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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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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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“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
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“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
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Metadata
- 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
- Venue
- Journal of Innovation & Knowledge
- Publisher
- Elsevier BV
- Published
- 2022-04
- Volume
- 7
- Issue
- 2
- Pages
- 100171
- ISSN
- 2444-569X (ISSN-L)
- 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
- 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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