This study aims to navigate key determinants and investigate pathways through which firm capabilities and digital innovation drive firm performance via the mediating role of management practices and the moderating role of social capital.
This study extracted relevant articles from the Scopus database, and a meta-analytic structural equation modelling (MASEM) approach was used to analyse data.
Management practices were identified as a significant mediator determining the relationship between digital innovation and firm performance. Furthermore, green innovation, one of the components of social capital, was the leading determinant that drives the relationship between firm capabilities and firm performance.
This study has adopted two independent variables (i.e. firm capabilities and digital innovation), one mediator (i.e. management practices) and one moderator (i.e. social capital), using a meta-analysis approach. Researchers and scholars might consider including other variables and approaches for future studies.
This study offers actionable guidance for managers and practitioners seeking to augment firm performance through investment in digital innovation and strengthen their existing management practices.
This study contributes to the body of knowledge on the relationships among firm capabilities and digital innovation, driving firm performance through the mediating role of management practices and the moderating role of social capital. This study has developed an analytical model, and theoretical perspectives were presented by integrating three renowned theories, i.e. the resource-based view (RBV) theory, the dynamic capabilities theory and the institutional theory.
