The Digital Imperative: Dynamic Managerial Capabilities, Organizational Readiness, and Innovation in China’s High-Tech Frontier
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Abstract
Background and Aim: The Chengdu–Chongqing high-tech corridor has emerged as one of China’s major innovation hubs, playing a significant role in regional technological development and economic transformation. Despite the growing importance of digital transformation, the mechanisms through which internal managerial capabilities contribute to innovation performance remain insufficiently understood. This study aims to examine the direct and indirect effects of dynamic managerial capabilities (DMCs) on innovation performance (IP), investigate the mediating role of organizational readiness (OR), and evaluate the moderating influence of environmental factors (EFs) within high-tech firms operating in the Chengdu–Chongqing region.
Materials and Methods: Grounded in Dynamic Capabilities Theory and the Resource-Based View (RBV), this study developed a four-dimensional DMC framework incorporating digital literacy as a core managerial capability. Quantitative data were collected through survey questionnaires from 488 managers employed in high-tech enterprises located in the Chengdu–Chongqing high-tech corridor. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the relationships among DMCs, organizational readiness, environmental factors, and innovation performance.
Results: The findings reveal that dynamic managerial capabilities significantly enhance both organizational readiness and innovation performance. Organizational readiness was found to partially mediate the relationship between DMCs and innovation performance, indicating that managerial capabilities improve innovation outcomes through strengthening internal organizational preparedness and adaptability. Among the examined environmental factors, only the relationship between DMCs and organizational readiness was significantly moderated by contextual environmental conditions. The results further confirm the importance of digital literacy as a strategic managerial competency in supporting innovation within dynamic and technology-intensive environments.
Conclusion: This study extends the theoretical framework of dynamic managerial capabilities by integrating digital literacy into the DMC construct and validating organizational readiness as a critical mechanism linking managerial capabilities to innovation performance. The findings provide practical implications for high-tech firms and policymakers in emerging economies by emphasizing the importance of strengthening internal readiness systems, managerial adaptability, and digital competencies to maximize innovation performance in rapidly changing business environments.
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