Effects of digital orientation on organizational resilience: a dynamic capabilities perspective

Abstract

PurposeThis study aims to investigate the impact of digital orientation (DO) on organizational resilience (OR) and explore the contingency effects of human resource slack and nature of enterprise ownership.Design/methodology/approachThe model hypotheses were tested using fixed effects regression on panel data collected from Chinese A-share listed manufacturing firms spanning from 2007 to 2020.FindingsDO has a positive effect on OR. Human resource slack positively moderates the relationship between DO and OR. Additionally, DO enhances OR more effectively in non-state-owned firms than in state-owned firms.Research limitations/implicationsThis study relies on data from a single industry from a single country.Practical implicationsThe study supports that firms facing uncertainty, risk and pressure should promptly develop their DO strategy. Firms can derive greater resilience from implementing a DO strategy when they have a high-level human resource pool. State-owned enterprises will benefit from a DO strategy if they make some adaptive changes in leadership, structure, culture and mindset aspects.Originality/valueThis study is the first to examine the relationship between DO and OR, contributing to the existing literature on digital transformation and organizational resilience. It offers valuable insights for practitioners and policymakers seeking to adapt their organizations for the digital era and foster predictive, defensive and growth responses strategies in a dynamic business environment.

The Impact of Digital Orientation on New Product Development Performance: Does Knowledge Intensity Matter?

“…With the rise of digital technology and the development of the digital economy, the dynamic capability view has become an essential theoretical perspective for research on enterprise digital transformation and innovation management in the digital context [7]. Several studies have found that digital technology can significantly reshape business processes [29], accelerate knowledge flow and sharing [30], and promote different forms of dynamic capabilities [31].…”

“…In addressing the identified gaps, this study adopts the dynamic capability view to explore the influence of digital orientation on NPD performance while also considering the potential impact of knowledge intensity on this relationship. The choice of dynamic capabilities as a theoretical framework is justified by its effectiveness in examining a firm's digital transformation [7], value creation and delivery in digital environments [8], and product development [9]. By leveraging the dynamic capability view, this research aims to provide a comprehensive understanding of how digital orientation contributes to NPD performance through dynamic capabilities such as exploitation, exploration, and ambidexterity capabilities, particularly in the context of knowledge-intensive firms, and to offer valuable insights for both theory and practice in the field of management.…”

Does Digitalization Strategy Affect Corporate Rent-Seeking? Evidence from Chinese-Listed Firms

“…First, a DS enhances internal operational efficiency. Highly digitalized firms not only optimize supply chain management processes like inventory, procurement, and production scheduling through technological means such as big data analysis [47,48], they are also assisted with accurately identifying and satisfying customer needs and market preferences [14,49]. By refining support systems for decision-making and effectively allocating internal resources [50], a DS strengthens the company's ability to sustain itself, reducing its dependence on specific external resources-including those provided by governments-thereby diminishing incentives for and the necessity of rent-seeking.…”

“…However, because rent-seeking is essentially invisible [12], it is imperative to not only audit and restrain such behaviors through state coercion but also to explore alternative methods, particularly through the management practices of enterprises themselves. With the rise of the digital economy, many enterprises have implemented a digitalization strategy, extensively integrating digital technology into their production and operations [13,14]. Digitalization strategy not only reshapes firms' operational models but also offers new opportunities to strengthen their ethical codes and governance structures [15].…”

“…The nature of enterprise ownership influences firms in terms of their organiza-tional design, decision-making processes, and resource allocation and utilization [28], thus potentially affecting the implementation of firms' digital strategies. Research suggests that the nature of corporate property rights plays a role in the impact of digital orientation on organizational resilience [14]. In addition, corporate rent-seeking behavior typically occurs among corporate executives, and the executives' characteristics influence their mindset and potential behavior [29].…”