The Impact of Digital Orientation on New Product Development Performance: Does Knowledge Intensity Matter?

Abstract

Digital orientation has become increasingly crucial for driving business success, but its impact on new product development (NPD) has not been fully explored in the existing literature. To address this gap, this paper draws upon dynamic capability theory to examine the relationship between digital orientation and NPD performance, as well as to elucidate the mechanism through which the former affects the latter. Hierarchical multiple regression analysis and partial least-square structure equation modeling are employed to analyze the data of 175 Chinese firms. The results indicate that digital orientation has a positive impact on NPD performance. Exploitation capability, exploration capability, and exploitation–exploration ambidexterity capability play partial mediating roles in the connection between digital orientation and NPD performance. Moreover, knowledge intensity exerts positive moderating effects on the relationships between digital orientation and exploitation, exploration, and exploitation–exploration ambidexterity capabilities.