Examining the Evolution of Digital Innovation and Its Impact on Organizational Growth

Abstract

Organizational operations have been modified by using the rise of digital innovation, which has increased consumer interaction, accelerated efficiency, and stimulated overall growth. But obstacles like converting organizational adoption charges and a quickly evolving era would possibly make it more difficult to generalize effects across of different sectors and ancient intervals. To overcome these constraints, a thorough examination of the impact of digital innovation on organizational growth is carried out in this study. This study investigates the connection among Digital infrastructure (DI), Digital Innovation practices (DIP), Adoption of advanced digital technologies (ADT), Leadership support (LS), Organizational growth (OG), and Employee digital capabilities (EDS) utilizing Structural Equation Modeling (SEM) and CFA test. SEM is used to evaluate the causal pathways between constructs and the connections between latent variables and their indicators. CFA is a method used to validate the dimension model by examining the relationships between observed indicators and their underlying constructs. A systematic questionnaire with a Likert scale rating was used to collect data from 600 populations. The measurement model assessed the validity and reliability of latent constructs, while the structural model analyzed the relationship between constructs based on the proposed hypotheses. The structural model revealed that DI, LS, and ADT are positively connected to the DTP, and OG, between digital innovations on organizational growth. (β = 0.58,0.54,0.60 and 0.62,p < 0.05), providing well support for hypotheses 1, 2, 4, and 5. The SEM and CFA confirm the robustness of these relationships. The findings underscore the critical role of digital infrastructure and leadership in driving effective digital practices and fostering growth.