Abstract
This research examines the effect of digital orientation on firm performance within the framework of organizational orientation theory. Focusing on a sample of Malaysian listed companies from 2012 to 2019, we employed robust panel regression alongside dynamic generalized method of moments panel and panel quantile regression models as supplementary analyses. The digital orientation was evaluated using Python-based text analysis. Surprisingly, our findings challenge conventional wisdom: Contrary to expectations, digital orientation exhibited no significant influence on firm performance metrics such as returns on assets, returns on equity and Tobin’s Q. This contradicts organizational orientation theory, suggesting that transitioning towards digitalization might not inherently enhance performance. Our study argues that adopting digitalized business practices may not ensure improved firm performance, particularly in emerging economies like Malaysia.
| Original language | English |
|---|---|
| Pages (from-to) | (In-Press) |
| Number of pages | 10 |
| Journal | Vision: The Journal of Business Perspective |
| Volume | (In-Press) |
| DOIs | |
| Publication status | E-pub ahead of print - 22 Aug 2024 |
Bibliographical note
This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pageFunder
The authors received no financial support for the research, authorship and/or publication of this article.Keywords
- Digital Orientation
- Firm Performance
- Organizational Orientation