The Influence of a Company's Digital Orientation on its Innovation Commitment. A Moderating Model of Industry Growth and Environmental Dynamism

Seminar paper from the year 2022 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Johannes Gutenberg University Mainz, language: English, abstract: Companies are striving to digitize, innovate and improve their competitive advantage. This in turn heavily depends on the company's environment, especially the growth of the industry in which the company is located, as well as the environmental dynamism. Therefore, the question of how a company's digital orientation influences the company's commitment to innovation is addressed in this paper. In addition, industry growth and environmental dynamics may moderate the effect.

To investigate the relationships, we looked at the 500 largest listed companies in the United States and use computer aided text analysis (CATA) as well as quantitative methodologies, such as multiple regression analysis, to investigate our research construct. We aim to show that digital orientation is positively related to innovation commitment of firms and expect industry growth as well as environmental dynamism to intensify this connection.

With our findings, we aim to advance knowledge on competitive advantage in the digital transformation and specifically on the new construct of digital orientation. The results of this research construct are crucial for both research and practice and lead to many new research opportunities.