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.