Impact of digital technology usage on firm resilience: a dynamic capability perspective

Fei Ye; Min Ke; You Ouyang; Yina Li; Lixu Li; Yuanzhu Zhan; Minhao Zhang

doi:10.1108/SCM-12-2022-0480

Impact of digital technology usage on firm resilience: a dynamic capability perspective

Fei Ye, Min Ke, You Ouyang, Yina Li, Lixu Li^*, Yuanzhu Zhan, Minhao Zhang

^*Corresponding author for this work

Management

Research output: Contribution to journal › Article › peer-review

Abstract

Purpose: While the usage of digital technology can bring many operational improvements for firms, it is unclear whether it can effectively improve firm resilience to deal with supply chain disruptions caused by emergencies such as COVID-19. From a dynamic capability perspective, this study aims to investigate how digital technology usage can improve firm resilience in a rapidly changing and turbulent environment.

Design/methodology/approach: Based on the survey sample of 237 Chinese firms, the stepwise regression approach was used to examine the proposed research hypotheses.

Findings: The empirical evidence shows that digital technology usage has a U-shaped effect on firm resilience, and that effect is fully achieved by first affecting market acuity and then promoting resource reconfiguration. Moreover, the authors further found that the U-shaped association between digital technology usage and firm resilience is derived from the U-shaped association between digital technology usage and market acuity.

Originality/value: This study enriches the resilience literature by revealing the mechanism of digital technology usage’s effects rather than focusing on the role of specific digital technologies. This study also provides guidance for firms to develop effective digital technology usage strategies.

Original language	English
Pages (from-to)	162-175
Number of pages	14
Journal	Supply Chain Management
Volume	29
Issue number	1
Early online date	22 Aug 2023
DOIs	https://doi.org/10.1108/SCM-12-2022-0480
Publication status	Published - 2 Jan 2024

Bibliographical note

Funding Information:
This work is supported by the Major program of National Social Science Foundation of China (22&ZD082), National Natural Science Foundation of China (71771090, 72071080), Joint Funds of NSFC and Guangdong Province, China (U1901222), the Social Science Foundation of Guangdong, China (GD22CGL24), Guangdong Basic and Applied Basic Research Foundation, China (2021A1515011884, 2023A1515012529), Shaanxi Provincial Department of Education (22JK0120), and Shaanxi Provincial Federation of Social Sciences (2022HZ1204).

Publisher Copyright:
© 2023, Emerald Publishing Limited.

Keywords

Digital technology usage
Dynamic capability
Firm resilience
Market acuity
Resource reconfiguration

ASJC Scopus subject areas

Strategy and Management

Access to Document

10.1108/SCM-12-2022-0480

Cite this

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title = "Impact of digital technology usage on firm resilience: a dynamic capability perspective",

abstract = "Purpose: While the usage of digital technology can bring many operational improvements for firms, it is unclear whether it can effectively improve firm resilience to deal with supply chain disruptions caused by emergencies such as COVID-19. From a dynamic capability perspective, this study aims to investigate how digital technology usage can improve firm resilience in a rapidly changing and turbulent environment. Design/methodology/approach: Based on the survey sample of 237 Chinese firms, the stepwise regression approach was used to examine the proposed research hypotheses. Findings: The empirical evidence shows that digital technology usage has a U-shaped effect on firm resilience, and that effect is fully achieved by first affecting market acuity and then promoting resource reconfiguration. Moreover, the authors further found that the U-shaped association between digital technology usage and firm resilience is derived from the U-shaped association between digital technology usage and market acuity. Originality/value: This study enriches the resilience literature by revealing the mechanism of digital technology usage{\textquoteright}s effects rather than focusing on the role of specific digital technologies. This study also provides guidance for firms to develop effective digital technology usage strategies.",

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author = "Fei Ye and Min Ke and You Ouyang and Yina Li and Lixu Li and Yuanzhu Zhan and Minhao Zhang",

note = "Funding Information: This work is supported by the Major program of National Social Science Foundation of China (22&ZD082), National Natural Science Foundation of China (71771090, 72071080), Joint Funds of NSFC and Guangdong Province, China (U1901222), the Social Science Foundation of Guangdong, China (GD22CGL24), Guangdong Basic and Applied Basic Research Foundation, China (2021A1515011884, 2023A1515012529), Shaanxi Provincial Department of Education (22JK0120), and Shaanxi Provincial Federation of Social Sciences (2022HZ1204). Publisher Copyright: {\textcopyright} 2023, Emerald Publishing Limited.",

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AU - Li, Yina

AU - Li, Lixu

AU - Zhan, Yuanzhu

AU - Zhang, Minhao

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N2 - Purpose: While the usage of digital technology can bring many operational improvements for firms, it is unclear whether it can effectively improve firm resilience to deal with supply chain disruptions caused by emergencies such as COVID-19. From a dynamic capability perspective, this study aims to investigate how digital technology usage can improve firm resilience in a rapidly changing and turbulent environment. Design/methodology/approach: Based on the survey sample of 237 Chinese firms, the stepwise regression approach was used to examine the proposed research hypotheses. Findings: The empirical evidence shows that digital technology usage has a U-shaped effect on firm resilience, and that effect is fully achieved by first affecting market acuity and then promoting resource reconfiguration. Moreover, the authors further found that the U-shaped association between digital technology usage and firm resilience is derived from the U-shaped association between digital technology usage and market acuity. Originality/value: This study enriches the resilience literature by revealing the mechanism of digital technology usage’s effects rather than focusing on the role of specific digital technologies. This study also provides guidance for firms to develop effective digital technology usage strategies.

AB - Purpose: While the usage of digital technology can bring many operational improvements for firms, it is unclear whether it can effectively improve firm resilience to deal with supply chain disruptions caused by emergencies such as COVID-19. From a dynamic capability perspective, this study aims to investigate how digital technology usage can improve firm resilience in a rapidly changing and turbulent environment. Design/methodology/approach: Based on the survey sample of 237 Chinese firms, the stepwise regression approach was used to examine the proposed research hypotheses. Findings: The empirical evidence shows that digital technology usage has a U-shaped effect on firm resilience, and that effect is fully achieved by first affecting market acuity and then promoting resource reconfiguration. Moreover, the authors further found that the U-shaped association between digital technology usage and firm resilience is derived from the U-shaped association between digital technology usage and market acuity. Originality/value: This study enriches the resilience literature by revealing the mechanism of digital technology usage’s effects rather than focusing on the role of specific digital technologies. This study also provides guidance for firms to develop effective digital technology usage strategies.

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Impact of digital technology usage on firm resilience: a dynamic capability perspective

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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