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Today all domains of life are affected by development of digital technologies. They are seen as shaping the future of transportation as well. This paper aims to identify the development directions of urban air mobility (UAM) applications as driven by sustainability criteria as well as resulting from development of digitalisation, information and communication technologies as well as smart-city related trends.

Sustainability was assumed as key indicator standing behind perceived attractiveness of UAM. For defined sustainability – consisting of economic, environmental and social components, the base sustainability level of UAM was analysed. Then the potential for increase of sustainability was examined as resulted from UAM applications taking advantage from smart-city concept.

Development of digital technologies can support development of UAM as driving its integration within external systems especially transport systems. Deployment of information and communication technologies creates new opportunities for UAM in terms of multitask applications, shared platforms solutions leading to significant increase level of sustainability of UAM.

Results of this paper can be directly used by researchers as well as industry. They indicate both the trends related to development of UAM as integrated component of transport system as well as directly describe new, more sustainable UAM applications contributing to the successful implementation of UAM in urban conditions as well as efficient development of smart-city concepts consolidating UAM valuable functionalities.

Research results cover UAM sustainability definition, description of new, more sustainable UAM applications as well as revolutionary meaning of digital technologies especially in the context of climate neutrality and operational efficiency improvement in four-dimensional urban transport ecosystems.

This study aims to determine whether knowledge creation processes (KCPs) – knowledge exchange and knowledge integration affect digital innovation (DI), including information technology (IT)-enabled capabilities (ITECs) as a mediator and absorptive capacity (AC) as a moderator.

With a survey data set of 390 employees from Pakistani software small- and medium-sized enterprises (SMEs), the current study employed Structural Equation Modeling (SEM) using Smart Partial Least Squares to estimate the structural relationships in the conceptual model.

The results confirm that KCPs – knowledge exchange and knowledge integration positively enhance software SME's DI; ITECs play a partial mediating role in the linkage between KCPs and DI; AC positively moderates the relationship between knowledge integration and ITECs, and ITECs and DI, while AC doesn’t moderate the relationship between knowledge exchange and ITECs. The AC positively moderates the mediating role of ITECs amongst KCPs (knowledge exchange and knowledge integration) and DI, respectively.

This research uniquely integrates the knowledge-based view and dynamic capability theory to present a comprehensive framework that explains the interdependencies between knowledge process, ITECs and AC in driving DI. This approach advances the understanding of how software SMEs can strengthen internal knowledge and IT resources to achieve superior innovation outcomes.