The Impact of Digitalization on Business Performance: The Mediating Role of Consumer-centric Innovation and Organizational Agility
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Abstract
The purposes of this research were (1) to determine the relationship between digitalization, organizational agility, consumer-centric innovation, and business performance; (2) to examine the effect of digitalization on consumer-centric innovation, organizational agility, and business performance; (3) to examine the direct effect of consumer-centric innovation and organizational agility on business performance; and (4) to examine the indirect effect of digitalization on business performance through consumer-centric innovation and organizational agility. A quantitative research design was employed in this study. The research focused on the Chinese NEV sector, targeting professionals from NEV manufacturers, suppliers, and service providers. The samples used in this study comprised 511 respondents, selected through stratified random sampling. Structural Equation Modeling (SEM) was used for data analysis.
The research results were as follows: 1. There was a positive relationship between digitalization, organizational agility, consumer-centric innovation, and business performance; 2. Digitalization had a direct effect on consumer-centric innovation, organizational agility, and business performance; 3. Consumer-centric innovation and organizational agility had a direct effect on business performance; 4. Consumer-centric innovation and organizational agility significantly mediated the relationship between digitalization and business performance. This research highlights the critical role of digitalization in increasing business performance and the indirect effect of digitalization on business performance through consumer-centric innovation and organizational agility.
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