Investigating the effect of a tripod organisational readiness model on organisational digital innovation with moderating role of innovation valance

Khalid M. Aboalganam and Hussain A.H. Awad

International Journal of Business Information Systems, 2023, vol. 43, issue 4, 465-485

Abstract: Digital innovation has gained legitimacy over the last few decades and proved to be an effective alternative in business operations. Therefore, the current research aims to investigate organisational readiness towards digital innovation with a tripod organisational readiness model which included organisational, technology and environmental factors. Alongside that the moderating effect of innovation valance is studied between digital innovation and firm performance. Data were analysed with the latest statistical approach namely structural equation modelling (SEM). Findings showed a substantial variance R² 53.8% in digital innovation in organisation and R² 54.5% variance in firm performance. The predictive relevance of the model was tested with Q² indicated substantial power to predict digital innovation and firm performance. The IPMA analysis suggests that policymakers need to focus on top management support, IT infrastructure and innovation valance for successful deployment of the digital innovation in organisations which in turn boost firm performance.

Keywords: digital innovation; tripod organisational readiness model; IT infrastructure; innovation valance; firm performance; structural equation modelling; SEM. (search for similar items in EconPapers)
Date: 2023
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