Nexus of Digital Organizational Culture, Capabilities, Organizational Readiness, and Innovation: Investigation of SMEs Operating in the Digital Economy

Muhammad Yasir,Magdalena Radulescu,Zahid Yousaf,Zhang Zhen

doi:10.3390/su13020720

Muhammad Yasir, Magdalena Radulescu + Show 2 more

Open Access

https://doi.org/10.3390/su13020720

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Journal: Sustainability	Publication Date: Jan 13, 2021
Citations: 59	License type: CC BY 4.0

Affiliation: Xi'an University of Architecture and Technology

Abstract

This current study was conducted in order to develop a digital innovation model based on the digital organizational culture, digital capability, and organizational readiness. This study explores how the organizational readiness plays a mediating role between the digital capabilities and digital innovation and between the digital organizational culture and digital innovation. For data collection, the survey instrument was used to collect data from 227 SMEs of ICT industry in Pakistan. The findings have revealed a significant connection of the digital organizational culture and digital capabilities with the digital innovation. Second, the organizational readiness mediates between the digital capabilities, digital organizational culture, and digital innovation. The study has empirically confirmed how to flourish a mechanism of the digital innovation in the SMEs. Moreover, the findings suggest some substantial implications for the management by focusing on the digital capabilities and digital organizational culture as a fundamental predictor for the digital innovation via organizational readiness.

Highlights

In the current decade, the notion of digital innovation has largely been acknowledged by the researchers to create competitiveness for the all kinds of businesses [1]
These findings suggested that organizational readiness partially mediates between the digital organizational culture and the digital innovation
After organizational readiness is added, the coefficient of digital capabilities is reduced from (β = 0.19** to β = 0.11*), while the coefficient of the organizational readiness is (β = 0.42**). These findings suggested that the organizational readiness partially mediates between the digital capabilities and the digital innovation

Summary

Introduction

The notion of digital innovation has largely been acknowledged by the researchers to create competitiveness for the all kinds of businesses [1]. Businesses majorly depend on the persistent and influential role of digital innovations to achieve superior performance [2]. The digital innovation represents an emerging phenomenon of increasing importance for the SMEs of ICT businesses [1]. Literature shows that only a few studies have been conducted in the ICT and SMEs in order to explore the preconditions for the development of digital innovation [6]. Researchers overlooked some important factors that accelerate the process of digital innovation within the SMEs of ICT industry. Existing studies scarcely explained the mechanism of improved digital innovation in the SMEs of Sustainability 2021, 13, 720.

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Results

Conclusion