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

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

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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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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: Heredia, Jorge
Castillo-Vergara, Mauricio
Geldes, Cristian
Flores, Alejandro
Heredia, Walter
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: gold
doi.org
Licence: cc-by-nc-nd
www.elsevier.com/tdm/userlicense/1.0/ (tdm)
www.elsevier.com/legal/tdmrep-license (tdm)
creativecommons.org/licenses/by-nc-nd/4.0/ (vor)
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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How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal

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