Abstract:

The automotive components industry is undergoing a significant digital transformation, driven by the integration of modern technologies across business operations and vehicle manufacturing. This transformation is essential for enhancing innovation performance and maintaining competitive advantage. This study examines how digital transformational capability impacts innovation performance within this industry, with a specific focus on the mediating role of organizational ambidexterity. Utilizing partial least squares structural equation modeling (PLS-SEM), the study tests four hypotheses: digital transformational capability affects both organizational ambidexterity and innovation performance; organizational ambidexterity influences innovation performance; and organizational ambidexterity mediates the relationship between digital transformational capability and innovation performance. The results indicate that both digital transformational capability and organizational ambidexterity significantly enhance innovation performance, with organizational ambidexterity serving as a partial mediator in this relationship. These findings are vital for industry leaders seeking to foster digital transformation and leverage ambidexterity to enhance innovation capabilities. The study contributes to the field by empirically exploring the interplay of these constructs in the context of the automotive components industry, providing strategic guidance for navigating the digital era.