Digital technology adoption, innovation and performance: the roles of innovation capability and culture

Abstract

The findings contribute theoretically by clarifying how digital technology adoption (DTA) influences both strategic and operational outcomes through innovation capability (IC), while also emphasizing the critical contextual role of innovation culture (InnoC). By integrating both mediating (IC) and moderating (InnoC) mechanisms into a unified conceptual model grounded in four theoretical foundations, Resource-Based View, Dynamic Capabilities Theory, Open Innovation Theory, and Contingency Theory, this study offers a comprehensive explanation of how internal capabilities and organizational culture shape the impact of digital transformation on innovation and performance. The model provides a valuable theoretical basis for future empirical validation and offers strategic implications for SMEs in developing economies seeking to leverage digital technologies under resource constraints.