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Influence of Digital Transformation Capability on Operational Performance

Author

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  • Jiatong Yu

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

  • Jiajue Wang

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

  • Taesoo Moon

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

Abstract

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

Suggested Citation

  • Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:7909-:d:851174
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    References listed on IDEAS

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    Cited by:

    1. Hongtao Wang & Wencheng Cao & Fei Wang, 2022. "Digital Transformation and Manufacturing Firm Performance: Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    2. Guoen Xia & Zenghui Yu & Xuwu Peng, 2023. "How Does Enterprise Digital Transformation Affect Total Factor Productivity? Based on the Information Intermediary Role of Analysts’ Attention," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    3. Hongyang Wang & Baizhou Li, 2023. "Research on the Synergic Influences of Digital Capabilities and Technological Capabilities on Digital Innovation," Sustainability, MDPI, vol. 15(3), pages 1-14, February.

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