Process innovation in the digital age of business: the role of digital business intensity and knowledge management

Abstract

Purpose This paper aims to examine the dynamic relationship between digital business intensity (DBI) and process innovation through knowledge management. More specifically, the paper investigates the mechanism through which DBI and knowledge management jointly influence process innovation. Design/methodology/approach The study used a single informant approach of data collection and consistent with prior research, and a random sample of CIOs was selected and invited to participate in the survey resulting in a total 193 usable responses. The analysis and empirical validation of the research model used partial least square. Findings The results reveal a positive link between DBI and process innovation. This finding presents empirical support for hitherto anecdotal evidence regarding the impact of DBI on process innovation. In particular, the study notes the impactful role of DBI as an input repertoire that facilitates knowledge management with subsequent positive effects on process innovation. Results further surface an accentuating interplay between DBI and knowledge management on process innovation. Originality/value The current study advances our understanding of how DBI, a pre-condition to attaining digital business strategy, influences process innovation. Moreover, investigating the consequences of DBI should help offer an initial insight to managers and top management facing the challenge of implementing a successful digital footprint in an increasingly digital business landscape. Furthermore, to the best of the authors’ knowledge, this study is the first to investigate how digitization efforts and knowledge management practices jointly affect process innovation.

Linkages Between Knowledge Management Process and Corporate Sustainable Performance of Chinese Small and Medium Enterprises: Mediating Role of Frugal Innovation

“… Nwankpa et al (2021) argued that there was no relationship between KA and performance of organizations in their previous study. This research contradicts their findings.…”

“… Shahzad et al (2020) considered KM to be a powerful tool for achieving corporate SD; however, the effect of FI on KMP-CSP relationships has not been studied. Further, Nwankpa et al (2021) emphasize the need for more research on KMP, FI, and sustainable performance.…”

Effect of knowledge management on innovative performance with the mediating effect of unlearning

“…Knowledge management Areed et al (2021) found although all of KM processes play an important role in an innovative organization, the most important one for innovation is to be knowledge sharing. Nwankpa et al (2021) examined the dynamic relationship between digital business intensity (DBI) and processes innovation through KM. In particular, they examined the mechanism by which DBI and KM jointly influence process innovation.…”

Process priority

“…The work of Nwankpa et al (2021) looks at two new concepts which affect process innovation in the digital age: digital business intensity (DBI) – a measure of the level of strategic organizational investments in emergent and innovative digital technologies; and knowledge management – a critical resource for value creation and competitive advantage, the practices of which are closely linked to learning and problem-solving capabilities which in turn deliver innovative values. Knowledge management is considered as a step towards process innovation as it enables idea and knowledge sharing in a creative forum. …”

“…What is key to consider is that process innovation and digitalization do not necessarily converge, meaning that one does not lead to the other. As Nwankpa et al (2021) highlight, digitalization can result in complex transformation and redesign that can actually misalign process innovation outcomes. In fact, the comprehensive reliance on digital technologies in the last decade or so means that what constitutes successful process innovation has actually changed – the scope, features, and boundary conditions of process innovation has altered.…”