Figure 2
The model starts with five predictor variables on the left, each in a rectangle: “Information technology capabilities”, “Value co-creation”, “Market pressure”, “Technological anxiety”, and “Government policies”. These five variables lead to two central mediating variables, each in a rectangle: “Digital transformation (R-squared equals 0.560)” (top) and “Organizational innovativeness (R-squared equals 0.688)” (bottom). The hypothesized direct relationships are shown by arrows: Paths to “Digital transformation”: A solid arrow labeled “beta equals 0.337 triple asterisk” connects “Information technology capability” to “Digital transformation”. A solid arrow labeled “beta equals 0.097 asterisk” connects “Value co-creation” to “Digital transformation”. A solid arrow labeled “beta equals 0.444 triple asterisk” connects “Market pressure” to “Digital transformation”. A dashed arrow labeled “beta equals 0.030 non-significant” connects “Technological anxiety” to “Digital transformation”. A solid arrow labeled “beta equals 0.074 asterisk” connects “Government policies” to “Digital transformation”. Paths to “Organizational innovativeness”: A solid arrow labeled “beta equals 0.132 asterisk” connects “Information technology capability” to “Organizational innovativeness”. A solid arrow labeled “beta equals 0.431 triple asterisk” connects “Value co-creation” to “Organizational innovativeness”. A solid arrow labeled “beta equals 0.111 asterisk” connects “Market pressure” to “Organizational innovativeness”. A dashed arrow labeled “beta equals 0.032 non-significant” connects “Technological anxiety” to “Organizational innovativeness”. A solid arrow labeled “beta equals 0.078 asterisk” connects “Government policies” to “Organizational innovativeness”. A solid arrow labeled “beta equals 0.351 triple asterisk” connects “Digital transformation” to “Organizational innovativeness”. The mediating variables lead to the final outcome, “Firms‘ financial performance (R-squared equals 0.544)” (on the right, in a rectangle): A solid arrow labeled “beta equals 0.432 triple asterisk” connects “Digital transformation” to “Firms’ financial performance”. A solid arrow labeled “beta equals 0.371 triple asterisk” connects “Organizational innovativeness” to “Firms‘ financial performance”. A box on the top right shows the following information: A solid arrow represents “Supported”, and a dashed arrow represents “Not supported”. Beta equals path coefficient: p less than 0.05 asterisk, p less than 0.01 triple asterisk. n s equals non-significant.The path coefficient model. Source(s): Authors’ elaboration