Unlocking the potential of digital transformation: a dual-chain mediation model for product innovation performance in manufacturing

Abstract

ABSTRACT This study investigates how digital transformation enables product innovation performance. Drawing on the two factors of collaboration, specifically interaction and integration, this research introduces variables encompassing both intra- and inter-organisational communication as well as resource integration. A dual-chain mediation model is constructed to examine the underlying mechanism by which digital transformation enhances product innovation performance in manufacturing firms. Results from 268 questionnaires indicate: (1) Digital transformation alone is not enough to drive product innovation performance. Instead, firms need to enhance both intra- and inter-organisational communication to promote resource integration. (2) The chain mediation effect of intra-organisational communication and resource integration is stronger than that of inter-organisational communication and resource integration. This suggests that merely improving intra-organisational communication through digital transformation is insufficient and that increased resource integration is necessary to effectively promote product innovation performance. Conversely, when digital transformation enhances inter-organisational communication, it increases product innovation performance. (3) A fit effect is observed between intra- and inter-organisational communication, significantly influencing resource integration. This research contributes to the existing literature by elucidating the two-stage logic of collaboration and highlighting the complementary effect of intra- and inter-organisational communication on resource integration between digital transformation and product innovation performance.