Effects of digital orientation on organizational resilience: a dynamic capabilities perspective

Abstract

Purpose: This study aims to investigate the impact of digital orientation (DO) on organizational resilience (OR) and explore the contingency effects of human resource slack and nature of enterprise ownership. Design/methodology/approach: The model hypotheses were tested using fixed effects regression on panel data collected from Chinese A-share listed manufacturing firms spanning from 2007 to 2020. Findings: DO has a positive effect on OR. Human resource slack positively moderates the relationship between DO and OR. Additionally, DO enhances OR more effectively in non-state-owned firms than in state-owned firms. Research limitations/implications: This study relies on data from a single industry from a single country. Practical implications: The study supports that firms facing uncertainty, risk and pressure should promptly develop their DO strategy. Firms can derive greater resilience from implementing a DO strategy when they have a high-level human resource pool. State-owned enterprises will benefit from a DO strategy if they make some adaptive changes in leadership, structure, culture and mindset aspects. Originality/value: This study is the first to examine the relationship between DO and OR, contributing to the existing literature on digital transformation and organizational resilience. It offers valuable insights for practitioners and policymakers seeking to adapt their organizations for the digital era and foster predictive, defensive and growth responses strategies in a dynamic business environment.