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The Nexus of Corporate Affinity for Technology and Firm Sustainable Performance in the Era of Digitalization: A Mediated Model

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  • Dharm Dev Bhatta

    (School of Foreign Language and International Business, Guilin University of Aerospace Technology, Guilin 541004, China)

  • Muddassar Sarfraz

    (School of Management, Zhejiang Shuren University, Hangzhou 310015, China)

  • Larisa Ivascu

    (Faculty of Management in Production and Transportation, Politehnica University of Timisoara, 300191 Timisoara, Romania)

  • Marius Pislaru

    (Faculty of Industrial Design and Business Management, “Gheorghe Asachi” Technical University of Iasi, 700050 Iasi, Romania)

Abstract

This study aims to elaborate on the embeddedness of digital technology applications and their effect on firms’ sustainable performances under the mediating conditions of team innovation performance and digital organizational culture. The study employs a quantitative approach, and data were collected from 319 employees working in the information technology sector of China. Analyses of moment structures ((AMOS-version 27.0) and SPSS software- version 4.0) were used for data analysis, and the structural equation modeling (SEM) technique was utilized for hypothesis testing. The results show that a corporate affinity for technology has a positive and significant impact on sustainable performance, organizational digital culture, and team innovation performance. Organizational digital culture mediates the relationship between the corporate affinity for technology and sustainable performance. Team innovation performance mediates the relationship between the corporate affinity for technology and sustainable performance. The study contributes to business sustainability in terms of digitalization. Scholars and professionals can use the study as a guide for developing a business model that ensures the sustainable performance of firms. The research seeks to fill the existing gap in the literature concerning sustainable company performance by examining the potential for digitalization to enhance organizational sustainability. Firms need to prioritize investments in technology, they need to build a “tech-savvy” workforce, and they need to promote digital culture across the organization. A mixed-methods study would provide a more comprehensive understanding of this matter. For business leaders, this research provides important insights into how digital tools may be used to foster a productive work environment and ensure long-term success. The study profoundly elaborates on different interdependencies that influence the firms’ sustainable performances, and it suggests that managers should devise policies to enable technology acceptance.

Suggested Citation

  • Dharm Dev Bhatta & Muddassar Sarfraz & Larisa Ivascu & Marius Pislaru, 2023. "The Nexus of Corporate Affinity for Technology and Firm Sustainable Performance in the Era of Digitalization: A Mediated Model," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9765-:d:1174345
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