Innovation Performance in the Digital Divide Context: Nexus of Digital Infrastructure, Digital Innovation, and E-knowledge

Abstract

Due to speedily changing surroundings and market opportunities, a firm’s digital infrastructure is becoming increasingly significant as it performs a vital role in enhancing its innovation performance and equals viable benefits to the digital divide. The firm’s success is mainly dependent on its novelty and ability to innovate. The pivotal role of the digital infrastructure in increasing innovation performance has been explored in studies relating to innovation. The current research explores how digital infrastructure enhances innovation performance by examining the interplay between digital innovation and the moderating role of e-knowledge. Utilizing quantitative methods, this study gathered data through questionnaires from 383 respondents across various SMEs in China. The results highlight the significant impact of digital infrastructure on improving innovation performance. Additionally, the findings emphasize that digital innovation plays a crucial role in influencing the relationship between digital infrastructure and innovation performance. Furthermore, the study reveals that e-knowledge intervenes in this relationship, acting as a critical moderator. These insights underscore the complex dynamics of digital infrastructure’s role in fostering innovation within SMEs. The study extends an existing pool of knowledge regarding the large-scale influence of digital infrastructure on innovation performance. This shows that digital innovations and e-knowledge deliver through the mechanism of digital infrastructure linkage and contribute to improved innovation performance.