Investigating the impact of digital orientation on economic and environmental performance based on a strategy-structure-performance framework

Abstract

ABSTRACT As a strategic positioning that promotes the sustainable development, digital orientation (DO) is being deliberately implemented by firms in the Industry 4.0 era. Accordingly, it has attracted considerable attention from both practitioners and scholars. Based on a strategy-structure-performance (SSP) framework, this study aims to assess how DO influences the economic and environmental performance of a firm. The mediating role of supply chain internal and external collaboration is evaluated based on data collected through a survey of Chinese manufacturing firms. The results show that firms’ DO has a positive effect on a firm’s economic and environmental performance, and that this relationship is mediated by both internal and external collaboration. This study provides an in-depth understanding on how DO strategy affects firms’ performance through supply chain collaboration as a structure, from an SSP perspective. Finally, it proposes corresponding managerial suggestions for practitioners to improve performance.