Firm Performance Driven by Digital Technology: The Mediat-ing Role of Strategy and Innovation
Keywords:
digital technology usage, digital transformation strategy, organizational innovation, firm performance, financial industryAbstract
The role of digital technology in shaping business outcomes has been widely examined in both scholarly and industry contexts. Within this framework, firm performance is increasingly linked to how digital transformation strategies and organizational innovation are enabled by the use of digital technologies. This research explores the mediating influence of digital transformation strategy and organizational innovation on the connection between digital technology adoption and firm performance. To investigate this relationship, a survey was conducted among supervisors working in Taiwan’s financial sector, with responses collected from 227 firms. The empirical findings demonstrate that digital technology usage positively contributes to the development of digital transformation strategies and fosters organizational innovation. These elements, in turn, enhance firm performance. Moreover, the analysis highlights that both digital transformation strategy and organizational innovation act as full mediators in the pathway between digital technology adoption and firm performance. The study provides valuable insights into the mechanisms through which digital technologies can strengthen organizational competitiveness and performance outcomes.
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