Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective

The direct influence of digital platforms on organizational efficiency, financial performance, and strategy attracts the close attention of researchers. The complex mechanisms and pathways of digital platforms on transformation capacity, however, are still unclear at the global and Asia Pacific levels. Drawing on dynamic capability theory, we empirically explore how digital platforms augment organizational innovation performance. We advance the current literature on digital platforms by finding that digital platform capability boosts an organization's dynamism and innovation performance. Furthermore, we extend the literature by revealing that, indirectly, innovation capability and strategic alignment have a substantial influence over digital platform capability and innovation performance. Finally, the study formulates a conceptual model from a dynamic capability perspective, rather than from a resource-based view, and test it using the responses collected from 153 Pakistani manufacturing firms.

Automated summary

The direct impact of digital platforms on organizational efficiency, financial performance, and strategy is receiving significant attention from researchers. However, the complex mechanisms and pathways by which digital platforms enhance transformation capacity are still unclear at the global and Asia Pacific levels. This study empirically explores how digital platforms improve organizational innovation performance using dynamic capability theory. The findings demonstrate that digital platform capability enhances an organization's dynamism and innovation performance. Additionally, innovation capability and strategic alignment indirectly influence digital platform capability and innovation performance. The study presents a conceptual model from a dynamic capability perspective, rather than a resource-based view, and tests it using data from 153 Pakistani manufacturing firms.