The Impact of Digital Capability on Manufacturing Company Performance

Xiaoli Wang, Ying Gu, Mahmood Ahmad and Chaokai Xue
Additional contact information
Xiaoli Wang: School of Economics and Management, Northwest University, Xi’an 710127, China
Ying Gu: School of Economics and Management, Northwest University, Xi’an 710127, China
Mahmood Ahmad: Business School, Shandong University of Technology, Zibo 255000, China
Chaokai Xue: Business School, Shandong University of Technology, Zibo 255000, China

Sustainability, 2022, vol. 14, issue 10, 1-24

Abstract: Digital capability is an advanced capability that manufacturing companies need for their digital and intelligent development. At present, the influence mechanism behind the impact of digital capability on manufacturing companies’ performance is still unclear and lacks quantitative analysis. Based on the dynamic capability view, we propose a research model to investigate digital capability, digital innovation, value co-creation, and company performance and conduct an empirical study based on questionnaire data from 209 digital manufacturing companies. The empirical results show that digital capability has a significant positive impact on company performance. The results further show that digital innovation mediates the effect of digital capability on performance within a company, while outside the company, value co-creation mediates the impact of digital capability on company performance. This research provides empirical support in favor of companies developing digital capabilities in the context of digital transformation and offers theoretical insight into the contradiction between the potential value of digital capability and companies’ practice.

Keywords: digital capabilities; digital innovation; value co-creation; company performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/10/6214/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/10/6214/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:10:p:6214-:d:819713

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().