Digital-related capabilities and financial performance: the mediating effect of performance measurement systems

How are companies going to business digitalization? An explanation based on the implementation of e-commerce with data of SMEs

The data presented in this article is based on a questionnaire survey regarding e-commerce and business digitalization of SMEs in Mexico answered by the CEOs of the companies. A valid sample of 4121 Mexican SMEs was collected covering many industries, such as primary sector, extractive industries, manufacturing industries, energy, water, recycling, construction, trade, services, and others. The data includes information about the implementation of e-commerce, business digitalization, operational efficiency, corporate performance, and other demographic indicators of the sampling firms. The link between e-commerce and corporate performance is still underexplored in SMEs, even more so between companies from Latin America, being Mexico a perfect example to explore how different SMEs adapt and thrive due to the rapid growth of their e-commerce and the diversity of their business sectors (Santos-Jaén et al., 2023 [2]). Data analysis was conducted using SPSS and Smart PLS. The data are useful as the data can be reproduced, reused and reanalyzed paying special attention to group-specific effects. This data article also opens up better research opportunities going forward through collaboration with other researchers.

How does digital transformation affect the ESG performance of Chinese manufacturing state-owned enterprises?-Based on the mediating mechanism of dynamic capabilities and the moderating mechanism of the institutional environment

Against the background of sustainable development policies, the ESG performance of Chinese manufacturing enterprises is still generally poor. As the leading enterprises in the manufacturing industry, state-owned enterprises should take the lead in responding to the national call for sustainable development and actively explore the path to improve their ESG performance. This study aims to explore whether and how state-owned manufacturing enterprises can improve their poor ESG performance through digital transformation in the digital economy. This study takes Shanghai and Shenzhen A-share state-owned listed manufacturing enterprises as the research sample and constructs an unbalanced panel. OLS regression analysis is used to empirically test the impact of digital transformation on the ESG performance of the sample firms. Further attempts are made to discuss the influence mechanism of digital transformation from the perspectives of dynamic capabilities and the institutional environment through stepwise and hierarchical regression methods, respectively. The study shows that, firstly, digital transformation is an important influencing factor in promoting the improvement of enterprises' ESG performance, and at the same time, there are significant structural differences in this influence. Second, under the dynamic capability perspective, digital transformation can improve corporate ESG performance through an absorptive feedback mechanism, matching response mechanism, and innovation efficiency enhancement mechanism. Third, from the perspective of the institutional environment, the informal system has a significant positive moderating effect on the relationship between digital transformation and ESG performance, i.e., the informal system and digital transformation have a synergistic governance effect on corporate ESG performance. The moderating effect of the formal institutional environment on digital transformation and ESG performance is not significant. The findings of the study clarify the controversy over the relationship between digital transformation and ESG performance of manufacturing state-owned enterprises and enrich the research on the influencing factors of corporate ESG performance. It also provides a theoretical foundation and empirical evidence for manufacturing SOEs to improve ESG performance and lead to sustainable development.

Enterprise digital transformation's impact on stock liquidity: A corporate governance perspective

The innovation in technology and economic growth, which are brought about by digital transformation in enterprises, will inevitably impact their performance in the capital market. Using a sample of Chinese A-share listed companies from 2012 to 2021, this study extensively examines the impact, mechanism, and economic consequences of enterprises digital transformation on stock liquidity. The research reveals that enterprises digital transformation can significantly improve stock liquidity. From the perspective of corporate governance, a further analysis indicates that the digital transformation of enterprises can improve stock liquidity by three mechanisms: easing financing constraints, improving the quality of internal control, and enhancing information disclosure. The results of the heterogeneity analysis indicate that the digital transformation of enterprises, combined with a high level of financial technology, developed financial markets, and policy guidance, has a significantly more significant effect on improving stock liquidity. The analysis of economic consequences reveals that the digital transformation of enterprises can lower the risk of a stock price crash and enhance the accuracy of analysts' forecasts, primarily by improving stock liquidity. This study offers empirical evidence from a micro-mechanism perspective that elucidates the spillover effect of enterprise digital transformation on the capital market. It provides insight into the impact of enterprise digital transformation on stock liquidity and offers theoretical guidance to promote the adoption of enterprise digital transformation across different countries and enhance stock liquidity in the capital market.

Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate

While dynamic capabilities have been described as crucial for achieving organizational performance in dynamic environments, there has been limited scholarly distinction between dynamic capabilities and employee dynamic capabilities (EDC), especially in the digital era. Consequently, a knowledge gap has emerged. To address this void, this paper aims to investigate the driving factors of EDC and their impact on employee digital performance (EDP). Simultaneously, incorporating the competitive climate (CC) as a moderating variable between employee dynamic capabilities and employee digital performance addresses theoretical gaps in specific regions in China, particularly in small and medium-sized enterprises (SMEs). This study utilizes survey data from SMEs in four Chinese provinces: Shanghai, Guizhou, Guangdong, and Anhui. It employs CB-SEM (AMOS) to analyze the new conceptual framework. Firstly, the research uncovers that the positive relationship between digital capabilities and employee digital performance necessitates employee dynamic capabilities as a mediator. Secondly, there exists a direct and indirect relationship between organizational learning and employee digital performance. Finally, this study discerns that the competitive climate moderates the relationship between employee dynamic capabilities and employee digital performance. This finding demonstrates remarkable alignment with the competitive culture in specific regions of China. The research results encourage SMEs to seize the opportunities presented by emerging digital technologies and industry digitization trends. They should commit to embracing new digital technologies, enhancing digital capability, strengthening organizational learning, fostering a positive competitive climate, and focusing on the development of employee dynamic capability to enhance their competitive edge. The findings of this research contribute not only to academic inquiry but also furnish pertinent decision-making references for relevant departments.

Digital orientation, digital maturity, and digital intensity: determinants of financial success in digital transformation settings

Purpose

This study aims to investigate three relevant antecedents of digital transformation (digital orientation, digital intensity and digital maturity) and their influences on the financial success of companies.

Design/methodology/approach

Building on the strategic management and digital transformation literature, five hypotheses are developed to find the relationships between these antecedents and financial success.

Findings

Digital orientation and digital intensity alone do not contribute to the financial success of companies. Specifically, digital intensity serves as a negative moderator between digital orientation and financial success, meaning that it reduces the performance effects of digital orientation. Digital maturity acts as a mediator between digital orientation and the financial success of companies and between digital intensity and the financial success of companies.

Originality/value

This research contributes to the literature on strategic management and digital transformation by providing a further understanding of three relevant antecedents of digital transformation (digital orientation, digital intensity and digital maturity) and how they should be positioned alongside digital transformation settings to achieve financial success.

A Model to Evaluate the Effectiveness of the Maritime Shipping Risk Mitigation System by Entropy-Based Capability Degradation Analysis

Accurate evaluation of the risk mitigation status of navigating ships is essential for guaranteeing navigational safety. This research mainly focuses on the feasibility and accuracy of evaluating the real effectiveness of a risk mitigation system for navigating ships, including addressing the problem of immeasurableness for risk mitigation capability and determining the degradation regulation of risk mitigation capability over time. The proposed method to solve the problem is an effectiveness evaluation model based on the capability perspective, composed of a capability measurement algorithm based on entropy theory and capability degradation regulation analysis based on numerical process fitting. First, combined with the theoretical framework of a comprehensive defence system, the risk mitigation system designed for navigating ships is reconstructed based on capability building. Second, using a numerical fitting method, the degradation regulation of risk mitigation capability with time is obtained to improve the accuracy of the dynamic evaluation. Finally, referring to entropy theory, the uncertainty of capability is calculated, and then the model is constructed based on this uncertainty to realize the effectiveness evaluation from a capability perspective. The results obtained in an application test of the proposed model indicate that using the entropy of capability can realize an accurate effectiveness evaluation of a risk mitigation system for navigating ships, with a 9% improvement in accuracy, and the Weibull curve fitting is more consistent with capability degradation regulation, with a signification level of 2.5%. The proposed model provides a new path for evaluating the effectiveness of a risk mitigation system for navigating ships from the entropy of capability, and compared with the traditional probabilistic method, the model is more realistic and accurate in actual applications.

Strategic role of digital capability on business agility during COVID-19 era

COVID-19 is a real experience of volatile-uncertain-complex-ambiguous (VUCA) world. It has brought fundamental changes in leading people and managing business organizations. This article aims to elaborate business agility of public companies and to examine the impacts of digital capability and ambidextrous leadership - as the hypothesized influential factors on business agility. This article is based on a cross sectional study with involved participation of 103 CEOs, directors, and senior management. This result revealed that digital capability plays a strategic role in supporting top management to apply ambidextrous leadership in leading organization during turbulence times. From three aspects of business agility, Supply chain agility is most influential factors on firm performance rather than operation or marketing agility. This article has contributed for clarifying the indirect impact of digital capability on firm performance and proving the mediating role of business agility and ambidextrous leadership on the relationship between digital capability and firm performance at public companies.