Organizational culture, digital transformation, and product innovation

Abstract

This research fills a knowledge gap by introducing a new conceptualization of digital transformation through a multidimensional digital transforming capability. It further examines the influence of four cultural types on this capability and its subsequent impact on product innovation. Empirical findings reveal that adhocracy, followed in descending order of influence by clan, market, and hierarchy cultures, is positively related to digital transforming capability, which in turn is positively related to product innovation in terms of new product newness, meaningfulness, and performance. Additionally, new product newness and meaningfulness each positively mediate the effect of digital transforming capability on new product performance.