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Impact of Digital Strategic Orientation on Organizational Performance through Digital Competence

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  • Jiatong Yu

    (College of Economics and Management, China Jiliang University, Hangzhou 310018, China)

  • Taesoo Moon

    (School of Management, Dongguk University, Gyeongju 38066, Korea)

Abstract

In the era of the digital economy, enterprises need a comprehensive digital transformation of strategy, business, organization, competence, and operation. However, being limited themselves to the development of digital technology, previous studies mainly focused on the development and application of digital technology, single case studies, and multi-case studies of digital transformation. Few researchers systematically studied the digital transformation mechanism at the organizational level. Therefore, this study explored the relationship between a strategic orientation and organizational performance though digital competence at the organizational level. To accomplish the task, this study basically constructed the dimensions of digital competence according to core competence theory. Digital competence contains three hub-factors: digital infrastructure, digital integration, and digital management. This study collected 160 questionnaires from Chinese enterprises and analyzed the data using SmartPLS 3. This study analyzed the positive relationship between digital strategic orientation, digital competence, and organization performance. This study identified the importance of digital competence through the empirical analysis of enterprises that are undergoing digital transformation or had completed a digital transformation. Therefore, enterprises need to pay attention to the impact of digital competence on organizational performance. Digital competence is a reshaping of corporate resources when facing a turbulent digital environment. Moreover, digital competence can ultimately achieve value delivery through the improvement of enterprise organizational performance.

Suggested Citation

  • Jiatong Yu & Taesoo Moon, 2021. "Impact of Digital Strategic Orientation on Organizational Performance through Digital Competence," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9766-:d:625861
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    1. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    2. Guanqiao Zhang & Tao Wang & Yuhan Wang & Shuai Zhang & Wenhao Lin & Zixin Dou & Haitao Du, 2023. "Study on the Influencing Factors of Digital Transformation of Construction Enterprises from the Perspective of Dual Effects—A Hybrid Approach Based on PLS-SEM and fsQCA," Sustainability, MDPI, vol. 15(7), pages 1-22, April.
    3. Xiurui Xu & Guangming Hou & Junpeng Wang, 2022. "Research on Digital Transformation Based on Complex Systems: Visualization of Knowledge Maps and Construction of a Theoretical Framework," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    4. Songsong Cheng & Qunpeng Fan & Minghao Huang, 2023. "Strategic Orientation, Dynamic Capabilities, and Digital Transformation of Commercial Banks: A Fuzzy-Set QCA Approach," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    5. Daniela Roxana Vuță & Eliza Nichifor & Ioana Bianca Chițu & Gabriel Brătucu, 2022. "Digital Transformation—Top Priority in Difficult Times: The Case Study of Romanian Micro-Enterprises and SMEs," Sustainability, MDPI, vol. 14(17), pages 1-14, August.
    6. Marcia Sierdovski & Luiz Alberto Pilatti & Priscila Rubbo, 2022. "Organizational Competencies in the Development of Environmental, Social, and Governance (ESG) Criteria in the Industrial Sector," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    7. Xiao Han & Yang Zheng, 2022. "Driving Elements of Enterprise Digital Transformation Based on the Perspective of Dynamic Evolution," Sustainability, MDPI, vol. 14(16), pages 1-19, August.

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