Revisiting dynamic capability for organizations' innovation types: does it matter for organizational performance in China?

Abstract

Purpose – Despite the existing literature on the impact of IT capability and innovation capabilities, this study examines how IT-enabled dynamic capability dimensions impact on firm innovative capability to achieve organizational performance. Design/methodology/approach – Drawing on the dynamic capability theory, this study empirically investigates the entire chain of relationships among dynamic capability, innovative capability, organizational performance and turbulent environment. Findings – Using the data from 254 Chinese firms, this study reveals IT-enabled dynamic capability dimensions have positive and significant relationship with firm innovative capability types, which in turn have significant relationship with organizational performance except the process innovation. Research limitations/implications – This study contributes to the growing information systems literature and also suggests theoretical and practical implications. Originality/value – This study examines IT-enabled dynamic capability with firm innovative capability types, which has received limited attention in the past.