The impact of digitalisation vision and information technology on organisations' innovation
Document Type
Article
Publication Date
2-1-2022
Abstract
Purpose Based on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance. Design/methodology/approach Data for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives. Findings Results showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance. Originality/value Digital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.
Keywords
Digitalisation, Information technology, Process innovation capability, Innovation performance, IT integration, IT agility
Divisions
Faculty_of_Business_and_Accountancy
Funders
University Malaya Research Fund Assistance (BKP) (Grant No. BK071-2017)
Publication Title
European Journal Of Innovation Management
Volume
25
Issue
2
Publisher
Emerald Group Publishing Ltd
Publisher Location
HOWARD HOUSE, WAGON LANE, BINGLEY BD16 1WA, W YORKSHIRE, ENGLAND