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Purpose

The purpose of this study is to explore how SRDI (an abbreviation for “Specialized,” “Refined,” “Distinctive” and “Innovative”) small and medium-sized enterprises (SMEs) enhance digital innovation performance (DIP) via digital orientation (DO) from a knowledge creation perspective, by examining the mediating roles of knowledge exchange (KE) and knowledge integration (KI) and the moderating effect of technological turbulence (TT).

Design/methodology/approach

This study conducted a questionnaire survey of 244 SRDI SMEs in China. The collected data were analyzed using SPSS and AMOS.

Findings

This study found that DO has a positive impact on DIP; KE and KI play a mediating role in the relationship between DO and DIP; and TT positively moderates the relationship between the knowledge creation process (KE and KI) and DIP.

Originality/value

This study makes several important contributions. First, it enriches the literature on DIP antecedents by focusing on SRDI SMEs, an important yet under explored context. Second, it introduces knowledge creation theory into DIP research, thereby extending its theoretical perspective in the digital intelligence era. Third, it opens the black box between DO and DIP by uncovering the underlying knowledge creation mechanisms. Fourth, it further clarifies the boundary conditions under which the knowledge creation process influences DIP.

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