TY - JOUR
T1 - How do digital capabilities affect firm performance?
T2 - The mediating role of technological capabilities in the “new normal”
AU - Heredia, Jorge
AU - Castillo-Vergara, Mauricio
AU - Geldes, Cristian
AU - Carbajal Gamarra, Felix M.
AU - Flores , Alejandro
AU - Heredia, Walter
N1 - Publisher Copyright:
© 2022 The Author(s)
PY - 2022/4/1
Y1 - 2022/4/1
N2 - This study proposes a model to explain the effect of digital capabilities on firm performance in the “new normal” context from a firm-level perspective. Moreover, it analyzes the mediating role of technological capabilities and the Human Development Index (HDI) in explaining firm performance. Our study used data from the World Bank's Enterprise Surveys 2020, which included 999 firms from 27 countries. We applied the methodological approach, partial least square structural equation modeling (PLS-SEM), to test the hypothetical model. The results show that digital capabilities positively influence firm performance only through technological capabilities. We also empirically demonstrate that digital skills in low HDI economies have a more significant indirect effect on firm performance than in high HDI countries. Finally, some promising avenues for future research and implications for managers and policymakers are suggested based on these findings.
AB - This study proposes a model to explain the effect of digital capabilities on firm performance in the “new normal” context from a firm-level perspective. Moreover, it analyzes the mediating role of technological capabilities and the Human Development Index (HDI) in explaining firm performance. Our study used data from the World Bank's Enterprise Surveys 2020, which included 999 firms from 27 countries. We applied the methodological approach, partial least square structural equation modeling (PLS-SEM), to test the hypothetical model. The results show that digital capabilities positively influence firm performance only through technological capabilities. We also empirically demonstrate that digital skills in low HDI economies have a more significant indirect effect on firm performance than in high HDI countries. Finally, some promising avenues for future research and implications for managers and policymakers are suggested based on these findings.
KW - COVID-19
KW - Digital capabilities
KW - Firm performance
KW - human development index (HDI)
KW - PLS-SEM
KW - Technological capabilities
UR - http://www.scopus.com/inward/record.url?scp=85125521340&partnerID=8YFLogxK
U2 - 10.1016/j.jik.2022.100171
DO - 10.1016/j.jik.2022.100171
M3 - Article in a journal
VL - 7
JO - Journal of Innovation and Knowledge
JF - Journal of Innovation and Knowledge
SN - 2530-7614
IS - 2
M1 - 100171
ER -