How Does Digital Transformation Improve Organizational Resilience?—Findings from PLS-SEM and fsQCA

Abstract

Digital transformation has become a critical path for enterprises to improve organizational resilience, and has been widely considered by both academia and business practice. However, the extant literature focuses on the concepts and antecedents of digital transformation and the outcomes of digital transformation, lacking of exploring the effect mechanism of digital transformation of enterprises on organizational resilience. Based on the perspective of dynamic capacity and the theoretical path of “digital transformation—ambidextrous innovation—organizational resilience”, this study constructs a theoretical model to explore a path where digital transformation affects both exploitative innovation and exploratory innovation, and further affects the organizational resilience of enterprises. By performing a questionnaire investigation with 339 Chinese enterprises, this study adopted both a fuzzy-set qualitative comparative analysis (fsQCA) and structural equation modeling (SEM) to explore the relationships among digital transformation, ambidextrous innovation, and organizational resilience. The results show that the digital transformation of enterprises helps to improve organizational resilience. Additionally, digital transformation has a positive impact on the organizational resilience of enterprises mediated by both exploitative innovation and exploratory innovation. Finally, both exploitative innovation and exploratory innovation of enterprises have a positive impact on organizational resilience, and there is a complementary relationship between exploitative innovation and exploratory innovation. Further qualitative comparative analysis also shows that there are three types of configurations for achieving organizational resilience: digital transformation and exploitative innovation, digital transformation and exploratory innovation, and exploitative innovation and exploratory innovation. The paper is concluded by highlighting the importance of the practical significance for enterprises to effectively carry out digital transformation and further achieve organizational resilience.

Digital transformation has become a critical path for enterprises to improve organizational resilience, and has been widely considered by both academia and business practice. However, the extant literature focuses on the concepts and antecedents of digital transformation and the outcomes of digital transformation, lacking of exploring the effect mechanism of digital transformation of enterprises on organizational resilience. Based on the perspective of dynamic capacity and the theoretical path of “digital transformation—ambidextrous innovation—organizational resilience”, this study constructs a theoretical model to explore a path where digital transformation affects both exploitative innovation and exploratory innovation, and further affects the organizational resilience of enterprises. By performing a questionnaire investigation with 339 Chinese enterprises, this study adopted both a fuzzy-set qualitative comparative analysis (fsQCA) and structural equation modeling (SEM) to explore the relationships among digital transformation, ambidextrous innovation, and organizational resilience. The results show that the digital transformation of enterprises helps to improve organizational resilience. Additionally, digital transformation has a positive impact on the organizational resilience of enterprises mediated by both exploitative innovation and exploratory innovation. Finally, both exploitative innovation and exploratory innovation of enterprises have a positive impact on organizational resilience, and there is a complementary relationship between exploitative innovation and exploratory innovation. Further qualitative comparative analysis also shows that there are three types of configurations for achieving organizational resilience: digital transformation and exploitative innovation, digital transformation and exploratory innovation, and exploitative innovation and exploratory innovation. The paper is concluded by highlighting the importance of the practical significance for enterprises to effectively carry out digital transformation and further achieve organizational resilience.