TY - JOUR
T1 - Unlocking digital transformation in Industry 4.0
T2 - exploring organizational readiness, innovation and firm performance in Vietnam
AU - Vo, Huan Tuong
AU - Nguyen, Phuong Van
AU - Nguyen, Sam Thi Ngoc
AU - Vrontis, Demetris
AU - Bianco, Rosario
N1 - Publisher Copyright:
© 2024, Emerald Publishing Limited.
PY - 2024
Y1 - 2024
N2 - Purpose: Amidst the Industry 4.0 landscape, organizations are increasingly harnessing cutting-edge technologies and embracing digital change to fuel innovation. However, the full potential of innovation cannot be realized without organizational readiness. This study explores how various dimensions of organizational readiness and innovation influence digital change and firm performance. Design/methodology/approach: Data were gathered via a survey of 303 managers from both state-owned and private-owned enterprises in Ho Chi Minh City, Vietnam, and analyzed utilizing partial least squares–structural equation modeling (PLS–SEM). Findings: Organizational readiness positively influences both digital change and innovation. Additionally, innovation positively impacts digital change and mediates the relationship between organizational readiness and digital change. Furthermore, both innovation and digital change positively affect firm performance, whereas the control variable of ownership type has no significant correlation with firm performance. Finally, digital change mediates the relationship between innovation and firm performance. Originality/value: This study contributes to the digital innovation literature by empirically testing the influence of organizational readiness on digital change and innovation within the context of Vietnam. By investigating whether innovation and digital change enhance firm performance, this study also addresses inconsistencies in the literature.
AB - Purpose: Amidst the Industry 4.0 landscape, organizations are increasingly harnessing cutting-edge technologies and embracing digital change to fuel innovation. However, the full potential of innovation cannot be realized without organizational readiness. This study explores how various dimensions of organizational readiness and innovation influence digital change and firm performance. Design/methodology/approach: Data were gathered via a survey of 303 managers from both state-owned and private-owned enterprises in Ho Chi Minh City, Vietnam, and analyzed utilizing partial least squares–structural equation modeling (PLS–SEM). Findings: Organizational readiness positively influences both digital change and innovation. Additionally, innovation positively impacts digital change and mediates the relationship between organizational readiness and digital change. Furthermore, both innovation and digital change positively affect firm performance, whereas the control variable of ownership type has no significant correlation with firm performance. Finally, digital change mediates the relationship between innovation and firm performance. Originality/value: This study contributes to the digital innovation literature by empirically testing the influence of organizational readiness on digital change and innovation within the context of Vietnam. By investigating whether innovation and digital change enhance firm performance, this study also addresses inconsistencies in the literature.
KW - Digital change
KW - Firm performance
KW - Innovation
KW - Organizational readiness
UR - http://www.scopus.com/inward/record.url?scp=85195666877&partnerID=8YFLogxK
U2 - 10.1108/EJIM-03-2024-0273
DO - 10.1108/EJIM-03-2024-0273
M3 - Article
AN - SCOPUS:85195666877
SN - 1460-1060
JO - European Journal of Innovation Management
JF - European Journal of Innovation Management
ER -