IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i2p1040-1053.html
   My bibliography  Save this article

Effects of digitization on enterprise growth performance: Mediating role of strategic change and moderating role of dynamic capability

Author

Listed:
  • Na Li
  • Xiaohong Wang
  • Shaopeng Zhang

Abstract

The importance of enterprise digitization is growing. This study examines the influence of digitization on enterprise growth performance (GP), taking into account the mediating effects of strategic change (STR) and the moderating effects of dynamic capability (DY). Through an empirical examination of panel data for listed A‐share manufacturing enterprises in China from 2016 to 2020, we document a positive relationship between digitization and GP. Our results also indicate that STR plays a mediating role between digitization and GP while DY positively moderates the promoting effect of digitization on GP. This research helps to improve our understanding of the effect mechanism and boundary conditions of digitization in relation to GP. Further, our conclusions can offer guidance to help managers make informed decisions about enterprise digitization.

Suggested Citation

  • Na Li & Xiaohong Wang & Shaopeng Zhang, 2023. "Effects of digitization on enterprise growth performance: Mediating role of strategic change and moderating role of dynamic capability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1040-1053, March.
  • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1040-1053
    DOI: 10.1002/mde.3730
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3730
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.3730?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
    ---><---

    References listed on IDEAS

    as
    1. Son Le & Mark Kroll, 2017. "CEO international experience: Effects on strategic change and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(5), pages 573-595, July.
    2. 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.
    3. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    4. Lynn Wu & Bowen Lou & Lorin Hitt, 2019. "Data Analytics Supports Decentralized Innovation," Management Science, INFORMS, vol. 65(10), pages 4863-4877, October.
    5. YU, Jie & Subramanian, Nachiappan & Ning, Kun & Edwards, David, 2015. "Product delivery service provider selection and customer satisfaction in the era of internet of things: A Chinese e-retailers’ perspective," International Journal of Production Economics, Elsevier, vol. 159(C), pages 104-116.
    6. Ken G. Smith & Curtis M. Grimm, 1987. "Environmental variation, strategic change and firm performance: A study of railroad deregulation," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 363-376, July.
    7. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
    8. Mahmood Hajli & Julian M. Sims & Valisher Ibragimov, 2015. "Information technology (IT) productivity paradox in the 21st century," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 64(4), pages 457-478, April.
    9. Gong, Qiguo & Yang, Yuru & Wang, Shouyang, 2014. "Information and decision-making delays in MRP, KANBAN, and CONWIP," International Journal of Production Economics, Elsevier, vol. 156(C), pages 208-213.
    10. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    11. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    12. Daniel Kiel & Julian M. Müller & Christian Arnold & Kai-Ingo Voigt, 2017. "Sustainable Industrial Value Creation: Benefits And Challenges Of Industry 4.0," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(08), pages 1-34, December.
    13. Fielke, Simon & Taylor, Bruce & Jakku, Emma, 2020. "Digitalisation of agricultural knowledge and advice networks: A state-of-the-art review," Agricultural Systems, Elsevier, vol. 180(C).
    14. Huiwen Su & Feiying Cai & Yunting Huang, 2022. "Institutional constraints and exporting of emerging‐market firms: The moderating role of innovation capabilities and digital transformation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2641-2656, October.
    15. Vu, Khuong & Hanafizadeh, Payam & Bohlin, Erik, 2020. "ICT as a driver of economic growth: A survey of the literature and directions for future research," Telecommunications Policy, Elsevier, vol. 44(2).
    16. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    17. Fan, Huan & Li, Gang & Sun, Hongyi & Cheng, T.C.E., 2017. "An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences," International Journal of Production Economics, Elsevier, vol. 185(C), pages 63-75.
    18. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    19. Mahmood Hajli & Julian M. Sims & Valisher Ibragimov, 2015. "Information technology (IT) productivity paradox in the 21st century," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 64(4), pages 457-478, April.
    20. Calvard, Thomas Stephen & Jeske, Debora, 2018. "Developing human resource data risk management in the age of big data," International Journal of Information Management, Elsevier, vol. 43(C), pages 159-164.
    21. Frederik von Briel & Per Davidsson & Jan Recker, 2018. "Digital Technologies as External Enablers of New Venture Creation in the IT Hardware Sector," Entrepreneurship Theory and Practice, , vol. 42(1), pages 47-69, January.
    22. Wamba, Samuel Fosso & Gunasekaran, Angappa & Akter, Shahriar & Ren, Steven Ji-fan & Dubey, Rameshwar & Childe, Stephen J., 2017. "Big data analytics and firm performance: Effects of dynamic capabilities," Journal of Business Research, Elsevier, vol. 70(C), pages 356-365.
    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. Liang, Lin & Li, Yan, 2024. "How does organizational resilience promote firm growth? The mediating role of strategic change and managerial myopia," 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. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    2. Manu Sharma & Anil Kumar & Sunil Luthra & Sudhanshu Joshi & Arvind Upadhyay, 2022. "The impact of environmental dynamism on low‐carbon practices and digital supply chain networks to enhance sustainable performance: An empirical analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1776-1788, May.
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Bryde, David J. & Giannakis, Mihalis & Foropon, Cyril & Roubaud, David & Hazen, Benjamin T., 2020. "Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 226(C).
    4. Li Cui & Hao Wu & Lin Wu & Ajay Kumar & Kim Hua Tan, 2023. "Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19," Annals of Operations Research, Springer, vol. 327(2), pages 825-853, August.
    5. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    6. 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).
    7. Bag, Surajit & Gupta, Shivam & Kumar, Sameer, 2021. "Industry 4.0 adoption and 10R advance manufacturing capabilities for sustainable development," International Journal of Production Economics, Elsevier, vol. 231(C).
    8. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    9. Wong, David T.W. & Ngai, Eric W.T., 2023. "The impact of advanced manufacturing technology, sensing and analytics capabilities, and planning comprehensiveness on sustained competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 265(C).
    10. Delgosha, Mohammad Soltani & Hajiheydari, Nastaran & Talafidaryani, Mojtaba, 2022. "Discovering IoT implications in business and management: A computational thematic analysis," Technovation, Elsevier, vol. 118(C).
    11. Padhi, Sidhartha S. & Mukherjee, Soumyatanu & Edwin Cheng, T.C., 2024. "Optimal investment decision for industry 4.0 under uncertainties of capability and competence building for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 267(C).
    12. Jafari, Hamid & Eslami, Mohammad H. & Paulraj, Antony, 2022. "Postponement and logistics flexibility in retailing: The moderating role of logistics integration and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
    13. Rodríguez-Espíndola, Oscar & Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Albores, Pavel & Emrouznejad, Ali, 2022. "Analysis of the adoption of emergent technologies for risk management in the era of digital manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    14. Jia, Fu & Blome, Constantin & Sun, Hui & Yang, Yang & Zhi, Bangdong, 2020. "Towards an integrated conceptual framework of supply chain finance: An information processing perspective," International Journal of Production Economics, Elsevier, vol. 219(C), pages 18-30.
    15. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    16. Battistoni, Elisa & Gitto, Simone & Murgia, Gianluca & Campisi, Domenico, 2023. "Adoption paths of digital transformation in manufacturing SME," International Journal of Production Economics, Elsevier, vol. 255(C).
    17. Tian, Meng & Chen, Yang & Tian, Guanghao & Huang, Wei & Hu, Chuan, 2023. "The role of digital transformation practices in the operations improvement in manufacturing firms: A practice-based view," International Journal of Production Economics, Elsevier, vol. 262(C).
    18. Shivam Gupta & Sachin Modgil & Samadrita Bhattacharyya & Indranil Bose, 2022. "Artificial intelligence for decision support systems in the field of operations research: review and future scope of research," Annals of Operations Research, Springer, vol. 308(1), pages 215-274, January.
    19. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    20. Zeng, Huixiang & Ran, Hangxin & Zhou, Qiong & Jin, Youliang & Cheng, Xu, 2022. "The financial effect of firm digitalization: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:44:y:2023:i:2:p:1040-1053. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.