How digitalization and information technology adoption affect firms' innovation performance: evidence from Chinese automotive firms

Purpose This study aims to explore how the application of digital technology and information technology can help firms improve their innovation performance and examines the mediating mechanisms of supply chain agility and supply chain integration. Design/methodology/approach This study conducted a questionnaire survey of 320 business managers in an automotive cluster in China and analyzed the collected data using structural equations. Findings Digital technology applications (DTA) have a positive impact on innovation performance, while supply chain agility and integration mediate this impact. In addition, information technology applications (ITA) also has a positive impact on innovation performance, while supply chain agility and integration mediate between the two. Supply chain agility (SCA) and supply chain integration (SCI) significantly enhance the positive impact of technology adoption on firms' innovation performance. Originality/value This study confirms the impact of digital technology and information technology applications on innovation performance and explores the mediating role played by supply chain agility and integration.