Digital Orientation Research Articles

Exploring the Effects of Entrepreneurial and Digital Orientations on the Competitive Advantage of Saudi Firms: Is Strategic Agility the Missing Link?

This study explores the intricate relationships between entrepreneurial orientation (EO), digital orientation (DO), strategic agility (SA), and competitive advantage (CA) in Saudi firms. We investigate whether strategic agility serves as the missing link in these relationships. We examine direct and indirect effects among these constructs using structural equation modeling on data collected from 307 Saudi firms. The results confirm the direct positive links between EO and SA with CA. However, the findings also reveal a surprising result—there is no direct link between DO and CA. At the same time, both DO and EO exerted significant positive influences on SA. This study emphasizes the mediating role of SA. We find that SA partially mediates the relationship between EO and CA, underlining the importance of EO while pointing out the additional value given to this relationship by SA. Additionally, SA fully mediates the relationship between DO and CA, suggesting that firms must develop SA to translate their digital capabilities into CA. These results contribute to the strategic management literature by explaining the interplay between strategic orientations, agility, and competitive advantage in the Saudi context. They also provide practical implications for managers seeking to enhance the competitiveness of their firms during this digital age by showing that investing in SA in conjunction with entrepreneurial and digital resources is of paramount importance.

The impacts of digital and learning orientations on supply chain resilience

PurposeThis study quantitatively investigates the impacts of digital and learning orientations on supply chain resilience (SCR) and firm performance (FP), aiming to fill the gaps in understanding their specific impacts in the context of Industry 4.0 developments and supply chain disruptions.Design/methodology/approachThis study utilized survey techniques and structural equation modelling (SEM) to gather and analyse data through a questionnaire based on a seven-point Likert scale. Hypotheses were formulated based on an extensive literature review and tested using Amos software.FindingsThe study confirms SCR’s significant impact on FP, aligning with existing research on resilience’s role in organizational competitiveness. This study uncovers the nuanced impacts of digital and learning orientations on SCR and FP. Internal digital orientation (DOI) positively impacts SCR, while external digital orientation (DOE) does not. Specific dimensions of learning orientation – shared vision (LOS), open-mindedness (LOO) and intraorganizational knowledge sharing (LOI) – enhance SCR, while commitment to learning (LOC) does not. SCR mediates the relationship between DOI and FP but not between DOE and FP.Research limitations/implicationsThis research focuses on digital and learning orientations, recommending that future studies investigate other strategic orientations and examine the specific contributions of various digital technologies to SCR across diverse contexts.Practical implicationsThe empirical findings emphasize the significance of developing internal digital capabilities and specific learning orientations to enhance SCR and FP, aligning these initiatives with resilience strategies.Originality/valueThis study advances knowledge by distinguishing the impacts of internal and external digital orientations and specific learning dimensions on SCR and FP, offering nuanced insights and empirical validation.

Digitalization and digital innovation in developing the capability of a digital economy

Purpose Digital technology (DT) is a massive and robust tool for organizational success. This paper aims to examine the roles of digitalization and digital innovation (DI) in developing the capability of a digital economy. Design/methodology/approach The authors used a cross-sectional study to collect the data from the managers of Egyptian SME manufacturing firms. This study utilized 322 samples. Findings From applying the structural equation model (SEM), this study’s findings show that digital capability (DC) and digital orientation (DO) exert a positive effect on the firm’s digital economy capability (DEC). In addition, DC has a positive impact on DI. In contrast, digital technology self-efficacy (DTSE) negatively predicts DEC. This study’s results also confirm DO’s negative effect on DI. The DTSE is a positive enabler of DI that has also positively affected the DEC. The mediating results demonstrate that DI reinforces the positive connection between DO and DEC. On the other hand, DI does not mediate the connection between DO and DEC and between DTSE and DEC. Practical implications This study’s outcomes support policymakers and manufacturing organizations in employing DT to improve DEC and, thereby, develop firm performance and success. The study’s findings also encourage organizations to invest in bringing about a digital culture within them. Finally, by developing DT and DI, firms can nurture a conducive culture of creativity and forward-thinking. Originality/value This study directly overcomes the need for an integrated framework of all DI, DTSE, DO, DC and DEC. Furthermore, DI’s mediating contribution between DC and DEC, between DO and DEC and between DTSE and DEC adds fresh insights to the existing literature.

Digital orientation and organizational resilience: the contingent effect of dynamic capabilities

ABSTRACT This study examines the contingent effect of dynamic capabilities (sensing, seizing, and reconfiguration) on the relationship between digital orientation (DOR) and organizational resilience (ORES) in Nigerian public sector organizations (PSOs), framed by Dynamic Capabilities Theory (DCT). A quantitative approach was employed, with data collected from 306 PSO employees using a questionnaire. The analysis, conducted via Smart-PLS, reveals that DOR positively influences ORES. Both sensing and seizing capabilities significantly strengthen the DOR-ORES relationship, while reconfiguration shows no significant moderating effect. The findings highlight the role of dynamic capabilities in enhancing organizational resilience within the digital transformation context of PSOs. The study contributes to the limited empirical research on dynamic capabilities and their contingent role in PSO resilience, providing key implications for future research and organizational practices.

Expanding the boundaries of digital orientation research: Scale development and validation

Firms keep struggling to realize the benefits of digital transformation processes. Research, therefore, proposes implementing a firm-wide organizational configuration with a digital orientation (DO) fostering digital innovation and transformation initiatives. However, exploration of DO remains somewhat constrained as existing measurement approaches are limited to secondary data. In this study, we develop a new scale to measure DO, specifically in survey-based research. Leveraging survey data from 1,488 top executives of German companies and drawing on the resource-based view, we empirically validate that our scale captures the performance-enhancing effects of DO.

Do entrepreneurial and digital orientations impact e-marketing adoption? The COVID-19 pandemic context1

Abstract Paper’s objectives The purpose of the present study is to verify the influence of entrepreneurial orientation (EO) and digital orientation (DO) on e-marketing implementation (EMI) and on e-promotion and e-distribution adoption in the context of the COVID-19 pandemic. Design/methods applied/approach used A survey was conducted on a sample of 241 Polish firms from three industries, and to analyze the data, the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method was used. Findings The present study shows that entrepreneurial and DOs have a positive impact on e-distribution and e-promotion adoption during the COVID-19 pandemic. Originality/value The major contribution of this study is a simultaneous examination of digital and EOs as factors determining the adoption of e-marketing.

How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China

The promotion of high-quality, environmentally sustainable practices in enterprises in the digital age has become an important topic in business and academic circles. In this study, by employing a perspective combining digital orientation (DO) and sustainability commitment orientation (SCO), the concept of digital sustainability orientation (DSO) is presented, and digital green capability (DGC) is introduced as the mediating variable. Moreover, the driving mechanism model of corporate environmental sustainability practice (ESP) is constructed, and the moderating role of environmental scanning (ES) is taken into consideration. Using two sets of research data from 353 manufacturing enterprises in China, the empirical test results show that DSO has a significant role in improving ESP, and DGC is important in mediating between DSO and ESP. ES acts as a moderating variable between DSO and DGC and further moderates the mediating role of DGC between DSO and EPS; that is, the stronger the ES, the more significant the mediating effect of DGC. The conclusion of this study broadens the application scope of strategic orientation theory in the study of digital sustainability and has theoretical and practical implications for exploring the development of DGC and the dynamic mechanism of ESP.

The role of digital orientation and strategic emphasis in creating brand competitiveness

Although Brand Competitiveness (BC) has emerged as a key driver of brand performance, literature offers limited insights on how firms can improve and sustain BC. To uncover important antecedents of BC, we build on the resource-based theory and argue that Digital Orientation (DO), a key strategic orientation of modern businesses in an increasingly digital landscape, enhances BC and that a strategic emphasis on value creation strengthens the relationship between DO and BC. Using a novel database compiled from multiple sources and employing techniques like natural language processing, we find support for both of our predictions.

Nexus of knowledge oriented leadership and knowledge worker performance in Chinese higher education institutions: a post-pandemic behavioral analysis

PurposeIn the wake of the COVID-19 outbreak understanding the behavioral dynamics and role of knowledge-oriented leadership (KOL) in driving knowledge worker performance (KWP) is paramount for organizations striving to adapt and thrive in the post-pandemic era. Drawing on the path-goal theory, this study explores the impact of KOL on KWP. In addition, this study seeks to examine both the direct and indirect influences of KOL on KWP via digital orientation (DO) and digital citizenship practices (DCP), especially for higher education institutions (HEIs) located in China.Design/methodology/approachThe sample consisted of 319 academic staff from HEIs in China. The study used Smart-PLS 4.0 for analytical examination.FindingsThe results indicate that the impact of knowledge-oriented leadership on KWP is negligible. Furthermore, DCP and DO partially mediate the relationship between KOL and KWP. The findings of this research have practical implications for Chinese HEIs and organizations across industries, providing insights into how to navigate the complexities of the post-pandemic work environment and effectively harness digitalization to optimize the KWP.Research limitations/implicationsThe implications of this research extend beyond the HEIs, providing organizations in various industries with evidence-based strategies to promote effective leadership, foster digital skills, and cultivate a culture of digital citizenship in the post-pandemic work landscape.Originality/valueDespite the increasing significance of KOL in the higher education sector, there is a dearth of studies establishing a relationship between KOL and KWP in HEIs. The present study seeks to fill this gap by examining the association among KOL, KWP, DO, and DCP in HEIs during the post-pandemic. This research provides significant contributions to the existing literature on the topic by scientifically exploring the association between KOL and KWP by examining the intervention mechanism of both digital citizenship practices and digital orientation.

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

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 role of digital techniques in organisational resilience and performance of logistics firms in response to disruptive events: Flooding as an example

Climate change has resulted in the increased frequency and intensity of extreme weather events. One example is flooding, which has driven logistics firms to reconsider their resilience. Although logistics firms can employ digital techniques (DTs) to improve organisational resilience (OR), the interplay of DTs and OR in disruptive events is under-researched. In OR research, few studies have considered the roles of two critical components of DTs, namely digital orientation (DO) and digital competency (DC). This study uses multiple research methods to examine the role of DTs, including DO and DC, in logistics firms' OR during floods. In Phase 1, managers in logistics firms shared their views on the role of DTs for OR during floods through semi-structured interviews, which revealed that DO and DC might affect OR and firm performance through thematic analysis. This study further develops a conceptual framework and the associated hypotheses by combining the findings of Phase 1 with those reported in the literature. In Phase 2, survey data was collected via a self-administrated questionnaire survey, and structural equation modelling was then conducted to test the conceptual model. The results show that DC can positively affect OR and firm performance. DO can directly and positively affect firm performance and indirectly affect OR through the mediation role of DC. This study promotes the development of OR research and bridges the theory-practice gap by clarifying how DTs strengthen OR towards disruptive events.

IT-related resources, digital marketing capabilities and business performance: moderating effects of digital orientation and technological turbulence

PurposeThis research intends to develop a conceptual framework investigating how IT-related resources, namely IT advancement (ITAD) and IT alignment (ITAG), utilization relates to digital marketing capabilities (DMCs) development, which in turn improves business performance (BP), as well as how digital orientation (DO) and technological turbulence (TT) moderate these effects.Design/methodology/approachThis study employs an online email-based survey technique to collect primary cross-sectional data from 388 small and medium-sized enterprises operating in India. Moderated hierarchical regression was used to validate the hypothesized relationships.FindingsITAD and ITAG are significant drivers of DMCs, and these capabilities positively influence BP. Moreover, DO strengthens the positive effect of ITAD and ITAG on DMCs, with ITAD having a higher impact than ITAG. Similarly, DMCs have a greater positive effect on BP in an environment with high TT.Originality/valueDespite increased interest in the information technology resources required for the development of DMCs, less attention has been paid to the relationship between ITAD and ITAG resources and DMCs. In addition, few researchers investigate the moderating influence of DO on the relationship between IT-related resources and DMCs, as well as TT on the association between DMCs and BP.

Digital Revolution and Digitization Process to Promote AIS as a Vector of Financial Performance

Nowadays, many businesses recognize the importance of digitization as a strategic advantage to maintain competitiveness. As a result, current research aims to investigate three significant factors that influence digital transformation: digital innovation (DI), digital orientation (DO), and the accounting information system (AIS). These factors are supposed to impact the financial success and performance of firms. The objective of this study is to examine the positive association between digital orientation and financial performance (FP) and to explore how the AIS mediates this relationship. Additionally, this paper investigates the moderating role of digital innovation in the relationship between digital orientation and financial performance. To collect data, a quantitative method was employed using a random sampling technique. Data were collected via a questionnaire survey from small and medium-sized enterprises (SMEs) in China, with a sample size of 550. Structural equation modeling (SEM) and a bootstrapping technique with 5000 iterations were used to test the study hypotheses. The findings of this study indicate a positive link between digital orientation and the financial performance of organizations. Furthermore, the results confirm that the AIS acts as a mediator between digital orientation and financial performance. The outcomes also demonstrate that digital innovation plays a moderating role in the relationship between DO and financial performance. This paper contributes to the existing literature on digital transformation by providing a deeper understanding of the aforementioned antecedents of the digital revolution (DO, AIS, and financial performance) and how they should be integrated within digitalization settings to achieve financial performance.

The role of digital technology and digital innovation towards firm performance in a digital economy

PurposeIn this study, the researchers explored the roles played by digital technologies and digital innovation (DI) in Pakistan's Information, Communication and Technology (ICT) companies' firm performance (FP).Design/methodology/approachThe researchers used a quantitative study to gather cross-sectional data from employees working in Pakistan's ICT companies. The authors based this study's findings on 396 valid samples.FindingsThe structural equation modeling (SEM) findings underline that digital capability (DC), digital orientation (DO) and digital transformation (DT) have positive and significant effects on DI and FP. Moreover, there is a positive and significant relationship between DI and FP. Finally, DI mediates DC's, DO's and DT's associations with FP.Practical implicationsBy committing to embracing new digital technologies and updating existing DCs to become innovation leaders and to improve FP, the findings will help sectors to take advantage of developing digital technologies and the trend toward digitalization. The results are also valuable for policymakers when considering if SMEs should be provided with more money for the digital up-skilling of their employees. Finally, this study's findings enrich the depth of literature about companies' use of digital technologies.Originality/valueThis study's empirical findings confirm the roles played by DC, DO and DT in improving DI and FP in a developing country such as Pakistan.

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

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.

The role of digital orientation in moderating the relationship between innovation and internationalization

PurposeThis research aims to examine the moderating role of digital orientation (DO) on the relationship between innovation and internationalization by framing the relationship under an agency, resource-based view (RBV) and organization orientation (OO) theory.Design/methodology/approachThis study focuses on a sample of 392 listed companies in Malaysia from 2011 to 2018 and estimates the model under the double clustered regression, dynamic GMM panel model and one-lagged model to tackle endogeneity and reversal causality. This study also did a logit model as an additional robustness check.FindingsThe findings support the RBV perspective: Companies with intensive innovation have high internationalization. However, the findings refute OO theory by revealing the evidence that DO leads to low internationalization. Supplemental analysis suggests that innovation impact on internationalization occurs in assets and sales internationalization (exports).Research limitations/implicationsAccording to the RBV theory, innovation is strategic value creation for the organization to achieve competitiveness. A company can expand its market internationally when the business process is more productive and efficient due to innovation. The innovation process is closely related to DO. Hence, this research explores whether DO may strengthen the effect of innovation on the internationalization process.Originality/valueThis study examines the effect of DO on innovation and internationalization implementation by contesting agency theory, RBV theory and OO theory within an emerging country context.

Environmental collaboration with suppliers and cost performance: exploring the contingency role of digital orientation from a circular economy perspective

PurposeTo examine the interplay between sustainable supply chain management (SSCM) and circular economy, this research conceptualises and empirically tests an integrative framework of environmental information exchange with suppliers (ES), environmental product design (EPD) and cost performance (CP) with the contingency effect of digital orientation (DO). The associations proposed in the integrative framework provide a configuration of SSCM practices that support circular economy's restorative processes in the digital age.Design/methodology/approachThe resource orchestration theory and contingency theory are used to investigate the mediation and moderating effects, which were tested by a moderated mediation analysis of survey data of 100 firms in Australia.FindingsThe results show that EPD fully mediates the relationship between ES and CP. Further, DO was found to moderate the relationship between EPD and CP, but not the relationship between ES and EPD.Practical implicationsThe empirical findings of this study offer an effective SSCM practice configuration for firms seeking to target advanced circular business models and economic benefits. Managers should be aware that ES may not be enough to improve CP; EPD is a required mechanism to translate the ES benefits into cost superiority. Managers should also stimulate a DO culture to develop effective EPD capabilities, which leads to improved CP and a foundation for companies seeking to target circularity.Originality/valueThis study advances prior theoretical and practical knowledge. The authors propose and empirically test an integrated SSCM and circular economy model that incorporates mediation and moderation effects to clarify inconsistent findings in prior work, which provides a more holistic and practical understanding of SSCM practices in the digital context. Furthermore, the SSCM literature recommends the adoption of circular economy principles. The integrated model in this study provides a bridge between SSCM and circular economy.

Paradoxical Tensions in a Digital Era: The Impact of Digital Orientation on Innovation Ambidexterity

Disruptive changes in organizations driven by the pervasive impact of digital technologies call for novel theorizing and empirical investigations on innovation management in a digital era. To thrive in an increasingly digital world, companies need to follow a dual imperative: constantly reinventing themselves while at the same time refining current viability. Following a recent literature shift from treating digital technologies as enablers of organizational efficiency to triggers of organizational change, we study how a firm’s digital orientation (DO), a strategic posture aimed at realizing vital gains from digital technologies, fosters a simultaneous pursuit of exploitative and explorative innovation behaviors, i.e., innovation ambidexterity. We further introduce a firm’s absorptive capacity (ACAP) and market turbulence as moderating influences into this relationship. In deriving our hypotheses, we extend the resource-based view (RBV) with a dynamic capabilities lens, and enrich our theoretical arguments with novel perspectives on technology affordances, openness and generativity. Our research model is empirically tested through multi-industry survey data from 1,474 German companies.

How do dynamic capabilities enable hotels to be agile and resilient? A mediation and moderation analysis

PurposeThis paper aims to empirically assess the impact of Dynamic Capabilities (DC) on the agility and resilience of hotel Supply Chains (SCs) during the COVID-19 pandemic. Design/methodology/approachWe adopted a covariance-based structural equation modeling (CB-SEM) approach. Survey data from 268 respondents of various hotels in the United Arab Emirates (UAE) was collected by operationalizing the theoretical constructs using established scales. FindingsResults showed complete mediation of SC agility for the relationship between seizing, transformation, and resilience. We did not find any support for the mediation of SC agility for the relationship between sensing and resilience. Besides, the moderation of Digital Orientation (DO) for the relationship between SC agility and resilience is also an interesting fining. Research limitations/implicationsThe primary limitation of our study is that it utilizes cross-sectional data from a single geographic location, and the data was collected at the peak of the pandemic. Practical implicationsThe empirical support for the generic DCs process's relationship with the adaptive response of hotels during the Covid-19 pandemic underscores the importance of developing organization-wide sensing, seizing, and transformation capabilities Originality/valueThe proposed model responds to the recent literature that suggests that a direct measurement of sensing, seizing, and transforming would give a complete picture of how generic DC processes shape the organizational responses to market uncertainties. Also, our conceptualization that SC agility is a necessary intervening step between the DCs sensing seizing and transforming processes and firm resilience is a novel contribution to the literature.

Miswriting (Especially Mirror Writing) of the Digits: An Ecological Assessment Using ELFE Data

The French National Cohort of Children Study (Etude Longitudinale Française depuis l'Enfance—ELFE) tested the literacy and numeracy skills of 4- to 5-year-old typically developing children in the second year of école maternelle. Tasks were administered by more than 4,000 teachers at schools across France. One of the study's numeracy tasks required participants to write the number of ducks (up to 5) they had counted. Analyzing the digits written by 14,904 children showed that miswritings were much more common for the digit 3 than for the digit 4. This result is consistent with the right-orienting rule, which young children in Western cultures apply when they do not know a digit's orientation, and which leads them to write, for example, ε instead of 3.The nature and frequency of miswritten digits did not differ significantly between the 466 children presumed to have written with their left hand and the 3,531 children presumed to have written with their right hand. However, a logistic mixed-effects regression showed that two other factors—age of entry to école maternelle and very early smartphone use—had a (modest) influence on the percentage of digits that were miswritten.