Technology Organization Environment Research Articles

Fostering competitiveness of Indian MSMEs through IT and digitalization

ABSTRACT This study investigates how IT and digitalization can boost the growth and competitiveness in Indian Micro, Small, and Medium Enterprises (MSMEs) using the Technology-Organization-Environment (T-O-E) framework combined with performance metrics. It also identifies barriers to successful digital transformation, offering key insights for the sector’s advancement. A mixed-methods approach was used, collecting qualitative data from 14 respondents and quantitative data from 321 MSMEs. The stage model used in the study reveals that MSMEs have not yet fully embraced digital maturity, and their transformation remains in its early stages due to critical barriers – ranging from inadequate internet infrastructure to a shortage of skilled talent and technological awareness. The survey highlights that digital adoption in MSMEs is influenced not only by technological factors but also by organizational and environmental factors. These factors significantly impact digital adoption, leading to substantial improvements in both financial and non-financial performance metrics for Indian MSMEs.

Integrating circular economy while adopting digital twin for enhancing logistics efficiency: a hybrid Fuzzy Delphi-FUCOM based approach

ABSTRACT This study integrates both concepts of Circular Economy (CE) and Digital Twin (DT) and uses a hybrid approach to prioritise Digital-based Circular economy potentials for enhancing logistics efficiency. In total, 21 potential factors were identified through literature review and experts’(Eps) responses, categorised into the three main aspects (economic, social, and circular). The Fuzzy Delphi approach (FDA) was used to screen out four factors. Later, the weights of the significant factors were computed using the Fuzzy Full Consistency Method (F-FUCOM). The hybrid approach’s results were validated through sensitivity and comparative analysis. The study proposes a Digital Twin-based Circular Economy framework and technology, organisation, environment (TOE) based taxonomy, providing researchers and policymakers valuable insights for decision-making (DM) to enhance logistics efficiency. The proposed results highlight that critical potentials such as ‘Reverse logistics (P14)’, ‘Operational cost (P1)’, ‘Route optimization (P2)’, and ‘Environmental impact (P15)’ played a significant role in enhancing the efficacy of logistics operations. This study provides the integrated framework that helps the researchers understand and analyse the potentials of digital twin in circular economy and provides insights for industrial managers for its implementation in logistics operations.

Exploring adoption of humanoid robots in education: UTAUT-2 and TOE models for science teachers

Abstract This study examines the factors influencing science teachers’ intentions to adopt humanoid robots in educational settings. It employs the Unified Theory of Acceptance and Use of Technology 2 (UTAUT-2) and the Technology-Organization-Environment (TOE) framework as guiding theoretical models. By integrating UTAUT-2, which emphasizes individual factors, and TOE, which addresses organizational and environmental influences, the study constructs a comprehensive model that explores both personal and contextual drivers of adoption. Utilizing structural equation modeling on a sample of 1,150 pre-service and in-service science teachers, the study reveals that the integrated model demonstrates superior predictive power compared to each framework individually. Results highlight the moderating role of professional experience in the adoption process, with significant differences identified between pre-service and in-service teachers. The findings reveal significant differences between pre-service and in-service teachers, illustrating the moderating role of professional experience in the adoption process. This study provides a deeper understanding of how motivational, organizational, and environmental factors interact to influence adoption intentions. These insights provide practical guidance for developing targeted training programs, promoting institutional readiness through well-crafted policy initiatives, and implementing pilot projects to support schools in the effective integration of humanoid robots into educational curricula. These findings provide actionable insights for educational policymakers and practitioners aiming to enhance teaching quality and student engagement through innovative technologies.

Modeling the adoption enablers of blockchain technology–based supply chain financing: An integrative dual DOI–TOE analysis

ABSTRACT This study focuses on the adoption enablers of blockchain technology–based supply chain financing (BcTSCF) using an integrative dual diffusion of innovation theory and technology–organization–environment (DOI–TOE) analysis. As a quantitative correlational study, the purposive sampling technique is used to collect data from 522 manufacturing small and medium-sized enterprises in Ghana. Employing partial least squares–structural equation modeling, the results show relative advantage, compatibility, trialability, regulatory support, and market dynamics are positive and statistically significant enablers. Complexity and cost negatively impact BcTSCF. Observability, competitive pressures, and manager/owner support, while positively influencing BcTSCF, are not statistically significant. From an importance–performance analysis, cost, trialability, competitive pressure, observability, and manager/owner support are low-importance, high-performance attributes. Compatibility, complexity, and relative advantage are high-importance, high-performance attributes. Theoretically, the DOI–TOE framework is integrated to propose a model to explain BcTSCF enablers from the perspectives of developing countries, especially in sub-Saharan Africa. Practically, this will help the government and other manufacturing-sector stakeholders to make corresponding policy arrangements.

Exploring high-performance green innovation in China’s logistics companies: a TOE framework based on fsQCA

In recent years, the Chinese logistics industry has experienced rapid development. However, this expansion is accompanied by significant challenges, including high energy consumption and greenhouse gas emissions. Despite these issues, the key factors improving logistics firms’ green innovation remain insufficiently explored. This study fills this gap by utilizing the Technology-Organization-Environment (TOE) framework as a foundation, introducing a comprehensive analytical model to investigate the dynamics of green innovation in logistics companies. Moreover, after employing fuzzy-set Qualitative Comparative Analysis (fsQCA) with data from 83 logistics firms in China, the research examines the complex interplay between technological, organizational, and environmental factors and their strategic influence on green innovation performance. The study yields three pivotal findings: (1) High-level green innovation performance is not predicated on a single factor. (2) Logistics firms can attain superior green innovation performance through two driving paths: Core competencies and market pressure driven as well as technological innovation and government subsidies driven. (3) The analysis of low-level green innovation performance reveals that four distinct paths can culminate in this outcome, with the lack of digitalization, organizational slack, and market pressure being instrumental in this result. These insights highlight the principles of “multiple concurrency” and “different paths leading to the same goal,” significantly enhancing the current knowledge base on green innovation performance and deepening our understanding of the multifaceted drivers of high-performance green innovation in logistics companies. Moreover, the discoveries offer practical implications for firms and the government to improve green innovation performance within the logistics industry.

Trusting the trustless blockchain for its adoption in accounting: theorizing the mediating role of technology-organization-environment framework

Blockchain technology has a unique ability to automate accounting processes that are a part of regulatory requirements in all commercial enterprises. Moreover, it can hold verified accounting records and eliminate the need for a trusted third party. Despite blockchain's potential to transform the nature of traditional accountancy procedures, adoption by the accounting industry is somewhat limited. Knowledge in this domain is lacking, and research on the antecedents influencing the adoption of blockchain-based accounting systems is scarce. This study is rooted in the technology-organization-environment (TOE) framework, presenting a trust-centric adoption model based on diligent analysis of blockchain and technology adoption literature. The model proposes that TOE factors mediate trust's role in adopting blockchain for accounting applications. The model was validated based on qualitative semi-structured interviews of twelve industry leaders and was comprehensively tested using a quantitative survey-based methodology with accounting professionals knowledgeable about blockchain technology. The data collected was analyzed using PLS-SEM. The results demonstrate the role of trust and the mediating effect of the theorized TOE variables on adopting blockchain-based accounting solutions. The results' implications for research and practice are discussed.

Understanding Determinants of Management Simulation Games Adoption in Higher Educational Institutions Using an Integrated Technology Acceptance Model/Technology–Organisation–Environment Model: Educator Perspective

Background and Methods: A primary survey of a multi-national sample of higher institutional educators has been conducted to investigate the determinants of the adoption of management simulation games. The research model is developed based on the technology acceptance model (TAM) and technology–organisation–environment (TOE). Structural equation modelling has been used to test the research model. The paper focuses on the use of management simulation games among educators in higher educational institutions (HEIs). Its purpose is to determine the factors influencing educators’ use of these games from both individual and institutional perspectives. The TAM captures the individual perspective, while the TOE framework addresses the institutional perspective. The structural equation model confirmed most of the TAM hypotheses. Results: However, the model does not support the hypotheses regarding the relationship between perceived ease of use and attitude toward usage or between perceived ease of use and perceived usefulness. The technological factors within the TOE framework did not significantly impact perceived usefulness, only perceived ease of use. Conclusion: The combined TAM-TOE model has demonstrated valid representativeness. Previous research on the usage of management simulation games has primarily focused on students, neglecting the broader perspective of educators in HEIs in business and economics within both the TAM and TOE frameworks.

The Willingness of Doctors to Adopt Artificial Intelligence-Driven Clinical Decision Support Systems at Different Hospitals in China: Fuzzy Set Qualitative Comparative Analysis of Survey Data.

Artificial intelligence-driven clinical decision support systems (AI-CDSSs) are pivotal tools for doctors to improve diagnostic and treatment processes, as well as improve the efficiency and quality of health care services. However, not all doctors trust artificial intelligence (AI) technology, and many remain skeptical and unwilling to adopt these systems. This study aimed to explore in depth the factors influencing doctors' willingness to adopt AI-CDSSs and assess the causal relationships among these factors to gain a better understanding for promoting the clinical application and widespread implementation of these systems. Based on the unifiedtheoryof acceptance and use of technology (UTAUT) and the technology-organization-environment (TOE) framework, we have proposed and designed a framework for doctors' willingness to adopt AI-CDSSs. We conducted a nationwide questionnaire survey in China and performed fuzzy set qualitative comparative analysis to explore the willingness of doctors to adopt AI-CDSSs in different types of medical institutions and assess the factors influencing their willingness. The survey was administered to doctors working in tertiary hospitals and primary/secondary hospitals across China. We received 450 valid responses out of 578 questionnaires distributed, indicating a robust response rate of 77.9%. Our analysis of the influencing factors and adoption pathways revealed that doctors in tertiary hospitals exhibited 6 distinct pathways for AI-CDSS adoption, which were centered on technology-driven pathways, individual-driven pathways, and technology-individual dual-driven pathways. Doctors in primary/secondary hospitals demonstrated 3 adoption pathways, which were centered on technology-individual and organization-individual dual-driven pathways. There were commonalities in the factors influencing adoption across different medical institutions, such as the positive perception of AI technology's utility and individual readiness to try new technologies. There were also variations in the influence of facilitating conditions among doctors at different medical institutions, especially primary/secondary hospitals. From the perspective of the 6 pathways for doctors at tertiary hospitals and the 3 pathways for doctors at primary/secondary hospitals, performance expectancy and personal innovativeness were 2 indispensable and core conditions in the pathways to achieving favorable willingness to adopt AI-CDSSs.

Exploring the Adoption of E-Commerce among Small and Medium Enterprises in Saudi Arabia: A Technology-Organization-Environment Perspective

This study investigates the factors influencing e-commerce adoption among Saudi Arabian Small and Medium Enterprises (SMEs) using the Technology-Organization-Environment (TOE) framework. The research aims to identify key determinants that either facilitate or hinder e-commerce adoption in the Saudi context. A web-based survey was conducted among 480 Saudi Arabian SMEs (32% owners, 68% managers), employing multiple regression analysis to test eight hypotheses derived from the TOE framework. Variables were measured using established scales with Cronbach's alpha exceeding 0.80, examining eight independent variables across technological, organizational, and environmental contexts. Results revealed technology infrastructure as the strongest predictor (β = .576, p < .001), followed by IT human resources (β = .341, p < .001), business infrastructure (β = .156, p = .008), business partner pressure (β = .123, p = .039), and technical infrastructure (β = .075, p = .015). Notably, competitive pressure, government support, and firm size did not show significant influence on e-commerce adoption. The model explained 33.3% of the variance in e-commerce adoption. Study limitations include its cross-sectional design, sample size representing less than 10% of total Saudi SME population, and potential limited generalizability beyond the Saudi Arabian context. Future research should consider longitudinal studies and cross-country comparisons. The findings suggest organizations should prioritize investment in technology infrastructure and IT human resources, while policy makers need to reassess current support mechanisms for SME digital transformation. Technology providers should focus on integrated solutions addressing both technical and business infrastructure needs. These results can inform strategies to achieve Saudi Vision 2030 digital transformation goals. This study provides the first comprehensive analysis of e-commerce adoption factors among Saudi SMEs using the TOE framework, challenging traditional assumptions about technology adoption drivers and offering evidence-based insights for stakeholders involved in Saudi Arabia's digital transformation.

Generative artificial intelligence in FinTech: Applications, environmental, social, and governance considerations, and organizational performance: The moderating role of ethical dilemmas

Research background: Generative Artificial Intelligence (GenAI) is a disruptive technology with great promise for the FinTech industry. The current study focuses on the drivers of GenAI adoption and its consequences for both exploratory and exploitative innovation in FinTech companies. Purpose of the article: Based on a conceptual model that extends the Technology-Organization-Environment (TOE) framework, this study also explores the moderating effect of ethical dilemmas in the relationship between GenAI adoption and innovation, as well as the role of Environmental, Social, and Governance (ESG) factors in shaping the broader impact of GenAI on organizational practices. Methods: Data were collected and analyzed using Structural Equation Modeling (SEM) from participants in the Chinese FinTech industry. Findings & value added: Our empirical findings show that GenAI improves both kinds of innovations and, subsequently, leads to improved organizational performance. However, ethical dilemmas do not significantly affect either of these effects. Moreover, the study suggests that aligning GenAI adoption with ESG goals, such as promoting sustainable practices and ensuring ethical governance, can further enhance long-term performance and stakeholder trust. This study underlines the strategic role of GenAI adoption in driving innovation, advancing ESG objectives, and improving performance in the fast-evolving landscape of FinTech.

Navigating through uncertainties: coordinating digital transformation in international manufacturing networks

PurposeCoordination of digital transformation within globally dispersed factories belonging to international manufacturing networks (IMNs) is essential for competitiveness. This paper explores how digital transformation necessitates changes in the coordination of IMNs.Design/methodology/approachA case study is conducted with three Swedish manufacturing companies, thus adding to the limited empirical research covering the examined research field. Data analysis uses the technology-organization-environment (TOE) framework.FindingsThe results highlight 15 digital transformation attributes linked by intermediate themes to 13 changes in the coordination of IMNs and provide concrete industry examples. Four major themes emerged as significant in the coordination of IMNs: increased speed of technology development and rollout, amplified emphasis on a global mindset, increased need to adapt the organizational structures to enable collaboration and a higher degree of uncertainty.Originality/valueAlthough coordination of IMNs is acknowledged as directly related to competitive advantage, the ways digital transformation necessitates changes in the coordination of IMNs have been missing in contemporary research. This research decreases this omission.

Equifinal configurations of shaping ambidextrous environmental strategy and the subsequent performance outcome

PurposeThis study explores the antecedent configurations shaping ambidextrous environmental strategy (AES) and the subsequent performance outcomes. The lack of literature from the configurational perspective and inconsistent performance results suggest that this study has significant implications for practitioners, policymakers and the public. Therefore, this study aims to investigate how different antecedent conditions interact to shape AES and subsequent performance outcomes.Design/methodology/approachTo achieve the research aims, the current research utilize research techniques based on technology–organization–environment framework and configurational perspective. This study collects data from 317 Chinese manufacturing enterprises and tests the theoretical framework using fuzzy set qualitative comparative analysis and propensity score matching.FindingsPerceived institutional pressure, green supply chain integration and digital technology adoption form four paths that lead to the existence of AES. There are four sets of replaceable conditions between distinct paths. In addition, except for configuration P3, all other configurations promote environmental, operational and financial performance.Research limitations/implicationsOur results provide new insights for enterprises to shape AES and achieve multiple performances, and new ideas for promoting environmental policies and public environmental awareness.Originality/valueThis study adds literature on AES and confirms multiple drivers, revealing their interaction mechanisms and key antecedent conditions. In addition, this study promotes the performance practice of AES by examining different AES configurations that achieve triple performance and insignificant operational performance.

Critical factors affecting digital resilience in the Sri Lankan banking sector: a systematic review

Digitalizing the Sri Lankan banking sector has heightened its vulnerability to cyber threats and operational disruptions, making digital resilience critical for maintaining continuity. This systematic literature review (SLR) employs the Technology-Organization-Environment (TOE) framework to explore and categorize the factors affecting digital resilience in the Sri Lankan Banking Sector. A review of 45 studies from 2016 to 2024 highlights three major categories: technological factors (e.g., cybersecurity measures, IT infrastructure, and emerging technologies like AI and blockchain), organizational factors (e.g., leadership, employee training, and strategic planning), and environmental factors (e.g., regulatory compliance, customer trust, and vendor management). The findings suggest that a holistic and integrated approach is necessary for enhancing digital resilience, specifically balancing technological innovation, organizational agility, and compliance with regulatory requirements. Moreover, the review identifies significant gaps in the current literature regarding Sri Lanka-specific empirical studies, recommending future research into the application of emerging technologies such as AI and blockchain to enhance resilience in developing economies. Additionally, the study proposes strategies to improve digital resilience, including strengthening cybersecurity infrastructure, fostering leadership-driven digital initiatives, updating business continuity plans, and advocating for flexible regulatory frameworks that balance innovation with security. The study underscores the need for an integrated approach to digital resilience. It suggests that future research should focus on targeted interventions to enhance resilience within the Sri Lankan banking sector and broader financial domain.

Impact Factors of the Maturity of FSSC in the Digital Age: A Study Based on Structural Equation Modeling

Since the mid-1980s, many multinational companies (MNCs) have transformed their finance functions into financial shared service centers (FSSCs), in order to cut costs and optimize internal operations. When it came to the 21st century, breakthroughs in technology have witnessed the rapid growth of the digital economy, promoting the digital transformation of enterprises and the digital transformation of finance. The construction of a FSSC has laid a solid foundation for the digital transformation of finance and has gained popularity in large companies. However, the practices of FSSC in China are deeply associated with the development of IT. Some scholars see it as a kind of IT application in the finance function, as evidenced by the active involvement of IT companies in the establishment of FSSCs. In this paper, the authors launched a questionnaire to measure the maturity of the FSSC in Chinese companies. Data was analyzed by using structural equation modeling (SEM), aiming to study the factors that have impacts on the maturity of FSSC and the influencing path of the factors. Influencing factors were designed based on the TOE (Technology-Organization-Environment) theory, and the maturity model of FSSC was modified from the PwC (PricewaterhouseCoopers) maturity model of FSSC. And then a structural model was constructed. Various tests for SEM were used, and the study showed that the technological and organizational conditions of enterprises have promoted the construction and development of FSSCs, while the external environmental conditions indirectly influenced the maturity of FSSC through affecting the organizational and technological conditions. The paper also showed the influencing path of the factors.

Adopting artificial intelligence in Kenyan academic libraries: analyzing through the technology-organization-environment framework

PurposeThe main aim of the paper was to determine the effect of Technology–Organization–Environment (TOE) Framework on adoption of artificial intelligence (AI) in Kenyan academic libraries anchored on diffusion innovation and TOE theories.Design/methodology/approachThe target population comprised of 517 librarians, deputy librarian, and senior staff from 98 academic libraries from institutions of higher learning in Kenya. The study used stratified and random technique to sample 226 respondents.FindingsFindings showed that technology factors (relative advantages, compatibility, and complexity) and environmental factors (regulatory environment, competitive pressure, and vendor partnership) positively affect adoption of AI in Kenyan academic libraries. However, organizational factors (firm size, top management support, and organizational readiness) had insignificant effect on adoption of AI in Kenyan academic libraries.Research limitations/implicationsThe study underscores the necessity of proactive policy measures and managerial decisions to drive AI adoption in academic libraries. Policymakers must prioritize investments in training and resources to enhance staff readiness and create supportive regulatory environments. Library administrators play a pivotal role in demonstrating leadership support and effectively allocating resources to overcome implementation challenges. Tailoring adoption strategies to individual library needs and fostering collaboration between policymakers and administrators are critical for successful AI integration.Originality/valueOther studies that have been done on application of AI in academic libraries have taken broader approach but this study narrows its focus to highlighting the pivotal influence of technological factors on AI adoption in academic libraries, recognizing the benefits and obstacles inherent in integration.

Digital transformation adoption and its influence on performance: an empirical study of creative companies in Vietnam

The purpose of the study clarifies the digital transformation adoption and how it impacts on the performance of creative companies in Vietnam. This investigation applied the technology–organization–environment framework and the structural equation modeling approach. The data was collected from 674 survey participants who are middle and senior managers or owners of creative companies in Vietnam, mainly located in Hanoi and Ho Chi Minh City. The structural equation modeling analysis indicates a positive relationship between technological, organizational, and environmental factors, and digital transformation adoption; the digital transformation adoption positively affects a company performance. These findings substantially contribute to the knowledge of digital technologies, digital transformation, company performance, and creative industries in the context of technology, organization, and environment. This research also provides insights for policymakers, readers, scientific communities, and management levels of creative industries to understand more about the environment of Vietnam’s creative industries.

Blockchain Adoption for a Circular Economy in the Chinese Automotive Industry: Identification of Influencing Factors Using an Integrated TOE-TAM Model

Although the potential of the blockchain has been extensively recognized by scholars and practitioners across multiple fields, research on its adoption in the framework of the circular economy (CE) is still scarce. In this context, this study extends the technology acceptance model (TAM) by integrating the technology–organization–environment (TOE) framework to holistically understand how technological perception factors (perceived usefulness and perceived ease of use) interact with organizational and environmental factors in influencing the intention to adopt the blockchain in the CE within the context of the Chinese automotive supply chain. Based on survey data from 305 respondents from Chinese automotive companies, the proposed hybrid TOE-TAM conceptual model was validated. The results indicate that, except for the effects of the knowledge management capability on the perceived ease of use and regulatory support on blockchain adoption intention, all of the other hypotheses are deemed significant. Moreover, by conducting an in-depth analysis of the evolution of blockchain adoption intention in the CE, this study not only deepens the understanding of how the technology is disseminated but also provides valuable insights to theory and practice within the Chinese automotive value chain.

Determinants of Social Media Adoption by Millennial Farmers to Improve Business Performance: Perspectives from the Technology-Organization-Environment (TOE) Framework

To attract millennials to the agricultural sector, it is necessary to modernize agriculture using social media. Social media plays an important role as a marketing tool for farmers. The utilization of social media platforms can assist farmers in enhancing the effectiveness of their agricultural product marketing efforts, with the objective of increasing their income. This study aimed to determine the effect of social media adoption on the business performance of millennial farmers in Central Java using the technology-organization-environment (TOE) framework. The method used in this study was a quantitative descriptive approach with data collected from 120 millennial farmers located in 10 districts in Central Java. The data analysis method was carried out using SEM-PLS with the SmartPLS 3.0 application. The results of the analysis showed that business performance was influenced by social media adoption, and millennial farmers’ business turnover increased by 25% after using social media. Technological factors and organizational factors had a significant effect on social media adoption, while environmental factors were not significant. This study provided information on the factors that influence the business performance of millennial farmers in Central Java Province, which can help farmers in developing strategies to improve business performance and assist the government in developing programs to attract the millennial generation to the agricultural sector.

Navigating the Clouds: An Exploratory Research of Cloud Computing Adoption in Saudi Arabia's Small and Medium Enterprises

The adoption of cloud computing has become essential for SMEs, especially in the e-commerce industry, as it has the potential to improve the efficiency of operations. However, the existing literature indicates significant gaps, including a general lack of comprehensive research focused on cloud computing adoption for SMEs and very limited research on the Kingdom of Saudi Arabia (KSA) context. This study aimed to fill these gaps by evaluating the current status of cloud computing adoption by SMEs in KSA and identifying the challenges facing its implementation in the e-commerce sector. To achieve these objectives, the Technology-Organization-Environment (TOE) framework was employed, analyzing the technological, organizational, and environmental factors that affect cloud service adoption. This study incorporates insights from government agencies, service providers, and SMEs to provide a holistic view. Through a mixed-method approach, combining qualitative and quantitative data, this study offers a detailed understanding of the cloud computing landscape in KSA, providing valuable insights for stakeholders and policymakers.

Research on the Driving Paths and Evolution of Digital Innovation in Intelligent Connected Vehicle Enterprises—A Configurational Analysis Based on Dynamic fsQCA

Intelligent connected vehicles (ICVs) are increasingly emerging as a pivotal driving force for promoting sustainable development in global transportation due to their outstanding performance in mitigating carbon emissions, alleviating traffic congestion, and enhancing travel efficiency. Enhancing the digital innovation capability of ICV enterprises is an imperative path to explore high-quality industry development and effectively respond to the latest technological revolution and industrial transformation. Based on the panel data from 20 listed companies in the ICV industry in China from 2019 to 2022, this study utilizes a fixed-base index and fuzzy set qualitative comparative analysis (fsQCA) method within the framework of technology–organization–environment (TOE) theory to investigate the influencing factors, driving paths, and temporal trends of digital innovation in ICV enterprises in China. The results show the following: (1) No single factor can constitute a sufficient condition for achieving a high level of digital innovation. (2) The level of digital innovation of ICV enterprises in China showed a fluctuating growth trend during 2019–2022. Digital infrastructure and market competition are the two critical factors for digital innovation, while technology and organizational conditions have become bottlenecks. (3) There are five driving paths of digital innovation in ICV enterprises in China, including the Entrepreneurial Navigation + Technology Accumulation Driving Path, R&D Advantage + Environment Driving Path, Application Oriented + Environment Driving Path, Knowledge Absorption Driving Path, and Total Factor Driving Path. (4) From 2019 to 2022, the digital innovation of ICV enterprises in China underwent two stages of evolution, namely “Knowledge Absorption + Government Promotion” to “Technology Embedded + Market Driven”. (5) A substitutive relationship exists between digital resource acquisition capabilities and digital infrastructure, which promotes digital innovation through different paths leading to the same goal. The findings of this study have important theoretical and practical implications for ICV enterprises in making scientific and reasonable digital innovation decisions, thereby fostering the sustainable development of the automotive industry.