Digital orientation, organizational agility, and digital product and service innovation performance in healthcare firms

Abstract

Digital product and service innovation (DPSI) has garnered significant interest from both management academics and practitioners. Prior research has established that information technology and digitization capabilities positively affect DPSI performance. The issue of whether and how digital orientation (DO) can enhance DPSI performance remains unanswered in digital healthcare. This study addresses these deficiencies by examining the mediating function of organizational agility and the moderating influence of organizational inertia (OI). A questionnaire-based, time-lagged study with a 1-month interval. From December 2024 and July 2025, we collected a total of 345 questionnaires from entrepreneurs, examining the hypotheses through hierarchical regression and bootstrapping techniques. Our studies demonstrate positive, significant relationships between DO and DPSI performance. The results indicate that the influence of DO on DPSI performance is mediated by entrepreneurial agility (EA) and adaptive agility (AA), whereas OI weakens the direct relationship between organizational agility and DPSI performance. This study offers managers and practitioners useful information about using DO as a strategy, showing the potential benefits of DO and different organizational agility in achieving DPSI performance in healthcare firms. This study expands the research related to dynamic capability theory in the area of digitalization and healthcare, which provides boundary conditions for the mechanism of the relationship between organizational agility and DPSI performance.