The Effect of Digital Innovation Capability on Radical Innovation in Strategic Emerging Industries -The Moderating Effect of Environmental Dynamism

Abstract

Abstract: In the era of the digital economy, the process and boundary of radical innovation are changing. Digital innovation capability has become important for strategic emerging industries to achieve radical innovation in a complex and changeable environment. Based on dynamic capability theory, this paper discusses two directions and four digital innovation capability upgrading activities. Taking 320 stra-tegic emerging industries as samples, using the hierarchical regression method to explore how digital agility and recombinative capability influence the strategic emerging industry radical innovation, and technological dynamics, market dynamics adjustment between the two. The results show that digital agility and recombinative capability positively affect radical innovation in strategic emerging industries. And the opportunity awareness, operation coordination, adaptive restructuring and reorganization of exploratory play a role in the four activi-ties, technology dynamics and market dynamics play a role in positive adjustment, but the adjustment effect varies from case to case. This study aims to further reveal the mechanism of how digital innovation capability influences radical innovation and provide a theoretical basis and decision-making reference for strategic emerging industries to achieve radical innovation results by taking advantage of digital opportunities.

Key words: strategic emerging industries, digital innovation capability, radical innovation, environmental dynamism, moderating effect

Wang Hongqi, Li Yuqing, Li Xiaoli, Zhang Linfeng, Li Yingying. The Effect of Digital Innovation Capability on Radical Innovation in Strategic Emerging Industries -The Moderating Effect of Environmental Dynamism[J]. Management Review, 2024, 36(5): 89-100.

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