the mechanism of digital transformation impact on innovation performance

Introduction

Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how companies operate and deliver value to customers. This transformation has significant implications for innovation performance, which is crucial for the long-term success and competitiveness of enterprises. This synthesis explores the mechanisms through which digital transformation impacts innovation performance, drawing on insights from multiple research studies.

Key Insights

Enhancement of Innovation Performance through Digital Transformation:
- Digital transformation significantly enhances both process and product innovation performance in manufacturing enterprises .
- The integration of digital technologies such as big data, AI, and cloud computing promotes green innovation and sustainable development .
Role of R&D and Dynamic Capabilities:
- R&D capabilities, both exploratory and exploitative, mediate the relationship between digital transformation and innovation performance, with different mechanisms for each type.
- Dynamic capabilities, which include the ability to integrate, build, and reconfigure internal and external competencies, are crucial for leveraging digital transformation to improve innovation performance.
Sectoral and Technological Content Differences:
- The impact of digital transformation on innovation performance varies by sector, with more pronounced effects in high-tech and state-owned enterprises .
- Enterprises with higher technological content experience more significant benefits from digital transformation in terms of innovation performance.
Operational and Financial Performance:
- Digital transformation positively correlates with process-based operational performance and has a U-shaped relationship with profit-oriented financial performance, indicating initial costs but long-term benefits.
Green Innovation and ESG Performance:
- Digital transformation promotes green technology innovation by alleviating financing constraints and attracting government subsidies .
- It also improves environmental, social, and governance (ESG) performance by enhancing transparency, reducing managerial short-sightedness, and fostering technological innovation.
Moderating Factors:
- Environmental uncertainty moderates the relationship between digital transformation and sustainable innovation performance, with lower uncertainty strengthening the positive effects.

Conclusion

Digital transformation significantly enhances innovation performance across various dimensions, including process, product, and green innovation. This enhancement is mediated by R&D capabilities and dynamic capabilities, with sectoral and technological content differences influencing the extent of the impact. While digital transformation incurs initial costs, it offers long-term operational and financial benefits. Additionally, it promotes green innovation and improves ESG performance, particularly in high-tech and state-owned enterprises. Environmental factors also play a role in moderating these effects, highlighting the importance of a supportive external environment for maximizing the benefits of digital transformation.

The mechanism of digital transformation impact on innovation performance

Summary

Introduction

Key Insights

Conclusion

Sources and full results

Digital Transformation and Manufacturing Firm Performance: Evidence from China

Digital transformation significantly improves manufacturing firm performance in China, with low-cost empowerment and innovation empowerment being key channels to enhance performance.

Can Digital Transformation Promote Innovation Performance in Manufacturing Enterprises? The Mediating Role of R&D Capability

Digital transformation directly promotes process and product innovation performance in manufacturing enterprises, with exploratory and exploitative R&D capabilities playing the same mediating role.

Digital transformation as a springboard for product, process and business model innovation

Digital transformation leads to product, process, and business model innovations, benefiting companies of all sizes and industries across diverse industries.

Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism

Digital transformation significantly promotes enterprise green innovation through R&D investment, government subsidies, and income tax burden, with a greater impact on high-tech and state-owned enterprises.

Enterprise Digital Transformation, Dynamic Capabilities and Innovation Performance

Enterprise digital transformation significantly improves innovation performance by enhancing dynamic capability decision-making behavior.

Can Digital Transformation Promote Green Technology Innovation?

Digital transformation significantly promotes green technology innovation by alleviating financing constraints and attracting government subsidies, with greater impact on state-owned and large-scale enterprises.

Resource Bundling: How Does Enterprise Digital Transformation Affect Enterprise ESG Development?

Enterprise digital transformation significantly improves environmental, social, and governance (ESG) performance, driven by restraining short-sightedness, increasing transparency, and enhancing technological innovation.

Is There Any Difference in the Impact of Digital Transformation on the Quantity and Efficiency of Enterprise Technological Innovation? Taking China’s Agricultural Listed Companies as an Example

Digital transformation promotes the number of technological innovations in Chinese agricultural enterprises, but does not affect innovation efficiency, with a significant single threshold effect when period expense rate is less than a threshold.

The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector

Digital transformation positively impacts process-based operating performance in China's manufacturing sector, with a more lasting impact on operating performance than financial performance.

How does digital transformation affect sustainable innovation performance? The pivotal roles of digital technology‐business alignment and environmental uncertainty

Digital transformation positively impacts sustainable innovation performance through digital technology-business alignment, with stronger effects when environmental uncertainty is lower.

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