How to benefit from digital platform capabilities? Examining the role of knowledge bases and organisational routines updating

Abstract

PurposeThis study aims to explore whether digital platform capabilities (integration and reconstruction) affect technological innovation through knowledge bases in the dimensions of breadth and depth and the moderating role of organisational routines updating.Design/methodology/approachHierarchical regression, mediation effect test macro and bootstrap were conducted to empirically analyse two waves of longitudinal survey data from 179 Chinese technology firms.FindingsResults confirmed that knowledge bases (breadth and depth) mediated the effect of digital platform capabilities (integration and reconstruction) on technological innovation and that updating of organisational routines moderated the relationship between knowledge bases and technological innovation.Practical implicationsThese findings offer guidance to firms that aim to achieve technological innovation and advantages, highlighting the importance of digital platform capabilities, knowledge bases and organisational routines updating.Originality/valueAdvancing from existing digital strategies and firm innovation literature, the authors provide a new perspective (knowledge bases) to respond to the information technology (IT) paradox and understand the role of digital platform capabilities in improving technological innovation.

Examining the functionality of digital platform capability in driving B2B firm performance: evidence from emerging market

“…These findings reveal the importance of firms’ digital platform capability in information processing, resource identification and resource allocation, which is consistent with the arguments in the literature (Chen et al , 2022; de Reuver et al , 2017; Mai and Liao, 2022; Wallbach et al , 2019; Wu et al , 2022). That is, digital platform capability allows firms to integrate key shared knowledge and use and reconfigure internal and external resources of firms to better respond to changing market demands (Liu et al , 2022). Moreover, this study also finds that B2B firms building digital platform capability are more likely to promote employee intrapreneurship because the platforms provide employees with good access to resources and opportunity identification.…”

“…On the other hand, digital platform capability improves the efficiency of resource allocation (Liu et al, 2022), enabling B2B firms to efficiently use resources to implement intrapreneurship and then realize the real transformation from intrapreneurship to firm performance (Wan and Liu, 2021). The resources derived from digital platforms flow dynamically and can realize self-renewal, which will change the scale and structure of talents and capital within firms and improve the efficiency of resource allocation (Cenamor et al, 2019).…”

“…Second, we explore the influence mechanism of digital platform capability on firm performance from the RBV, providing a new perspective and deeper insights. Previous literature, from the perspective of dynamic capabilities, focused on how firms can leverage digital platform capability to improve network capabilities (Cenamor et al , 2019) and generate knowledge (Liu et al , 2022) that drives firm performance. It does not provide us with insights into some other possible mechanisms; thus, a new perspective for explaining the mechanisms needs to be provided.…”

“…Finally, the mechanism, digital platform capability influencing firm performance, has not been well explored in the literature. Current studies focus on how digital platform capability drives performance at the macro-strategic level (Cenamor et al , 2019; Jun et al , 2021; Liu et al , 2022). However, focusing too much on business strategy, decision-making and structure and the lack of micro-mechanisms make it difficult to gain insights into other possible mechanisms (Jun et al , 2021).…”

Linking Knowledge Heterogeneity with Project Performance in Digital Project Teams: The Role of Digital Capability and Knowledge Conversion

“…This idea also implies that knowledge heterogeneity may constitute a real "motivating factor" for collective knowledge activities (Quigley et al, 2007). In addition, as knowledge diversification deepens, a variety of innovative combinations are explored with acquired external heterogeneous knowledge, effectively expanding teams' knowledge base (Liu et al, 2022b). Individuals with different knowledge structures can also form new knowledge coupling patterns through knowledge interaction.…”