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Although information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC) with moderators has received less attention. This study investigates how the impact of IT governance mechanisms on firm performance is achieved through an ITDC through the moderating role of IT governance decentralization and a turbulent environment.

This study extends from the traditional view of IT capabilities and integrates dynamic capability theory to propose that IT governance is vital for the ITDC. Path analysis, hierarchical regression analysis and moderation analysis were performed using partial least squares (Smart PLS 3.0) as the data analysis methods. This study empirically tests the proposed mediated moderation model by using data collected from 254 firms in China to test the hypotheses.

Significant and impactful relationships are found in the model that includes turbulent environment moderating effects. Contrary to expectations, IT governance decentralization is also significant but not very strong.

This study’s findings have implications for investigating IT governance, IT-enabled capabilities and moderators. Accordingly, this study has implications for board and executive management to capitalize on dynamic IT capability, to keep pace with the challenges and turbulent conditions associated with business needs and for the productivity paradox in the context of Chinese firms.

This country-specific research study theoretically contributes to the IT governance, dynamic capabilities and turbulent environment in the information systems literature and proposes many practical guides to the board and executive management of companies in the Chinese context.

Data transformation has prompted enterprises to rethink their strategic development. Scholars have frequently acknowledged the vast potential value of supply chain data and realised that simply owning data resources cannot guarantee excellent innovation performance (IP). Therefore, this study focussed on the mediating and moderating issues between data-driven supply chain orientation (DDSCO) and IP. More specifically, the purpose was to explore (1) whether DDSCO promotes enterprise innovation through dynamic and improvisational capabilities and (2) how information complexity (INC) plays a moderating role between capabilities and performance.

An empirical study was performed using the results of a questionnaire survey, and a literature review was used to build the premises of this study. A sample was conducted on 296 Chinese enterprises, and the data collected were used to test the hypothesis by successive regression.

This research has implications for the theoretical development of DDSCO, as well as the dynamic capabilities (DC) and improvisation capabilities (IC) in innovation strategic literature. The empirical results show that DDSCO has a direct, positive impact on both DC and IC, which thus positively impact IP. Meanwhile, IC has a negative moderating effect on the path joining DC and IP. Conversely, IC has a positive moderating effect on the path joining IC and IP.

Although this study has limitations, it also creates opportunities for future research. The survey comes from different industries, so the possibility of unique influences within industries cannot be ruled out. Second, the authors' survey is based on cross-sectional data, which allow for more comprehensive data verification in the future. Third, this study also provides opportunities for future research, because it proves that DC and IC, as partial mediators of DDSCO and IP, can mine other paths of the data-driven supply chain in IP. For example, the perspective of the relationship between supply chain members, knowledge perspective, etc.

The research findings offer a novel perspective for enterprise managers. First, enterprises can leverage supply chain data to gain competitive advantages in innovation. Second, it is imperative for enterprises to acknowledge the significance of developing dynamic and IC. This also requires enterprises to acknowledge innovations in DDSCO necessitate a focus on dynamic and IC. Third, it is recommended that managers take into account both sides of IC and encourage enterprises to prioritise the utilisation of IC.

Empirical research results revealed how DDSCO improves IP and is an extension of digital transformation in the supply chain field, providing new opportunities and challenges for enterprise innovation. It can also expand the enterprise's understanding of DDSCO. Second, based on resource-based theory, it is possible to develop and test theoretical arguments regarding the importance of dynamic and IC as intermediaries in the DDSCO-IP. Third, the authors conducted simulations of highly dynamic data environments to develop and test theoretical arguments about the importance of IC as a moderator of capabilities-performance relationships.

Scholars and practitioners acknowledge that digital leadership can help organizations gain a competitive advantage. This article focuses on the characteristics, styles and skills needed for effective digital leadership. It looks at the role of digital leaders in innovating business models and introducing organizational change required for a successful digital transformation.

This paper is based on a comprehensive literature review of digital transformation, digital leadership, business model innovation, and organizational culture. It draws on institutional theory (INT) the neo-institutional theory (NIT). It draws from Science Direct, Web of Science and Google Scholar publications. A proposition and a conceptual framework are developed based on evaluating and synthesizing the literature.

We find that specific leader characteristics (agility, participative, innovativeness and openness), styles (democratic and transformational) and skills (cognitive, social, technological and digital) enable successful business model innovation and organizational change, all of which allow successful digital transformation of firms.

The literature on digital transformation has not been well integrated with the leadership literature. This is particularly true in terms of the role digital leaders play in the successful digital transformation of firms. The conceptual framework and a way forward proposed in this paper introduce future research directions on the topic.

With the emergence of the digital era, the role of digital leaders in developing digital capabilities and driving their firms towards digital transformation has gained significant attention. Digital dynamic capabilities involve continuous engagement of leaders in sensing, seizing, and transforming activities needed to digitally transform their firms. However, little attention is given toward the role of digital leadership in developing digital dynamic capabilities. We seek to develop an understanding of the role of digital leadership in building digital dynamic capabilities for successful digital transformation.

We conducted a systematic literature review and looked at relevant articles using Google Scholar, ScienceDirect, and Scopus databases with key search items being “digital leadership”, “dynamic capabilities”, “digital dynamic capabilities,”. We used AND, OR operators in between the key terms to search for the relevant articles.

Our conceptual framework and propositions demonstrate the digital leader's role in building three core dynamic capabilities: digital sensing (technological trends, digital scouting, digital vision, future interpretation, and digital strategies), digital seizing (organizational agility and digital portfolio), and transforming (redesigning internal structures and ecosystem partnerships) for successful digital transformation.

This study pioneers an integrated framework that elucidates the role of digital leadership in fostering digital dynamic capabilities essential for successful digital transformation. While previous research has examined digital leadership and transformation in separate silos, our work bridges this gap by defining and dissecting three core capabilities—digital sensing, digital seizing, and transforming. By doing so, we offer both academic and practical communities a nuanced understanding of how digital leadership shapes dynamic capabilities. The study serves as a foundational roadmap for future research and offers actionable insights for organizations striving to navigate the complex landscape of digital transformation.

This study proposes the novel construct of digital transformation anxiety and investigates its effect, which is mediated by absorptive capacity and dynamic capability, on digital innovation performance.

This study conducted a questionnaire survey among Taiwanese manufacturing and service companies to verify the research framework. A total of 130 valid responses were collected and analyzed using partial least squares structural equation modeling (PLS-SEM) and bootstrapping to test direct and mediation effects, respectively.

Digital transformation anxiety negatively affects absorptive capacity and dynamic capability, whereas absorptive capacity and dynamic capability positively affect digital innovation performance. Dynamic capability more strongly mediates the association between digital transformation anxiety and digital innovation performance than absorptive capacity. Additionally, digital transformation anxiety does not negatively affect digital innovation performance. Finally, manufacturing companies had significantly higher levels of digital transformation anxiety than service companies.

This study proposes the novel construct of digital transformation anxiety to address a gap in the literature. Digital transformation anxiety leads companies to adopt unnecessarily conservative practices, preventing them from flexibly responding to technological advances. This insight highlights the negative effect of such anxiety on absorptive capacity and dynamic capability, extending the application of path dependency theory to companies. The findings underscore the value of enhancing dynamic capability and reallocating resources to foster digital innovation. The study identified and explored the concept of digital transformation anxiety and extended the perspective of dynamic capability to include digital transformation and digital innovation.

The current findings indicate that digital transformation anxiety does not substantially affect digital innovation performance in Taiwanese companies. Consequently, Taiwanese companies should focus on developing their absorptive capacity and dynamic capability to enhance digital innovation.

The study proposes the novel construct of digital transformation anxiety and explores its effect on business units. It presents a pioneering framework derived from path dependence theory and the perspective of dynamic capability.

This study aims to investigate the dynamic capabilities of Indonesia’s local government internal auditors (LGIAs). LGIAs are the functional civil apparatus that is responsible for the main task of auditing local governments at the provincial, regency and municipal levels. Meanwhile, the LGIAs are also a spearhead in identifying and analysing errors, irregularities and fraudulent actions in the finance and development of local government.

The exploratory case study methodology was used, gathering insights from 18 individuals through interviews. In addition, the authors use a critical perspective of the LGIAs’ behaviours in enhancing their capabilities in compliance with the regulations. Moreover, the authors discuss the low motivation of LGIAs in terms of achievement in knowledge acquisition, a mechanistic curriculum creating a climate of low spirit, mental models in rooted ordinariness and behavioural anxiety in hierarchical systems of expertise.

This paper infers that the LGIAs reflect inertia in terms of capabilities because its curriculum, environment and organisation have pervasively changed the culture of the work environment. Consequently, although immorally convenient and practical, the LGIAs work with professional discipline and expedient behaviours. In addition, the LGIAs behave performativity, presenting task performances with undynamic capabilities. Lastly, these behaviours imply the need to enhance the LGIAs’ dynamic capabilities by structuring local governments’ adaptive environment. Hence, this adaptive environment, in turn, could facilitate LGIAs’ further being in high spirits in enhancing knowledge-based expertise.

This study firstly implies that the research findings indicate the need for environmental-, organisational- and curriculum-made transformations to change the capabilities and competencies of LGIAs in the future, facilitating them to increase assimilation-learning abilities. Furthermore, the research shows that mental models dominate LGIAs, resulting in low spirits and reluctance to develop their dynamic capabilities. The paper recommends creating a work culture where anxiety is not dominant and changing the flexibility of the professional structure for LGIAs so that they can be promoted from functional to structural officers.

LGIAs work in a cultural environment that is always structured to fulfil what the regulations require. So, this study’s first novelty is that it underlines the ordinary job practices of LGIAs and the low incentives to enhance their dynamic capabilities. Secondly, it is highlighted that the institution’s auspices do not facilitate LGIAs to advance their dynamic capabilities because of the static competency-based development curriculum. Thirdly, the research shows that the LGIAs are a civil apparatus whose employment system in Indonesia implies a no-dismissal culture and halo effect in measuring performance.

Digital transformation provides a new impetus for the development of declining firms. However, there is currently a lack of sufficient research on whether digital transformation is beneficial for the turnaround of declining firms. This paper aims to explore the relationship between digital transformation and the turnaround of declining firms.

Drawing on the theoretical foundations of the resource-based view and dynamic capabilities theory, this research uses a comprehensive dataset of Chinese A-share listed companies from 2010–2021 to explore the influence of digital transformation on the turnaround of declining firms.

The research findings show that digital transformation contributes to the turnaround of declining firms. Mechanism analyses demonstrate that digital transformation enhances dynamic capabilities and attracts more analysts, thereby facilitating the turnaround process. Moreover, the moderation analysis reveals that CEO equity incentives strengthen the positive correlation between digital transformation and the turnaround of declining firms. Heterogeneity analysis indicates that the association between digital transformation and the turnaround of declining firms is particularly significant for firms with low financing constraints and high-tech firms. Moreover, this research reveals that digital transformation can facilitate the turnaround of firms in deep and long-term decline.

This research contributes to the literature on the digital transformation of enterprises and provides important insights for the turnaround of declining firms.

Within the context of an open innovation business environment, the frequent interaction and coordination activities among heterogeneous partners have a significant impact on enterprises' business model. Nevertheless, fewer empirical research has been made to explore how to match external partners and update organizational dynamic capabilities at an ecosystem level. Therefore, this paper attempts not only to investigate the direct impact of partner match on different business model innovation (BMI) themes (efficiency-centered BMI and novelty-centered BMI) but only to shed light on the pivotal mediating role of interfirm dynamic capabilities.

This paper utilized the methodology of Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the impact of diverse partner selection criteria and interfirm dynamic capabilities on two distinctive themes of BMI. More than 20 industry clusters with multiple industries were selected as representatives of the creative ecosystem, predominantly from the Yangtze River Delta region. Valid data were collected from 254 managers by both online questionnaires and offline interviews.

The findings of the study show that different partner match criteria have distinct direct impacts on BMI themes. Partner complementary and partner synergy, deriving from the “task-related criteria”, are significantly correlated with both EBMI and NBMI. Conversely, partner compatibility, deriving from “Partnering-related Criteria”, shows a positive correlation with EBMI but not NBMI. Furthermore, compare the indirect effect on EBMI, the paper’ results demonstrate interfirm dynamic capabilities as mediator can more maximize external benefits to promote NBMI.

The study findings effectively help enterprises implement different BMI themes. From a management perspective, whether pursuing EBMI or NBMI, enterprises should consciously seek partners who can provide complementary support or share mutual goals across diverse industries. This strategic approach can significantly enhance the opportunities for sustainable and innovative business development. Furthermore, to successfully accomplish NBMI, enterprises must cultivate interfirm dynamic capabilities encompassing a comprehensive range of cross-organizational innovation capacities, such as bolstering organizational learning capability, establishing interactive network platforms to enhance coordination capabilities and engaging in integrative activities to foster a collective mindset.

This paper contributes to the match theory by introducing three critical matching criteria, enabling enterprises to discern partners based on diverse organizational characteristics. Additionally, this paper broadens the scope of the dynamic capability literature by adopting a network perspective to strengthen interaction and relationship mechanisms. The authors primarily elucidate the concept of interfirm dynamic capabilities as a formative higher-order model formed by three sub-capabilities (absorptive capacity, coordination capability and collective mind). Finally, this paper combines matching theory with dynamic capacity theory to the field of BMI, which adds depth and complexity to the existing ecosystem innovation research.

Scholars increasingly focus on digital transformation as a key strategy for incumbent firms to gain competitive advantages. Meeting digital transformation commitments presents challenges, requiring the application and the reconfiguration of dynamic capabilities. To address this need, this research proposes a framework of dynamic capabilities and its microfoundations to assess the opportunities and challenges regarding digital transformation, involving three dimensions: Digital sensing, digital seizing, and digital reconfiguring.

This study employed a descriptive qualitative empirical approach, encompassing a sample of eight companies. Data triangulation was achieved through a combination of in-depth semi-structured interviews and secondary data.

The research provides evidence that data-driven culture fosters digital transformation and proposes the following new microfoundations: “Analytics for the customer experience journey” and “Digital analytics innovation management”, the internal barriers “Leadership without digital skills” and “Lack of strategic human resources management for digital transformation”, and the internal enablers “Defined strategy for digital transformation” and “Data-driven culture”. Finally, based on empirical results, it was possible to gather clues that link dynamic capabilities with digital maturity.

The application of the proposed framework in companies enables them to develop a roadmap for the digital transition oriented towards their business and management strategies.

This paper contributes to the literature on dynamic capabilities for digital transformation by proposing new theoretical constructs that unearth their microfoundations, barriers, and enablers.

This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how product market competition moderates this relationship.

This research tests the hypotheses using the fixed effects model based on panel data of publicly listed enterprises in China from 2007–2020.

The empirical results validate the positive association between trade disputes and corporate research and development (R&D) intensity as well as the U-shaped relationship between trade disputes and radical innovation. Additionally, the moderating effect of product market competition is verified: a concentrated market with less competition flattens the U-shaped curve of radical innovation induced by trade disputes; as the market becomes more concentrated and less competitive, the U-shaped relationship eventually turns into an inverted U.

First, this study contributes to the corporate innovation and trade dispute literature by expanding the environmental antecedents of technological innovation and the firm-level consequences of trade disputes. Second, this study enriches the theoretical framework of the environment–innovation link through an integrated perspective of contingency theory and dynamic capabilities view. Third, instead of the traditional linear mindset which had led to contradictory results, this study explores a curvilinear effect in the environment–innovation relationship.