Innovation performance in digital economy: does digital platform capability, improvisation capability and organizational readiness really matter?

Abstract

PurposeThe purpose of this study is to investigate how digital platforms capability, improvisational capability and organizational readiness directly affect innovation performance. This study also explores how organizational readiness acts as mediator.Design/methodology/approachThis empirical study is based on quantitative research design. Data were collected from 647 managers of small and medium enterprises (SMEs) working in Pakistan. Correlations and regression techniques were used for analyses. The Preacher and Hayes technique, the Sobel test and Bootstrap techniques were used to test mediation effect.FindingsThe results reveal a significant and positive relationship of digital platforms capability, improvisational capability and organizational readiness with innovation performance. Organizational readiness fully mediates the relationships between digital platforms capability and innovation performance link as well as between improvisational capability and innovation performance link.Originality/valueIn the age of digital economy the achievement of innovation performance is very important for SMEs. Businesses are shifting from traditional operational activities to digitalization. This study is imperative to offer new realm of modern technologies by exploring the role of digital platform capability, improvisational capability and organizational readiness for achieving innovation performance in digital economy.

Hegemony of Digital Platforms, Innovation Culture, and E-Commerce Marketing Capabilities: The Innovation Performance Perspective

“…The results showed the positive effect of digital platforms on IP. These outcomes are consistent with previous research, i.e., [15,31].…”

“…Conversely, innovation activities are mainly based on the creation of novel information, which increases from both the internal and external resources of firms [16]. SMEs with structured digital platforms are likely to generate new ideas and formulate and put into practice these innovation activities [15,31], which improves the IP of the firms. As a result, in the current study, the first hypothesis is formulated as follows:…”

“…Digital platforms boost IC to attain IP. The digital platforms facilitate SMEs in building relations with business associates in the development of advanced to innovate its processes and products, which eventually improve IP [15,31]. Therefore, it is argued that digital platforms have a foundational function for IC, which consecutively enhances the IP of SMEs.…”

“…The literature has highlighted several outcomes of digital platforms such as businesses' financial performance [13], network capability [8], customer value creation [14], and improvisation capability and organizational readiness [15]. However, the most exciting outcome of digital platforms in terms of IC and IP has been overlooked so thus far.…”

“…However, the most exciting outcome of digital platforms in terms of IC and IP has been overlooked so thus far. This research looks to measure digital platforms as a favorable asset that enables a firm to achieve great success in terms of their IP [15].…”