IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v75y2023ics0160791x23002002.html
   My bibliography  Save this article

How organizational unlearning leverages digital process innovation to improve performance: The moderating effects of smart technologies and environmental turbulence

Author

Listed:
  • Wang, Xiangyang
  • Liu, Zhiyi
  • Li, Jiamin
  • Lei, Xuefei

Abstract

Digital process innovation has become the key for enterprises to implement digital transformation to optimize production and operation. However, as a radical change, digital process innovation may encounter strong inertia and resistance. How to overcome them to actively promote digital process innovation is crucial for enterprises. Building on organizational change theory, this study introduces organizational unlearning, smart technologies and environmental turbulence to explore how to promote digital process innovation by getting rid of inertia, thus improving performance. This study empirically tests 212 valid samples from Chinese enterprises using partial least squares structural equation modeling (PLS-SEM) and PROCESS. The results show that digital process innovation mediates the relationship between organizational unlearning and enterprise performance. Also, both smart technologies and environmental turbulence positively moderate the mediation of digital process innovation on the association between organizational unlearning and enterprise performance. This study reveals that organizational unlearning, smart technologies and environmental turbulence are powerful factors to break organizational inertia and promote digital process innovation, which provides fresh and significant insights of how to get rid of inertia in the process of digital transformation for academia and practitioners.

Suggested Citation

  • Wang, Xiangyang & Liu, Zhiyi & Li, Jiamin & Lei, Xuefei, 2023. "How organizational unlearning leverages digital process innovation to improve performance: The moderating effects of smart technologies and environmental turbulence," Technology in Society, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:teinso:v:75:y:2023:i:c:s0160791x23002002
    DOI: 10.1016/j.techsoc.2023.102395
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X23002002
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2023.102395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    2. Bohnsack, René & Kurtz, Hannes & Hanelt, André, 2021. "Re-examining path dependence in the digital age: The evolution of connected car business models," Research Policy, Elsevier, vol. 50(9).
    3. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    4. Brian T. Pentland & Martha S. Feldman & Markus C. Becker & Peng Liu, 2012. "Dynamics of Organizational Routines: A Generative Model," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1484-1508, December.
    5. Gautam Dutta & Ravinder Kumar & Rahul Sindhwani & Rajesh Kr. Singh, 2021. "Digitalization priorities of quality control processes for SMEs: a conceptual study in perspective of Industry 4.0 adoption," Journal of Intelligent Manufacturing, Springer, vol. 32(6), pages 1679-1698, August.
    6. Man Chen & Zhi Yang & Wenyu Dou & Feng Wang, 2018. "Flying or dying? Organizational change, customer participation, and innovation ambidexterity in emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 97-119, March.
    7. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.
    8. Chirumalla, Koteshwar, 2021. "Building digitally-enabled process innovation in the process industries: A dynamic capabilities approach," Technovation, Elsevier, vol. 105(C).
    9. Yu Gao & Xiuyun Yang & Shuangyan Li, 2022. "Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
    10. Lyu, Chongchong & Zhang, Feng & Ji, Jing & Teo, Thompson S.H. & Wang, Ting & Liu, Zifan, 2022. "Competitive intensity and new product development outcomes: The roles of knowledge integration and organizational unlearning," Journal of Business Research, Elsevier, vol. 139(C), pages 121-133.
    11. Gerard P. Hodgkinson, 1997. "Cognitive Inertia in a Turbulent Market: the Case of UK Residential Estate Agents," Journal of Management Studies, Wiley Blackwell, vol. 34(6), pages 921-945, November.
    12. Ágnes Szukits, 2022. "The illusion of data-driven decision making – The mediating effect of digital orientation and controllers’ added value in explaining organizational implications of advanced analytics," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(3), pages 403-446, September.
    13. Shubham Sharma & Usha Lenka, 2022. "On the shoulders of giants: uncovering key themes of organizational unlearning research in mainstream management journals," Review of Managerial Science, Springer, vol. 16(6), pages 1599-1695, August.
    14. Ashrafi, Amir & Zare Ravasan, Ahad & Trkman, Peter & Afshari, Samira, 2019. "The role of business analytics capabilities in bolstering firms’ agility and performance," International Journal of Information Management, Elsevier, vol. 47(C), pages 1-15.
    15. Blichfeldt, Henrik & Faullant, Rita, 2021. "Performance effects of digital technology adoption and product & service innovation – A process-industry perspective," Technovation, Elsevier, vol. 105(C).
    16. Aydiner, Arafat Salih & Tatoglu, Ekrem & Bayraktar, Erkan & Zaim, Selim & Delen, Dursun, 2019. "Business analytics and firm performance: The mediating role of business process performance," Journal of Business Research, Elsevier, vol. 96(C), pages 228-237.
    17. Jie Zhen & Cejun Cao & Hanguang Qiu & Zongxiao Xie, 2021. "Impact of organizational inertia on organizational agility: the role of IT ambidexterity," Information Technology and Management, Springer, vol. 22(1), pages 53-65, March.
    18. Yang, Kuo-Pin & Chou, Christine & Chiu, Yu-Jen, 2014. "How unlearning affects radical innovation: The dynamics of social capital and slack resources," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 152-163.
    19. Kock, Alexander & Gemünden, Hans Georg, 2016. "Antecedents to Decision-making Quality and Agility in Innovation Portfolio Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 85099, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    20. Fernández-Pérez, Virginia & Fuentes-Fuentes, María del Mar & Bojica, Ana, 2012. "Strategic flexibility and change: The impact of social networks," Journal of Management & Organization, Cambridge University Press, vol. 18(1), pages 2-15, January.
    21. Jiahe Chen & Yu-Wei Chang, 2023. "How smart technology empowers consumers in smart retail stores? The perspective of technology readiness and situational factors," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-24, December.
    22. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    23. Zhao, Yi & Kong, Shaoqi, 2022. "Firms’ openness in specialized search and digital innovation among process-oriented mining enterprises: A moderated mediation model," Resources Policy, Elsevier, vol. 75(C).
    24. Zhang, Feng & Zhu, Lei, 2021. "Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism," Journal of Business Research, Elsevier, vol. 133(C), pages 183-193.
    25. Domenica Lavorato & Palmira Piedepalumbo, 2023. "How Smart Technologies Affect the Decision-Making and Control System of Food and Beverage Companies—A Case Study," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    26. Nasiri, Mina & Ukko, Juhani & Saunila, Minna & Rantala, Tero, 2020. "Managing the digital supply chain: The role of smart technologies," Technovation, Elsevier, vol. 96.
    27. Ilse Hellemans & Amanda J. Porter & Damla Diriker, 2022. "Harnessing digitalization for sustainable development: Understanding how interactions on sustainability‐oriented digital platforms manage tensions and paradoxes," Business Strategy and the Environment, Wiley Blackwell, vol. 31(2), pages 668-683, February.
    28. Surdu, Irina & Narula, Rajneesh, 2021. "Organizational learning, unlearning and re-internationalization timing: Differences between emerging- versus developed-market MNEs," Journal of International Management, Elsevier, vol. 27(3).
    29. Bendik Bygstad & Egil Øvrelid, 2020. "Architectural alignment of process innovation and digital infrastructure in a high-tech hospital," European Journal of Information Systems, Taylor & Francis Journals, vol. 29(3), pages 220-237, May.
    30. Ziyi Zhao & Yulu Yan, 2023. "The Role of Organizational Unlearning in Manufacturing Firms’ Sustainable Digital Innovation: The Mechanism of Strategic Flexibility and Organizational Slack," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    31. Weijian Du & Mengjie Li, 2019. "Government support and innovation for new energy firms in China," Applied Economics, Taylor & Francis Journals, vol. 51(25), pages 2754-2763, May.
    32. Dan Lovallo & Alexander L. Brown & David J. Teece & David Bardolet, 2020. "Resource re‐allocation capabilities in internal capital markets: The value of overcoming inertia," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1365-1380, August.
    33. Elia, Stefano & Giuffrida, Maria & Mariani, Marcello M. & Bresciani, Stefano, 2021. "Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce," Journal of Business Research, Elsevier, vol. 132(C), pages 158-169.
    34. Truant, Elisa & Broccardo, Laura & Dana, Léo-Paul, 2021. "Digitalisation boosts company performance: an overview of Italian listed companies," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cubillas-Para, Clara & Cegarra-Navarro, Juan Gabriel & Vătămănescu, Elena-Mădălina, 2024. "Gliding from regenerative unlearning toward digital transformation via collaboration with customers and organisational agility," Journal of Business Research, Elsevier, vol. 177(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fumeng Li & Jiancheng Long & Wu Zhao, 2022. "Mining Braces of Innovation Linking to Digital Transformation Grounded in TOE Framework," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    2. Ziyi Zhao & Yulu Yan, 2023. "The Role of Organizational Unlearning in Manufacturing Firms’ Sustainable Digital Innovation: The Mechanism of Strategic Flexibility and Organizational Slack," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    3. Su, Jingqin & Zhang, Yajie & Wu, Xianyun, 2023. "How market pressures and organizational readiness drive digital marketing adoption strategies' evolution in small and medium enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    4. Aboobucker Ilmudeen, 2022. "Leveraging IT-enabled dynamic capabilities to shape business process agility and firm innovative capability: moderating role of turbulent environment," Review of Managerial Science, Springer, vol. 16(8), pages 2341-2379, November.
    5. Zibiao Li & Han Li & Siwei Wang, 2022. "How Multidimensional Digital Empowerment Affects Technology Innovation Performance: The Moderating Effect of Adaptability to Technology Embedding," Sustainability, MDPI, vol. 14(23), pages 1-27, November.
    6. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    7. Liping Liu & Lichuan Cui & Qian Han & Chunyu Zhang, 2024. "The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    8. Yu, Feifei & Du, Hongyan & Li, Xiaotong & Cao, Jiayu, 2023. "Enterprise digitalization, business strategy and subsidy allocation: Evidence of the signaling effect," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    9. Mina Nasiri & Minna Saunila & Tero Rantala & Juhani Ukko, 2022. "Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 703-712, August.
    10. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    11. Chen Ren & Sang-Joon Lee & Chenxi Hu, 2023. "Digitalization Improves Enterprise Performance: New Evidence by Text Analysis," SAGE Open, , vol. 13(2), pages 21582440231, May.
    12. Annarelli, Alessandro & Battistella, Cinzia & Nonino, Fabio & Parida, Vinit & Pessot, Elena, 2021. "Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    13. Qiao, Penghua & Liu, Siting & Fung, Hung-Gay & Wang, Chen, 2024. "Corporate green innovation in a digital economy," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 870-883.
    14. Marie-Anne Le-Dain & Lamiae Benhayoun & Judy Matthews & Marine Liard, 2023. "Barriers and opportunities of digital servitization for SMEs: the effect of smart Product-Service System business models," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 359-393, March.
    15. Wei, Shuang & Liu, Weihua & Choi, Tsan-Ming & Dong, Jing-xin & Long, Shangsong, 2024. "The influence of key components and digital technologies on manufacturer's choice of innovation strategy," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1210-1220.
    16. Peng, Hui & Lu, Yaobin & Gupta, Sumeet, 2023. "Promoting value emergence through digital platform ecosystems: Perspectives on resource integration in China," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    17. Deon Montasser & Ruslan Prijadi & Tengku Ezni Balqiah, 2023. "The Mediating Effect of IT-Enabled Dynamic Capabilities and Organizational Readiness on the Relationship Between Transformational Leadership and Digital Business Model Innovation: Evidence From Indone," SAGE Open, , vol. 13(2), pages 21582440231, June.
    18. Shuochen Wei & Lifang Wang & Wenbo Jiang & Liwei Feng & Taiwen Feng, 2023. "How eco‐control systems enhance carbon performance via low‐carbon supply chain collaboration? The moderating role of organizational unlearning," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2536-2554, September.
    19. Chen, Zhongfei & Jiang, Kangqi, 2024. "Digitalization and corporate investment efficiency: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    20. Emmanuel P. Paulino, 2022. "Amplifying organizational performance from business intelligence: Business analytics implementation in the retail industry," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(2), pages 69-104.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:75:y:2023:i:c:s0160791x23002002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.