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While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and their adoption of innovative business models. Additionally, the study investigates how the prior experiences of entrepreneurial failure may influence or moderate these relationships.

To address these research objectives, the study draws upon data obtained from the Flash Eurobarometer 486 survey, a comprehensive dataset that explores the challenges faced by 13,197 European MSMEs as they navigate the complexities of growth, the integration of sustainable business models and the incorporation of digital technologies. To test the proposed hypotheses, the research employs multivariate logistic regression analysis.

Digital capabilities are found to be positively associated with business model innovation, while integration into global value chains is linked to a higher likelihood of implementing new business models. Interestingly, entrepreneurial failure did not significantly influence the relationship between digital capabilities and the adoption of new business models. In contrast, entrepreneurial failure significantly moderated the impact of global value chain inclusion on business model innovation, particularly in MSMEs with a history of failure.

This article provides practical guidance to entrepreneurs and companies interested in enhancing their digital strategies and engagement in global value chains, considering the entrepreneurs' business histories.

Research has shown that business model innovation can facilitate most ventures to innovate and remain competitive, yet there has been limited work on how digital leadership capabilities influence business model innovation. Building on the dynamic capabilities view, we address this gap by linking digital leadership capabilities with business model innovation via managerial decision-making through provision of grants received by new ventures.

The study is cross-sectional research. Data have been collected utilizing purposive sampling from 313 founding members of new ventures in high-velocity markets, i.e. from Pakistan. SPSS has been used to conduct the moderated mediation analysis.

Digital leadership capabilities foster the business model innovation of the new ventures because they enable new ventures to capitalize on digital technologies and create new ways of generating value for the customers and themselves. Moreover, managerial decision-making mediates digital leadership capabilities and business model innovation relationship, whereas, grants moderate the indirect positive effect of digital leadership capabilities on business model innovation via managerial decision-making. The study generates initial evidence on the impact of digital leadership capabilities on business model innovation via managerial decision-making for new ventures. We advance knowledge on new ventures’ business model innovation by deep-diving into dynamic capabilities view and emphasizing digital leadership capabilities as a significant driver for business model innovation.

With the help of dynamic capabilities theory, this study analyzes how new ventures make use of digital leadership capabilities to promote business model innovation.

COVID-19 has made businesses increasingly dependent on technology to be competitive and efficient. Small and medium enterprises (SME) digitalisation and innovation research are widespread. SME digital transformation and innovation require government policies, initiatives and assistance. How the government can help SMEs achieve these goals is unclear. So, this paper aims to investigate how government policy may assist Vietnamese SMEs to boost innovation performance and digital transformation.

The study will take a quantitative approach, with questionnaires distributed to 659 respondents from SMEs in Vietnam through snowball and convenience sampling procedures. The structural equational modelling method is used for data analysis.

The study indicated that government policies supported Vietnamese SMEs’ innovation and information technology (IT) capabilities. Government policy assistance also boosted IT capabilities and innovation. Furthermore, mediation effects show that digital transformation fully mediates the relationship between innovativeness and firm performance, whereas IT capabilities partially mediate this relationship.

Further research that replicates the findings and analyses contextual heterogeneities between nations is advised because Vietnam’s pandemic setting was both similar and dissimilar.

The study demonstrated government-company interactions through supportive policy. It investigated whether SMEs seeking digital transformation and innovativeness might gain competitive benefits by implementing effective knowledge management and enhancing their IT capabilities.

A resource-based theoretical framework is extended to study how innovation, public policy and digital transformation for SMEs interact. The study confirms government policy strongly influences enterprises’ digital development. Specifically, the new mediating effects of IT capabilities and digital transformation are explored and provide new insights into the existing literature.

Digital technology is crucial to improving a firm’s core competitiveness. However, the existing research on the relationship therein shows heterogeneity. Using digital technology can enhance competitive advantage, which is crucial for enterprises and scholars. Thus, based on the digital technology affordance theory, this study explores the relationship between digital technology affordance and digital competitive advantage.

Survey data were collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and structural equation modelling were used to test the hypotheses. Specifically, we discuss the mediating role of digital business capability and the moderating role of organisational legitimacy.

Editability, association and visibility positively affect digital competitive advantage, and their coordination is strong. Further, they can help enterprises gain a competitive advantage through the mediating role of digital business capability (digital strategy, digital integration and regulation). However, the influence effect and action path differ per in different dimensions. Organisational legitimacy positively moderates the mediating effect of digital integration and regulation, and there is a moderated mediating effect. However, the moderating effect on the mediating effect of digital strategy is not significant.

Existing studies neglect the relationship between the coordination of digital technology functions and digital competitive advantage. This study provides a new theoretical explanation for an in-depth understanding of these issues. These findings promote the development of innovation theory and provide valuable insights for guiding the application of digital technology in enterprises.

This study aims to clarify why and when digital business strategy (DBS) helps manufacturing firms generate value co-creation (VC) with different stakeholders in the digital context of China. This study considers external network capability (ENC) and internal network capability (INC) as mediation mechanism, and strategic flexibility (SF) as theoretical boundary.

Questionnaires were used and filled out by executives from manufacturing firms. The manufacturing samples from 289 different fields in China were used for hypothesis testing, and the structural equation model was the main analytical method.

This study found that DBS of manufacturing enterprises has a positive impact on VC. Specifically, DBS affects firm-partner VC and firm-consumer VC through the indirect positive effect of ENC, and affects firm-employee VC through INV. The positive effects of ENC on firm-partner VC and firm-consumer VC, as well as INC on firm-employee VC, are weak at high (or low) SF, and are strongest at moderate SF.

This study provides manufacturing firms with practical insights into why and when they can implement DBS to generate VC, with a particular emphasis on the weighted role of SF.

This study spotlights gaps in the literature on why and when manufacturing firms can reap the benefits of DBS, focusing on one important business outcome – VC. The authors clarify the mediating role of differences in ENC and INC, as well as the inverted U-shaped moderating role of SF.

The digital platform (DP) develops through a network capability that combines technological infrastructure and resources to provide goods or services. This article investigates how institutions influence the development of the DP entrepreneurship ecosystem (EE) in a developing economy context.

An exploratory qualitative approach based on interviews with 33 DP business executives in Nigeria was the chosen research method. The interview method took the form of face-to-face, telephone and zoom video meetings, depending on the respective preferences of the participants. The research philosophy is based on interpretivism. Hence, the collected data were analyzed thematically and interpreted to make sense of the business executives' perspectives about the DP landscape as well as its institutional enablers and barriers.

The findings reveal institutional elements that are either too underdeveloped or weak to nurture an effective DP system resulting in high cost of doing business. A key cultural challenge is obtaining an honest workforce and managers. Also, there is lack of effective policies, weak regulation, multiple taxation and foreign competition, which affects local digital firms. Although cultural diversity has several merits, differences in cultural values and languages create marketing and promotion challenges. Moreover, the low level of digital literacy between Generation Z, Millennials and others, such as Baby Boomers and Generation X, poses a significant challenge concerning customer segmentation.

Research on digital technologies, the complexity of platform architectures and institutional logic has attracted interest in recent years. This article explored the institutional logic influencing the development of DP ecosystem (providing knowledge about EE in a developing world context). Despite the institutional challenges, there are multiple opportunities for Nigerian DP sector to flourish in the fast-growing economy.

The value of this article is related to how micro-, meso- and macro-institutional forces combine to support or become barriers to the development of the DP ecosystem, especially in developing economies where digitalization is creeping into every business sector and society.

In this study, the researchers explored the roles played by digital technologies and digital innovation (DI) in Pakistan's Information, Communication and Technology (ICT) companies' firm performance (FP).

The researchers used a quantitative study to gather cross-sectional data from employees working in Pakistan's ICT companies. The authors based this study's findings on 396 valid samples.

The structural equation modeling (SEM) findings underline that digital capability (DC), digital orientation (DO) and digital transformation (DT) have positive and significant effects on DI and FP. Moreover, there is a positive and significant relationship between DI and FP. Finally, DI mediates DC's, DO's and DT's associations with FP.

By committing to embracing new digital technologies and updating existing DCs to become innovation leaders and to improve FP, the findings will help sectors to take advantage of developing digital technologies and the trend toward digitalization. The results are also valuable for policymakers when considering if SMEs should be provided with more money for the digital up-skilling of their employees. Finally, this study's findings enrich the depth of literature about companies' use of digital technologies.

This study's empirical findings confirm the roles played by DC, DO and DT in improving DI and FP in a developing country such as Pakistan.

Driven by the dual-carbon target and the widespread digital transformation, leveraging digital technology (DT) to facilitate sustainable, green and high-quality development in heavy-polluting industries has emerged as a pivotal and timely research focus. However, existing studies diverge in their perspectives on whether DT’s impact on green innovation is synergistic or leads to a crowding-out effect. In pursuit of optimizing the synergy between DT and green innovation, this paper aims to investigate the mechanisms that can be harnessed to render DT a more constructive force in advancing green innovation.

Drawing from the theoretical framework of resource orchestration, the authors offer a comprehensive elucidation of how DT intricately influences the green innovation efficiency of enterprises. Given the intricate interplay within the synergistic relationship between DT and green innovation, the authors use the fuzzy-set qualitative comparative analysis method to explore diverse configurations of antecedent conditions leading to optimal solutions. This approach transcends conventional linear thinking to provide a more nuanced understanding of the complex dynamics involved.

The findings reveal that antecedent configurations fostering high green innovation efficiency actually differ across various stages. First, there are three distinct configuration patterns that can enhance the green technology research and development (R&D) efficiency of enterprises, namely, digitally driven resource integration (RI), digitally driven resource synergy (RSy) and high resource orchestration capability. Then, the authors also identify three configuration patterns that can bolster the high green achievement transfer efficiency of enterprises, including a digitally optimized resource portfolio, digitally driven RSy and efficient RI. The findings not only contribute to advancing the resource orchestration theory in the digital ecosystem but also provide empirical evidence and practical insights to support the sustainable development of green innovation.

The findings can offer valuable insights for enterprise managers, providing decision-making guidance on effectively harnessing the innovation-driven value of internal and external resources through resource restructuring, bundling and leveraging, whether with or without the support of DT.

The research findings contribute to heavy-polluting enterprises addressing the paradoxical tensions between digital transformation and resource constraints under environmental regulatory pressures. It aims to facilitate the simultaneous achievement of environmental and commercial success by enhancing their green innovation capabilities, ultimately leading to sustainability across profit and the environment.

Compared with previous literature, this research introduces a distinctive theoretical perspective, the resource orchestration view, to shed light on the paradoxical relationship on resource-occupancy between DT application and green innovation. It unveils the “black box” of how digitalization impacts green innovation efficiency from a more dynamic resource-based perspective. While most studies regard green innovation activities as a whole, this study delves into the impact of digitalization on green innovation within the distinct realms of green technology R&D and green achievement transfer, taking into account a two-stage value chain perspective. Finally, in contrast to previous literature that predominantly analyzes influence mechanisms through linear impact, the authors use configuration analysis to intricately unravel the complex influences arising from various combinatorial relationships of digitalization and resource orchestration behaviors on green innovation efficiency.

This study aims to explore the conversion of metaverse marketing (MVM) into strategic agility among SMEs based on dynamic capabilities (DC) and dynamic management capabilities (DMC) theories. This paper discusses how constructs such as immersive marketing technologies (IMT), customer immersion (CI) and managerial capabilities (MC) play critical role in the transformation of MVM into strategic agility (SA).

A theoretical framework based on DC and DMC theories, and a comprehensive review of the literature on MVM, IMT, CI, MC and SA, was developed in order to theoretically investigate the relationships between MVM and SA. In this theoretical framework, MVM is the independent variable, while the dependent variable is SA. Also, IMT and CI both mediate the association between MVM and SA, while MC moderate the association between MVM and SA in one stream; and CI and SA in another stream.

This research study develops a theoretical framework that recommends nine set of important research propositions in MVM. An extensive literature review was conducted to examine the theoretical framework on the effect of MVM on SA. The proposed theoretical framework suggests that brand community development and communication, experiential marketing and personalisation in MVM, once accessed through IMT (i.e. VR, AR, MR) and CI (i.e. customer engagement, customer absorption-customer acquisition and assimilation of knowledge, presence) can produce significant SA through customer experience management, value co-creation and process innovation.

This current study develops a theoretical framework that theorise the relationship between MVM and SA rooted in literature on MVM and SA, and also based on DC and DMC perspective. The moderating effect of MC on the relationship between IMT and SA on one hand, and CI and SA on the other, provides support to IMT and CI as mediators in the transformation of MVM into SA. This study also provides insight into SME adoption of MVM and how it generates SA. Lastly, the current study contributes to the body of knowledge on MVM, IMT, CI, MC and SA.