The impact of digitalisation vision and information technology on organisations' innovation

Tajudeen, Farzana Parveen and Nadarajah, Devika and Jaafar, Noor Ismawati and Sulaiman, Ainin (2022) The impact of digitalisation vision and information technology on organisations' innovation. European Journal Of Innovation Management, 25 (2). pp. 607-629. ISSN 1460-1060, DOI https://doi.org/10.1108/EJIM-10-2020-0423.

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Abstract

Purpose Based on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance. Design/methodology/approach Data for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives. Findings Results showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance. Originality/value Digital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.

Item Type: Article
Funders: University Malaya Research Fund Assistance (BKP) (Grant No. BK071-2017)
Uncontrolled Keywords: Digitalisation; Information technology; Process innovation capability; Innovation performance; IT integration; IT agility
Subjects: T Technology > T Technology (General)
Divisions: Faculty of Business and Economics
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 08 Oct 2023 11:41
Last Modified: 08 Oct 2023 13:11
URI: http://eprints.um.edu.my/id/eprint/42468

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