Enterprise Digital Transformation, Dynamic Capabilities and Innovation Performance

Abstract

Accelerating enterprise digital transformation is a necessary way to achieve high-quality economic development under the new development pattern, and it also provides an opportunity for enterprise development to "change the lane to overtake", so it is necessary to discuss the effect and mechanism of enterprise digital transformation to improve innovation performance. Based on the theory of technological innovation and the theory of dynamic capability, we use text analysis to construct the index of enterprise digital transformation from 20008 to 2022, empirically examine how enterprise digital transformation affects innovation performance, explore the mediating effect of dynamic capability, and summarize the "enterprise digital transformation--dynamic capability--innovation performance". The mediating effect of dynamic capabilities is explored, and the path of "enterprise digital transformation - dynamic capabilities - innovation performance" is summarized. We empirically test the impact of enterprise digital transformation on innovation performance and its mechanism. The empirical results show that digital transformation significantly affects the dynamic capability decision-making behavior of enterprises, and the innovation performance of enterprises is significantly improved as a result. The findings provide micro evidence for the study of the intrinsic mechanism of enterprise digital transformation to promote innovation performance, and provide clear insights for enterprises to promote digital transformation, develop dynamic capabilities, and improve innovation performance.