Digitalization and network capability as enablers of business model innovation and sustainability performance: The moderating effect of environmental dynamism
Authors: Li, Ying; Cui, Li; Wu, Lin; Lowry, Paul Benjamin; Kumar, Ajay; Tan, Kim Hua
Journal: Journal of Information Technology (2024)
DOI: 10.1177/02683962231219513
<jats:p> In the face of relentless global competition and regulatory pressures, the imperative for firms to digitally transform has become critical. This is particularly salient for Chinese manufacturing firms as they strive for sustainability, a multidimensional construct comprising both economic and environmental performance. Leveraging dynamic capabilities theory, this study aims to unravel the intricate interplay between digitalization, network capability, business model innovation (BMI), and environmental dynamism in shaping a firm’s sustainability performance. Our research is driven by a compelling question: How do digitalization and network capabilities impact firms’ sustainability performance, and what roles do BMI and environmental dynamism play in this relationship? To answer this question, we employed a robust survey-based methodology encompassing 1600 Chinese manufacturing firms, yielding 255 completed and validated responses. The findings reveal that network capability mediates the influence of digitalization on two types of BMI—novelty-centered and efficiency-centered. Further, these forms of BMI act as mediators between digitalization and network capability, and the…