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Digital Transformation and Firm Sustainable Growth: The Moderating Effects of Cross-border Search Capability and Managerial Digital Concern

Author

Listed:
  • Qi Yao

    (Chongqing Jiaotong University)

  • Hongjuan Tang

    (Chongqing Jiaotong University)

  • Francis Boadu

    (Kumasi Technical University)

  • Yu Xie

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

Abstract

Digital transformation is critical to enhancing the firms’ sustainable growth, but this association is rarely explored, especially in the emerging market literature. Building upon the dynamic capabilities perspective, we address how digital transformation affects firms’ sustainable growth. Particularly, we examine the moderating effects of cross-border search capability and managerial digital concerns on the digital transformation and firms’ sustainable growth link. Using a survey dataset by 289 firms from Chinese manufacturing and service industries, we perform a hierarchical linear model (HLM) analysis to test our hypotheses. Our results reveal that (1) digital transformation positively enhance firms’ sustainable growth; (2) cross-border search capability moderates the effects of digital transformation on firms’ sustainable growth; and (3) managerial digital concerns moderate the effects of digital transformation on firms’ sustainable growth. Our findings illustrate how cross-border search and managerial digital concern matters in firms’ sustainable growth. It further extends the scope of digital transformation research.

Suggested Citation

  • Qi Yao & Hongjuan Tang & Francis Boadu & Yu Xie, 2023. "Digital Transformation and Firm Sustainable Growth: The Moderating Effects of Cross-border Search Capability and Managerial Digital Concern," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4929-4953, December.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:4:d:10.1007_s13132-022-01083-x
    DOI: 10.1007/s13132-022-01083-x
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