Research on the impact of digital technology applications on firms' dual innovation in the digital economy context

Abstract

AbstractIn recent years, applications of digital technology have gradually become the primary driving force for enterprise innovation. Although the impact of digital technology applications on enterprise innovation has been recognized by the academic community, existing studies have failed to systematically reveal the mechanism of digital technology applications on firms' dual innovation, overlooking the data-driven dynamic characteristics of innovation development in the digital era, and neglecting external conditions such as environmental complexity. Therefore, based on dynamic capability theory and resource orchestration theory, this study adopts a “technology-economy” research paradigm to explore and analyze the impact of digital technology applications on dual innovation. It also analyzes the mediating role of data-driven dynamic capabilities and the moderating effect of environmental complexity. The article conducts an empirical test using microdata of Chinese Shanghai and Shenzhen A-share listed firms from 2010 to 2021.The research results show that digital technology applications positively promote dual innovation of enterprises and exhibit certain heterogeneity. Data-driven dynamic capabilities play a mediating role in the relationship between digital technology applications and dual innovation. The study also tests the moderating effect of environmental complexity and finds that the higher environmental complexity in which the company operates, the stronger the facilitating effect of digital technology applications.