IoT) and digital platforms on the sustainable digital innovation in the context of the digital economy and frugal environment. This study also investigated the mediating role of the digital platforms in these relations. The study was based on the quantitative research design and data were collected from the 397 CEOs and managing directors of Small and Medium Enterprises in Pakistan. Correlation and structural equation modeling approaches were applied for the analysis and testing of the hypotheses. Results revealed that the digital orientation, IoT and digital platform are major antecedents of the sustainable digital innovation. Results also show that the digital platforms mediate between both digital orientation-sustainable digital innovation link and IoT-sustainable digital innovation link. The rapid pace of change in the technology has forced the business organizations to think out of box and align their operational mechanism accordingly. The need for the sustainable digital innovation is a major need of the current decade for meeting the increasing demands of the society in a sustainable way. Organizations, especially SMEs, should be able to deal with these challenges and rapid technological transformations through cost effective frugal business models. The frugal innovation is an important element of sustainable digital innovation enables SMEs to reduce resources usage and waste and to enhance sustainable economic activities. In this way, they can develop and gain advantages in this highly competitive digital environment. This is the first study showing the bright harmony of the digital orientation, IoT and digital platforms for achieving the sustainable digital innovation in the rapid evolving digital economy.

An Integrated Framework for Examining Innovation Alignment in Organizations

Innovation has been promoted as a panacea to solve the long-standing problem of how organizations deal with complexities associated with uncertainty and instability in ever changing environments. information systems (IS) research focusing on innovation has adopted several perspectives to reveal a rich context in which the innovation surfaces as a phenomenon. Examination of a rich context may contribute to a better understanding of an extent to which uncertainty and instability can affect or be affected by innovation strategies that require various innovation efforts in an organization. In this regard, one of the most critical issues is to ensure that these innovation efforts can achieve a successful outcome via their strategic and structural alignment. In this research, we propose an integrated framework that addresses an innovation alignment issue by employing three high-level notions (strategic dimensions, structural characteristics, strategizing acts). The integrated framework has been used rigorously in two cases for an explorative purpose. Our interpretation of the evidence suggests that strategizing act, as a high-level notion has an explanatory power to articulate the associations between strategic dimensions and structural characteristics. Among other findings, we have observed that the closed, incremental and process-oriented innovation strategy is particularly relevant to the corporate level whereas radical, product-oriented, and partially open innovation strategy is associated with a more exclusive innovation structure.

Digital innovation in context

Purpose

The purpose of this paper is to investigate how digital innovation processes emerge and evolve in organizational settings, and how serendipitous and unbounded digital innovations affect organizations’ overall digital directions.

Design/methodology/approach

The authors draw on an interpretive case study of the Church of Sweden, tracing in detail the design, deployment and governance of an interactive website for digital prayer, the Prayer Web (PW).

Findings

The findings show how the site came about in a serendipitous manner, created by an advertising agency as part of a marketing campaign. In turn, the unbounded nature of digital innovation was revealed as the wide and rapid adoption of the PW raised issues concerning the church’s overall digital direction linked to centralized control, as well as the nature and role of pastors, prayer and communities, as the site allowed people to post prayers and spread their messages (initially with no moderation).

Originality/value

The authors explore the serendipitous and unbounded ways in which digital innovation emerged and evolved in a traditional organization with a long legacy as an important societal institution. The paper contributes by generating rich insights on the role of the distinct aspects of digital technology in serendipitous and unbounded digital innovation. It particularly highlights how the editability and reprogrammability of digital artifacts triggered unexpected new behaviors and governance requirements in the organization under study. The authors encourage further research into the interrelationship between multiple unbounded and serendipitous digital innovations in an organization over time.

Digital Innovation and Institutional Entrepreneurship: Chief Digital Officer Perspectives of their Emerging Role

In this study, we explore the role of Chief Digital Officer (CDO) through the perspectives of CDOs in thirty-five organizations. In enacting their emerging role, CDOs must navigate the existing institutionalized context of established information technology (IT) roles and respective jurisdictional claims. We find that CDOs intentionally draw on the term “digital” to distance themselves from existing executive roles in order to gain legitimacy. CDOs as institutional entrepreneurs take a focal role in both: (1) articulating and developing the emerging “digital” logic of action and (2) enacting this digital logic through strategies such as grafting, bridging, and decoupling to navigate tensions between the existing and emerging approaches to innovation with digital technologies.

Technological change, information processing and supply chain integration

Purpose

Technologies change quickly in the automotive industry. This can provide opportunities to firms from emerging economies who try to enter the world stage of automotive production, provided they can react to this more nimbly than established competitors. How technological change affects the supply chain coordination of incumbents from developed economies and new entrants from emerging economies should strongly determine the speed of competitive reaction. By using the example of automotive transmission development, the purpose of this paper is to provide a conceptual model for the analysis and offer research propositions.

Design/methodology/approach

The authors build a conceptual model based on information processing theory and offer research propositions based on case study evidence of four automotive original equipment manufacturers (OEMs) and five suppliers.

Findings

The authors find symptoms of two larger trends: increasing specialization and technological linkages and a need to increase external supply chain integration beyond traditional structures. Comparing the effects on Japanese and German incumbents, the authors find that increasing external supply chain linkages proves to be harder for Japanese OEMs. Tight links and routines in the Japanese supply chain networks may harm OEM efficiency under the new technological conditions, e.g. the lack of complete part specifications and high demands for customization. Looking at effects on emerging market firms, Chinese OEMs use quasi-open modular production settings in transmission development and lean strongly on inputs from specialized foreign tier-one suppliers. Speed advantages must be weighed against long-term disadvantages of dependence and insufficient R&D investments.

Research limitations/implications

The study explores how technological change affects inter-firm development processes. The authors propose a framework and hypotheses based on information processing theory and link the findings to the discussion on the impact of national institutional context on supply chain coordination.

Practical implications

OEMs wanting to adapt complex existing internal structures to the changing demands for information processing should focus first on improving internal capacities by improving the amount and richness of information flow. Implementing new standards for simultaneous and standardized software development across the supply chain is a key point for this. A second step should be to boost the internal capacity to process higher richness of information, i.e. to understand the meta-knowledge necessary to integrate across technological areas in the development of electronic control units (ECUs).

Originality/value

The authors draw on original interview data in developed and emerging markets and information processing theory to explore the complexity of inter-firm coordination in automotive supply chains.

Dynamic Capabilities of Decision-oriented Service Systems

A new class of information system architecture, decision-oriented service systems, is spreading more and more. Decision-oriented service systems provide services that support decisions in business processes and products based on the capabilities of cloud-computing environments. To pave the way for the creation of design methods of business processes and products based on decision-oriented service systems, this article introduces a capability-oriented approach. Starting from technological capabilities, more abstract operational and dynamic capabilities are created. The framework created is based on an integrated conceptualization of decision-oriented service systems that allows capturing synergetic effects. By creating the framework, the gap between the technological capabilities of technologies and the strategic goals of enterprises shall be narrowed.

Managing Technological Change in the Digital Age: The Role of Architectural Frames

Inspired by Herbert Simon's notion of nearly decomposable systems, researchers have examined modularity as a powerful approach to manage technological change in product innovation. We articulate this approach as the hierarchy-of-parts architecture and explain how it emphasizes decomposition of a design into loosely coupled parts and subsequent aggregation of these into an industrial product. To realize the scale benefits of modularity, firms successively freeze design specifications before production and therefore only allow limited windows of functionality design and redesign. This makes it difficult to take advantage of the increased speed by which digitized products can be developed and modified. To address this problem, we draw on Christopher Alexander's notion of design patterns to introduce a complementary approach to manage technological change that is resilient to digital technology. We articulate this approach as the network-of-patterns architecture and explain how it emphasizes generalization of ideas into patterns and subsequent specialization of patterns for different design purposes. In response to the increased digitization of industrial products, we demonstrate the value of complementing hierarchy-of-parts thinking with network-of-patterns thinking through a case study of infotainment architecture at an automaker. As a result, we contribute to the literature on managing products in the digital age: we highlight the properties of digital technology that increase the speed by which digitized products can be redesigned; we offer the notion of architectural frames and propose hierarchy-of-parts and network-of-patterns as frames to support innovation of digitized products; and, we outline an agenda for future research that reconsiders the work of Simon and Alexander as well as their followers to address key challenges in innovating digitized products.