Navigating the digital frontier: unveiling the critical thresholds and strategic conditions for innovation performance in healthcare organizations

Purpose This research aims to examine the effects of digital technology integration, dynamic capabilities and technological orientation on the innovation performance of China’s healthcare organizations. Design/methodology/approach Based on the dynamic capabilities view, this research employs a methodological triangulation approach, using partial least squares structural equation modeling (PLS-SEM), fuzzy-set Qualitative Comparative Analysis (fsQCA) and necessary condition analysis (NCA) to investigate how these digital change drivers interact. Findings The PLS-SEM findings reveal robust, positive interactions between technology integration, digital dynamic capabilities and innovation performance. Furthermore, this study demonstrates that technological orientation moderates the interplay among technology integration, dynamic capabilities and innovation performance. This implies that a strategic emphasis on technology will likely yield more innovation performance. The results from fsQCA highlight the need for precise configurations and conditions that lead to fruitful digital transformation in healthcare, given the variability and complexity of these transformations. The NCA results also show the thresholds and requirements for maximum digital integration in the healthcare industry. Originality/value The study contributes by examining how digital technology integration, digital dynamic capabilities and technological orientation jointly influence digital innovation performance. Its originality lies in the combined use of PLS-SEM, fsQCA and NCA to capture linear, configurational and threshold effects. While it extends existing frameworks rather than introducing new theory, the focus on healthcare organizations in China provides valuable contextual insight.