Fostering Product Innovation through Digital Transformation and Absorptive Capacity

World Scientific Pub Co Pte Lt
Publication Type:
Journal Article
International Journal of Innovation and Technology Management, 2020, 17, (6), pp. 2050040-2050040
Issue Date:
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This paper analyzes the mediating effect of absorptive capacity (AC) on the relationship between digital transformation from e-business capabilities (EBC) perspective and product innovation (PI). Structural equation modeling (SEM) was carried out with the survey data from a sample of firms that belong mainly to highly digitalized sectors. The results indicate the existence of a full mediation, which means knowledge derived from the digital operation of the business can only result in PI if AC plays an intermediation role. Hence, this finding calls into question the idea that digitalization alone and automatically acts as a PI driver.
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