Digital orientation and pivoting in new ventures: the role of dynamic capabilities

PurposeContinuous development of digital technology makes it necessary for digital entrepreneurs to pivot to cope with the environmental changes. However, limited research has focused on the important strategic orientation of digital new ventures in digital contexts, digital orientation, which depicts the tendency of new ventures to utilize digital technologies to create value. This research aims to explore the relationship between digital orientation and pivoting, along with the mediating role of dynamic capabilities as essential organizational competencies. Additionally, the study investigates the influence of boundary conditions related to the environmental dynamism and the prior experience of entrepreneurs.Design/methodology/approachThe data of this study were gathered by a two-phase survey of 328 Chinese digital new ventures in China with the assistance of entrepreneurial service organizations, entrepreneurship parks and entrepreneurial training institutions. The current study used regression analysis to verify the hypotheses and factor analysis to evaluate the validity and reliability of the measurement by using MPLUS, SPSS and PROCESS macro.FindingsThe findings of this research indicate that digital orientation enhances pivoting of digital new ventures, with dynamic capabilities acting as a crucial mediator in this process. Additionally, the dynamic environment and prior entrepreneurial experience influence both the relationship between digital orientation and dynamic capabilities, as well as the mediating effect of dynamic capabilities.Research limitations/implicationsThis study significantly contributes to the existing literature by exploring the relationship between digital orientation and pivoting in digital new ventures. This broadens the scope of research on pivoting and enriches the literature on digital orientation in the digital context. By emphasizing how these factors shape pivoting, our research provides valuable guidance for entrepreneurs responding to the dynamic environment and technological advances.Originality/valueThis research illuminates the relationship between digital orientation and pivoting based on the resource-based view (RBV) and dynamic capabilities theory (DCT). It explores the antecedent of digital orientation on digital new ventures' pivoting activities, reveals the internal mechanisms and boundary conditions and enriches the literature related to RBV and DCT in the digital entrepreneurship context.