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Cited by 414Digital Economy and TransformationInnovation and Knowledge ManagementDigital Innovation in Industries

How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal

Open access
Heredia, Jorge, Castillo-Vergara, Mauricio, Geldes, Cristian, Carbajal Gamarra, Felix M., Flores, Alejandro, Heredia, Walter·2022·Journal of Innovation & Knowledge
DOI 10.1016/j.jik.2022.100171
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Abstract

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.

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Crossref · 10.1016/j.jik.2022.100171

Cites

96 of 98 references verified0 citation errors · 0 not checkable

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  • Studies have linked digital capabilities with performance gains across private companies in areas such as improved efficiency, customer satisfaction, and profitability.

    “While studies have linked digital capabilities with performance gains across private companies in areas such as improved efficiency, customer satisfaction, and profitability (Benitez et al. 2022; Heredia et al. 2022), public administration scholarship lacks clear understanding of how such capabilities shape outcomes specifically within governmental contexts (de Magalh ã es Santos 2023).”

    From How Do Digital Capabilities Affect Organizational Performance in the Public Sector? The Mediating Role of the Organizational Agility (2024) · cites this paper as Heredia et al. 2022

    The Discussion (page not available) says digital capabilities improve firm performance through technological capabilities, and the Introduction links digital tools to more efficient processes. But the paper’s firm-performance indicators are changes in demand and sales; our copy does not establish gains in customer satisfaction or profitability. (LLM, conf=0.87)

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  • GIT acceptance plays a significant role in making firms sustainable.

    “We conclude that GIT acceptance plays a significant role in making firms sustainable (Heredia et al., 2022).”

    From Sustainable entrepreneurship and knowledge management: Role of green information technology in building sustainable entrepreneurial ecosystems (2025) · cites this paper as Heredia et al., 2022

    The Conclusions discuss digital capabilities and firm performance, not GIT acceptance or whether it makes firms sustainable. A green IT adoption study appears in the References, but our copy does not report the claimed relationship. Searched for GIT acceptance, green IT, and firm sustainability. (LLM, conf=0.77)

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Cites

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Research works printed but not linked: 2

  1. Bell, M., & Pavitt, K. (1995). THE DEVELOPMENT OF TECHNOLOGICAL CAPABILITIES. I.U. HAQUE, TRADE, TECHNOLOGY AND INTERNATIONAL COMPETITIVENESS EDI DEVELOPMENT STUDIES: 22 (pp. 69-101). Washington, DC: The World Bank.
  2. Chin, W. W. (2010). Handbook of partial least squares. In V. E. Vinzi, W. W. Chin, J. Henseler, H. Wang (Eds.), HANDBOOK OF PARTIAL LEAST SQUARE: CONCEPTS, METHODS AND APPLICATIONS IN MARKETING AND RELATED FIELDS (pp. 655-690). Berling: Springer.

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Authors
Heredia, J., Castillo-Vergara, M., Geldes, C., Carbajal Gamarra, F. M., Flores, A., & Heredia, W.
Affiliations
  • University of the Pacific (PE)
  • Universidad del Desarrollo (CL)
Corresponding author
Heredia, Jorge
ORCID
Venue
Journal of Innovation & Knowledge
Publisher
Elsevier BV
Published
2022-04
Volume
7
Issue
2
Pages
100171
ISSN
2444-569X (ISSN-L)
DOI
10.1016/j.jik.2022.100171
OpenAlex
W4214861923
Cited by
414
References
97
Citations by year
2026: 80 · 2025: 96 · 2024: 119 · 2023: 88 · 2022: 31
FWCI
62.37
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Innovation & Knowledge (publishedVersion, cc-by-nc-nd)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Econstor (Econstor) (submittedVersion, cc-by-nc-nd)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Economy and Transformation
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
Keywords
digital capabilities, firm performance, technological capabilities, Human Development Index, digital skills, mediating effect, new normal, post-pandemic economy, firm-level analysis

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