IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i4d10.1007_s13132-022-01083-x.html
   My bibliography  Save this article

Digital Transformation and Firm Sustainable Growth: The Moderating Effects of Cross-border Search Capability and Managerial Digital Concern

Author

Listed:
  • Qi Yao

    (Chongqing Jiaotong University)

  • Hongjuan Tang

    (Chongqing Jiaotong University)

  • Francis Boadu

    (Kumasi Technical University)

  • Yu Xie

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

Abstract

Digital transformation is critical to enhancing the firms’ sustainable growth, but this association is rarely explored, especially in the emerging market literature. Building upon the dynamic capabilities perspective, we address how digital transformation affects firms’ sustainable growth. Particularly, we examine the moderating effects of cross-border search capability and managerial digital concerns on the digital transformation and firms’ sustainable growth link. Using a survey dataset by 289 firms from Chinese manufacturing and service industries, we perform a hierarchical linear model (HLM) analysis to test our hypotheses. Our results reveal that (1) digital transformation positively enhance firms’ sustainable growth; (2) cross-border search capability moderates the effects of digital transformation on firms’ sustainable growth; and (3) managerial digital concerns moderate the effects of digital transformation on firms’ sustainable growth. Our findings illustrate how cross-border search and managerial digital concern matters in firms’ sustainable growth. It further extends the scope of digital transformation research.

Suggested Citation

  • Qi Yao & Hongjuan Tang & Francis Boadu & Yu Xie, 2023. "Digital Transformation and Firm Sustainable Growth: The Moderating Effects of Cross-border Search Capability and Managerial Digital Concern," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4929-4953, December.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:4:d:10.1007_s13132-022-01083-x
    DOI: 10.1007/s13132-022-01083-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-01083-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-022-01083-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jun Chen & Wang Dong & Jamie Tong & Feida Zhang, 2018. "Corporate Philanthropy and Tunneling: Evidence from China," Journal of Business Ethics, Springer, vol. 150(1), pages 135-157, June.
    2. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    3. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    4. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    5. Marco Tortoriello, 2015. "The social underpinnings of absorptive capacity: The moderating effects of structural holes on innovation generation based on external knowledge," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 586-597, April.
    6. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    7. Elias Carayannis & Evangelos Grigoroudis & Stavros Sindakis & Christian Walter, 2014. "Business Model Innovation as Antecedent of Sustainable Enterprise Excellence and Resilience," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 440-463, September.
    8. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    9. Michael A. Hitt & David Ahlstrom & M. Tina Dacin & Edward Levitas & Lilia Svobodina, 2004. "The Institutional Effects on Strategic Alliance Partner Selection in Transition Economies: China vs. Russia," Organization Science, INFORMS, vol. 15(2), pages 173-185, April.
    10. Peter J Jordan & Ashlea C Troth, 2020. "Common method bias in applied settings: The dilemma of researching in organizations," Australian Journal of Management, Australian School of Business, vol. 45(1), pages 3-14, February.
    11. Zhang, Haisu & Wu, Fang & Cui, Anna Shaojie, 2015. "Balancing market exploration and market exploitation in product innovation: A contingency perspective," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 297-308.
    12. Neil F Doherty & Malcolm King, 2005. "From technical to socio-technical change: tackling the human and organizational aspects of systems development projects," European Journal of Information Systems, Taylor & Francis Journals, vol. 14(1), pages 1-5, March.
    13. Ren Ze & Zhan Kun & Francis Boadu & Liu Yu, 2018. "The Effects of Boundary-Spanning Search, Network Ties, and Absorptive Capacity for Innovation: A Moderated Mediation Examination," Sustainability, MDPI, vol. 10(11), pages 1-18, October.
    14. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    15. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    16. Steven W. Bayighomog Likoum & Mohamed Dawood Shamout & Ibrahim Harazneh & A. Mohammed Abubakar, 2020. "Market-Sensing Capability, Innovativeness, Brand Management Systems, Market Dynamism, Competitive Intensity, and Performance: an Integrative Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 593-613, June.
    17. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    18. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    19. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    20. Elias G. Carayannis & David F. J. Campbell, 2021. "Democracy of Climate and Climate for Democracy: the Evolution of Quadruple and Quintuple Helix Innovation Systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 2050-2082, December.
    21. Elias G. Carayannis & Joanna Morawska-Jancelewicz, 2022. "The Futures of Europe: Society 5.0 and Industry 5.0 as Driving Forces of Future Universities," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 3445-3471, December.
    22. Benlian, Alexander & Haffke, Ingmar, 2016. "Does mutuality matter? Examining the bilateral nature and effects of CEO-CIO mutual understanding," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 77127, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    23. Marco Savastano & Carlo Amendola & Francesco Bellini & Fabrizio D’Ascenzo, 2019. "Contextual Impacts on Industrial Processes Brought by the Digital Transformation of Manufacturing: A Systematic Review," Sustainability, MDPI, vol. 11(3), pages 1-38, February.
    24. Min Xue & Francis Boadu & Yu Xie, 2019. "The Penetration of Green Innovation on Firm Performance: Effects of Absorptive Capacity and Managerial Environmental Concern," Sustainability, MDPI, vol. 11(9), pages 1-24, April.
    25. Francis Boadu & Yu Xie & Yi-Fei Du & Elizabeth Dwomo-Fokuo, 2018. "MNEs Subsidiary Training and Development and Firm Innovative Performance: The Moderating Effects of Tacit and Explicit Knowledge Received from Headquarters," Sustainability, MDPI, vol. 10(11), pages 1-25, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jason Li-Ying & Yuandi Wang & Lutao Ning, 2016. "How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1009-1036, December.
    2. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Baoshan Ge & Liyi Zhao, 2022. "The impact of the integration of opportunity and resources of new ventures on entrepreneurial performance: The moderating role of BDAC‐AI," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 440-461, May.
    4. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    5. Che-Chuan Hsu & Rua-Huan Tsaih & David C. Yen, 2018. "The Evolving Role of IT Departments in Digital Transformation," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    6. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    7. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    8. Xinwei Ye & Lei Ma & Junwen Feng & Yang Cheng & Zheng Liu, 2018. "Impact of Technology Habitual Domain on Ambidextrous Innovation: Case Study of a Chinese High-Tech Enterprise," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    9. Wittenstein, Daniel, 2020. "Champions of digital transformation? The dynamic capabilities of hidden champions," ZEW Discussion Papers 20-065, ZEW - Leibniz Centre for European Economic Research.
    10. Ates, Aylin & Acur, Nuran, 2022. "Making obsolescence obsolete: Execution of digital transformation in a high-tech manufacturing SME," Journal of Business Research, Elsevier, vol. 152(C), pages 336-348.
    11. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    12. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    13. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    14. C. Lakshman & Sangeetha Lakshman & Kubilay Gok, 2023. "Managers’ knowledge and customer-focused knowledge management as dynamic capabilities: implications for innovation performance," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 246-274, February.
    15. Jolien Roelandt & Petra Andries & Mirjam Knockaert, 2022. "The contribution of board experience to opportunity development in high-tech ventures," Small Business Economics, Springer, vol. 58(3), pages 1627-1645, March.
    16. Rogier van de Wetering & Sherah Kurnia & Svyatoslav Kotusev, 2020. "The Effect of Enterprise Architecture Deployment Practices on Organizational Benefits: A Dynamic Capability Perspective," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    17. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    18. Carl Åberg & Mariateresa Torchia, 2020. "Do boards of directors foster strategic change? A dynamic managerial capabilities perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 655-684, September.
    19. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    20. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:14:y:2023:i:4:d:10.1007_s13132-022-01083-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.