How does digital technology usage benefit firm performance? Digital transformation strategy and organisational innovation as mediators

ABSTRACT

Digital technology usage has been extensively studied in academic research and industry. A deeper look at firm performance shows that digital transformation strategy and organisational innovation are facilitated by digital technology usage. This study further examined the mediating effects of digital transformation strategy and organisational innovation on the relationship between digital technology usage and firm performance. An empirical study was performed based on a survey of supervisors from financial industries in Taiwan. Two hundred twenty-seven companies responded to the questionnaires. The findings indicated that digital technology usage has positive influences on digital transformation strategy and organisational innovation, which in turn influence firm performance. Furthermore, digital transformation strategy and organisational innovation played full mediating roles between digital technology usage and firm performance.

KEYWORDS:

• Digital technology usage
• digital transformation strategy
• organisational innovation
• firm performance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Notes on contributors

Hung-Tai Tsou

Hung-Tai Tsou is an Associate Professor of the Department of Business Administration, Soochow University, Taiwan. He received his PhD from Graduate School of Management, Yuan Ze University. His primary research focus includes service innovation and interfirm co-development. His publications can be found in Management Decision, Journal of Service Management, Journal of Services Marketing, Technology Analysis & Strategic Management, Journal of Business & Industrial Marketing, Asia Pacific Journal of Management; Journal of Service Research, Information and Management; International Journal of Information Management; Industrial Marketing Management; Journal of Engineering and Technology Management; Service Industries Journal; and Information Research.

Ja-Shen Chen

Ja-Shen Chen is currently a Professor of the College of Management, Yuan Ze University, Taiwan. He holds MS and PhD degrees from Rensselaer Polytechnic Institute, New York. He has published numerous papers in the areas of service innovation, customer relationship management and e-business management. He also serves as a consultant or a board member for some well-known companies in Taiwan.