A Study on the Impact of Digital Transformation, Innovation Capability on Innovation Performance of China’s High-Tech Listed Companies

Abstract

In today’s soaring digital economy, companies are experiencing increasingly fierce competition and a growing need for innovation performance. This paper examines the influence of digital transformation and innovation capability on the innovation performance of China’s high-tech listed companies. It develops a theoretical model that includes dynamic capability as a mediator variable. The study categorizes digital transformation into three dimensions: digital technology, digital product, and digital platform. Similarly, innovation capability is divided into technology capability, market capability, and integration capability. Dynamic capability is further divided into perception capability, absorption capability, and integration capability. Lastly, innovation performance is measured in terms of product innovation performance and process innovation performance. This paper examines the current situation and motivation influencing the innovation capability of high-tech companies in China that are listed on the stock market, taking the context of digital transformation into account. Based on this analysis, it proposes feasible realization path from the dimension level according to the proposed theoretical mechanism model, and gives four innovative strategies:  establishing an agile product development mechanism, building a unified digital collaboration platform, implementing a comprehensive market research mechanism, and implementing a cross-functional product development mechanism. Ultimately, this report offers pertinent recommendations for companies, governments, and investors. The findings have significant implications for China’s high-tech companies that aim to enhance their innovation performance through digital transformation and innovation capability.