Bridging IT Competence and Digital Orientation: Exploring the Influence of IT Management and Board IT Competencies on Firm Performance through Digital Orientation

Abstract

A digital orientation (DO) is a crucial aspect of firms' response to the rapidly changing digital landscape. It signifies a firm’s commitment and readiness to adopt digital technologies. However, there are significant gaps in our understanding of the drivers and outcomes of DO. This paper aims to address these gaps by investigating two key questions: how do IT management and board IT competencies influence DO, and what is the subsequent impact of DO on firm performance? Grounded in the resource-based view, our study is based on survey data from 75 board directors. Our findings suggest that IT management and an IT-competent board can shape a firm’s DO, but the link to firm performance is yet to be established and requires further investigation. This research contributes to the existing literature on the drivers and outcomes of DO and provides practical implications for practitioners seeking to enhance their firm's DO.