Driven by the new wave of technological revolution and industrial transformation, firms are accelerating strategic change to gain new competitive advantages. Situated within a complex adaptive system, firms must adapt to highly dynamic and uncertain external environments by adjusting executive cognitive structures, reconfiguring resources and capabilities, and strengthening collaboration with industrial ecosystem elements; hence, digital strategic change is characterized by continuous evolution. Using a sample of Chinese A-share listed firms from 2015 to 2023, this study develops a “cognition–capability–strategy” pathway model grounded in upper echelons theory and dynamic capabilities theory to examine how executive cognitive styles, i.e., cognitive flexibility and cognitive complexity, drive digital strategic change via absorptive capacity and how environmental dynamism moderates these relationships. The findings show that executive cognition, as a decision node in strategic change, can dynamically adjust firms’ strategic paths by activating absorptive capacity in rapidly changing external information environments; environmental dynamism differentially affects the two cognitive styles. Heterogeneity tests further indicate that the role of executive cognition varies significantly with regional digital economy development levels, firm life cycle, and industry factor intensities. The study reveals how firms can respond to high environmental uncertainty through cognition–strategy alignment and resource capability reconfiguration in a complex adaptive system, providing theoretical references and practical insights for emerging economies to advance digital transformation and enhance competitiveness.
Guo et al. (Thu,) studied this question.
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