Design Thinking and Innovation Performance of Small and Medium-sized Enterprises in Guangxi: The Mediating Effects of Digital Transformation Ambidexterity
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Abstract
SME executives face limited access to actionable frameworks and best practices for leveraging design thinking methodologies to drive organizational innovation capabilities. This article aimed to study (1) the relationships of design thinking, digital transformation ambidexterity (exploitative and exploratory), and organizational innovation performance; (2) the moderating roles of institutional environment (regulatory, normative, and cognitive) between design thinking and organizational innovation performance in SMEs in Guangxi, China. The sample was managers and staff selected from 1490 innovative SMEs in Guangxi. The research utilized a quota sampling approach to gather 390 valid survey responses, followed by an examination of variable interconnections through descriptive statistics and structural equation modeling (SEM) analysis. The research results reveal that Design Thinking not only directly and positively affects SMEs’ innovation performance but also exerts indirect positive effects through digital transformation ambidexterity, meanwhile indicating that normative and cognitive environment relationships moderate the effects of Design Thinking on organizational innovation performance. The results emphasize the importance of design thinking and digital transformation among SMEs. These findings provide new perspectives for academic discussions on organizational innovation management and offer valuable practical insights for SMEs seeking to enhance organizational innovation performance and achieve competitive advantages via design thinking and digital transformation.
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