Linking Digital Capacity to Innovation Performance: the Mediating Role of Absorptive Capacity

Abstract Digital technologies are considered as factors that accelerate the pace of innovation and increase firm’s performance. However, few studies have investigated whether this claim is conditioned by other elements contribute to innovation. Furthermore, firms increasingly rely on external knowledge sources expand their internal base for development innovations. In context, absorptive capacity can be an essential organizational capability embrace adoption digital enhance positive effect This paper builds discussion contribution performance, proposing mediating role in context transformation. It uses evidence from extensive Greek survey 1014 manufacturing analyzes complex relationships underlying transformation The two-fold: (i) it provides a deeper insight into mechanisms through which leverage innovation, (ii) highlights important enhancing effects digitalization indicating not unquestionable asset Accordingly, our results show direct enhanced presence mediator. fact, indirect performance stronger. These findings present policy implications, there need improvement innovation-related aspects business ecosystem efficiently address challenge transformation, such R&D efforts, training, interaction among actors, building communities practice.