Purpose Despite the growing importance of digital innovation conceptualized as innovative digital solutions that enable digital transformation of businesses across industries, empirical study of factors related to digital innovation is still scant, creating a knowledge gap. To fill this gap, this paper aims to examine the effect of digital orientation and digital capability on digital innovation, and also the mediating effect of digital innovation on the link between organizational performance and digital orientation as well as digital capability. Design/methodology/approach This study tests a new conceptual framework using a survey data of 105 small to medium-sized IT firms in Malaysia and employing structural equation model (SEM) analysis from partial least square (PLS) approach. Findings The results show that digital orientation and digital capability have positive effect on digital innovation and also that digital innovation mediates the effect of technology orientation and digital capability on financial and non-financial performance. Practical implications The findings encourage the firms to take the opportunity of emerging digital technologies and digitalization trend in industries by being committed toward embracing new digital technologies and upgrading their digital capabilities to become innovation leaders and also to boost firms’ performance. Originality/value This study is one of the first studies that explain how emerging digital technologies can be leveraged to create innovative digital products and services and subsequently boost their business performance. It also fills the literature gaps related to driving factors of digital innovation and mediating role of digital innovation on the link between its driving factors and performance.
PurposeThe digital transformation towards Industry 4.0 (I4.0) has become imperative for manufacturers, as it makes them more flexible, agile and responsive to customers. This study aims to identify the factors influencing the manufacturing firms’ decision to adopt I4.0 and develop a triadic conceptual model that explains this phenomenon.Design/methodology/approachThis study used a qualitative exploratory study design based on multiple case studies (n = 15) from the manufacturing industry in Malaysia by conducting face-to-face interviews. The data were analysed using NVivo. The conceptual model was developed based on grounded theory and deductive thematic analysis.FindingsResults demonstrate that driving, facilitating and impeding factors play influential roles in a firms’ decision-making to adopt I4.0. The major driving factors identified are expected benefits, market opportunities, labour problem, customer requirements, competition and quality image. Furthermore, resources, skills and support are identified as facilitating factors and getting the right people, lack of funding, lack of knowledge, technical challenges, training the operators and changing the mindset of operators to accept new digital technologies are identified as impeding factors.Research limitations/implicationsDue to its qualitative design and limited sample size, the findings of this study need to be supplemented by quantitative studies for enhanced generalizability of the proposed model.Practical implicationsKnowledge of the I4.0 decision factors identified would help manufacturers in their decision to invest in I4.0, as they can be applied to balancing advantages and disadvantages, understanding benefits, identifying required skills and support and which challenges to expect. For policymakers, our findings identify important aspects of the ecosystem in need of improvement and how manufacturers can be motivated to adopt I4.0.Originality/valueThis study lays the theoretical groundwork for an alternative approach for conceptualizing I4.0 adoption beyond UTAUT (Unified Theory of Acceptance and Use of Technology). Integrating positive and negative factors enriches the understanding of decision-making factors for I4.0 adoption.
A start-up plays a significant role in the economic growth, employment opportunity, incubators for eco-innovation, and create a new market. Despite their important roles towards the economic and social growth, start-ups face difficulty in sustaining and surviving as the failure rate of start-up range between 50% and 95%, especially in emerging countries such as Malaysia. Therefore, it is important for start-ups in developing countries to identify specific support services that determine their success. In this study, we focus on technology-related, market-related, finance-related, and soft-related supports received by start-ups in Malaysia. The present study has collected data from 500 startups in Malaysia who were recipients of the funding from Malaysia government agencies. To the best of our knowledge, this study provides the first statistical test of how start-ups who were business owners or business partners receiving funding or support from the government agencies view the support system. Based on the analysis, this study provides evidence that support matters to start-up success. Technology-related, finance-related, and soft-related supports hold a significant relationship with the start-up success, while surprisingly, market-related support did not have a significant relationship with start-up success. Our results have extended previous research by highlighting the importance of these supports in driving start-up success and indicating how each dimension of these support services either enhances or inhibits start-up success.
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