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This study aims to investigate how dynamic capabilities, i.e. sensing, learning, integrating and coordinating trigger sustainable innovation performance. It also examines the direct and moderating role of environmental turbulence towards the sustainable innovation performance of small and medium-sized enterprises (SMEs).

The data were collected through a cross-sectional survey of 169 SMEs in Oman and analysed through structural equation modelling using SmartPLS software.

Findings of this study reveal that the sustainable innovation performance of SMEs is greatly influenced by the synergy of learning, integrating and coordinating capabilities. Notably, among these capabilities, coordinating capability emerges as the most important capability for SMEs with a primary emphasis on fostering both human and organizational well-being. However, this research reveals that building dynamic capabilities alone might not be sufficient to address social, ecological and economic sustainability criteria, and SMEs may need to extend their view beyond internal processes and integrate various environmental contingencies into their approaches while focusing on sustainable innovation performance.

This research is useful for business managers while allocating resources in their business efficiently and effectively to achieve sustainable innovation performance. It also highlights that SMEs need to integrate various environmental contingencies into their approaches while focusing on sustainable innovation performance.

To the best of the authors’ knowledge, this study is one of the first to contribute to SME scholarship by mainly investigating the effect of specific four types of dynamic capabilities on sustainable innovation performance in a turbulent environment. This study is likely to contribute to the SMEs addressing sustainability innovation performance and develop capabilities to be sustainable in a turbulent environment.

Digital innovation requires organizations to reconfigure their information technology infrastructure (ITI) to cultivate creativity and implement fast experimentation. This research inquiries into ITI generativity, an emerging concept demoting a critical ITI capability for organizational digital innovation. More specifically, it conceptualizes ITI generativity across two dimensions—namely, systems and applications infrastructure (SAI) generativity and data analytics infrastructure (DAI) generativity—and examines their respective social and technical antecedents and their impact on digital innovation.

This research formulates a theoretical model to investigate the social and technical antecedents along with innovation outcomes of ITI generativity. To test this model and its associated hypotheses, a survey was administered to IT professionals possessing knowledge of their organization's IT architecture and digital innovation performance. The dataset, comprising responses from 140 organizations, was analyzed using the partial least squares technique.

Results reveal that both dimensions of ITI generativity contribute to digital innovation performance, with the effect of DAI generativity being more pronounced. In addition, SAI and DAI generativities are driven by social and technical factors within an organization. More specifically, SAI generativity is positively associated with the usage of a digital application services platform and IT human resources, whereas DAI generativity is positively linked to the usage of a data analytics services platform, data analytics services usability and data analytics human resources.

This research contributes to the literature on digital innovation by introducing ITI generativity as a crucial ITI capability and deciphering its role in digital innovation. It also offers useful insights and guidance for practitioners on how to build ITIs to achieve better digital innovation performance.

Eco-innovations (EIs) are intended to benefit not only the environment but society and firms, but how the relationship is reconciled is unclear, particularly in emerging economies. The advancement of EI has resulted in both positive and negative relationships with sustainability, indicating that the association is more complex than a simple linear one.

Thus, the authors hypothesize that EI has a curvilinear relationship with sustainable business performance (SPB) and that market turbulence (MT) exerts stimulus that reinforces EIs. Accordingly, using the Stata software, the authors apply a moderated regression to a sample size data of 511 manufacturing firms to test the hypothesized assumptions.

Although the results attest to a positive relationship between EI and SBP, the results are synonymous with an inverted “U” shape that renders EIs unprofitable beyond a certain threshold (rebound effect). Additionally, the authors observe that the moderation stimulus of technology turbulence flattens the inverted U-shaped curve.

Built on the foundations of natural-resource-based view (NRBV) and contingency theory, the authors identify the rebound effect point of EI and SBP and the reinforcing stimulus of MT.

Digital transformation provides a new impetus for the development of declining firms. However, there is currently a lack of sufficient research on whether digital transformation is beneficial for the turnaround of declining firms. This paper aims to explore the relationship between digital transformation and the turnaround of declining firms.

Drawing on the theoretical foundations of the resource-based view and dynamic capabilities theory, this research uses a comprehensive dataset of Chinese A-share listed companies from 2010–2021 to explore the influence of digital transformation on the turnaround of declining firms.

The research findings show that digital transformation contributes to the turnaround of declining firms. Mechanism analyses demonstrate that digital transformation enhances dynamic capabilities and attracts more analysts, thereby facilitating the turnaround process. Moreover, the moderation analysis reveals that CEO equity incentives strengthen the positive correlation between digital transformation and the turnaround of declining firms. Heterogeneity analysis indicates that the association between digital transformation and the turnaround of declining firms is particularly significant for firms with low financing constraints and high-tech firms. Moreover, this research reveals that digital transformation can facilitate the turnaround of firms in deep and long-term decline.

This research contributes to the literature on the digital transformation of enterprises and provides important insights for the turnaround of declining firms.

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

In this age of unprecedented technological advancements and rapid digitalization, organizations across the globe are faced with the imperative to evolve or risk obsolescence. It has been witnessed that digital transformation has played a pivotal role in driving organizational change, reshaping the way businesses operate and redefining the relationships they foster with their stakeholders. Supply chain management is no exception as digital transformation can pave the way for sustainable supply chains. This chapter investigates the impact which various digital transformation enablers have in the Indian SMEs and further evaluates the effect of digital transformation on the three dimensions of sustainability envisaged by the triple bottom line approach. Results from the PLS-SEM analysis show that technological, organizational and environmental factors play a significant role in successful digital transformation in SMEs. Digital transformation influences the three sustainability dimensions positively. Findings have important theoretical as well as practical implications for achieving economic, social and environmental sustainability in supply chain.

Given the complexity and increasing interdependence of supply chain networks, a broader perspective beyond a simple binary relationship is needed to analyse the impact of supply chain networks on firms. Based on social network theory, this study aims to explore the relationship between firms’ network position in the supply chain network and digital transformation, as well as the moderating effects of structural holes and network partners’ digitalisation.

This study analyses a sample of Chinese A-share companies listed on the Shanghai and Shenzhen Stock Exchanges for the period 2011–2020 using regression analysis to test hypothesised relationships.

A firm’s centrality in the supply chain network is positively related to its digital transformation, and that the firm’s structural holes and the level of network partners’ digitalisation can both strengthen the positive influence of network centrality on digital transformation. Moreover, the heterogeneity analysis reveals that the positive effect of firms’ network centrality on digital transformation is more pronounced in non-SOEs and upstream firms.

In the pursuit of digital transformation, firms should recognise the significance of their position in the supply chain network and enhance their capability for information and resource acquisition by proactively strengthening their business cooperation with other network members. Moreover, firms should emphasise the value of open networks and their partners in supply chain networks.

This study applies social network theory to investigate the role of a firm’s external supply chain network in its digital transformation, clarifying the context and boundaries in which a firm’s position in the supply chain network influences digital transformation. The results extend the research and theoretical perspective on digital transformation and the consequences of supply chain networks.

The purpose of this study is to empirically investigate the role of dynamic capabilities, specifically the sequence of sensing, seizing, and transforming capabilities, in highly uncertain, emerging technology environments. Focusing on the extended reality industry, the study aims to understand the antecedents to these dynamic capabilities, their sequential nature, and their subsequent impact on innovation and company performance.

Based on a survey of 130 German companies in the extended reality sector, we built a structural equation model that explores the relationship between dynamic capabilities, their antecedents, and their effect on innovation and company performance.

The analysis suggests that sensing capabilities positively influence seizing and transforming capabilities, while seizing directly contributes to transforming. Transforming capabilities are linked to improved innovation performance, which in turn boosts company performance. Organizational ambidexterity, market orientation, and technology orientation are found to be crucial antecedents, accounting for 33.1% of the variance in sensing capabilities.

This research illuminates the interdependence of dynamic capabilities in highly uncertain business environments, such as emerging technology markets. It contributes original insights by elucidating the sequential nature of dynamic capabilities and identifying their vital antecedents. It also enlarges the understanding of how dynamic capabilities impact firms’ innovation performance.

Start-ups require a competitive advantage to integrate sustainable practices and develop organizational capabilities to thrive in dynamic business environments. However, implementation of these practices presents several ethical challenges. This study aims to quantify the influence of organizational capabilities (information technology capabilities and organizational virtues) on start-ups' competitive advantage and readiness to implement environmental, social and governance practices.

This study employed a survey design, and data were collected from 320 start-up founders and/or managers in India. The data were analyzed using Smart PLS 4.0.

The findings suggest that organizational capabilities, including information technology capabilities and organizational virtues, play an important role in enhancing start-ups' competitive advantage and readiness to implement sustainable practices. Dynamic capability mediates these relationships, while entrepreneurial orientation moderates the relationship between organizational virtues and dynamic capability.

This study has significant implications for organizations implementing sustainable business practices through the development and nurturance of organizational virtues and information technology capabilities. The study is also useful for leaders, managers and entrepreneurs in training and development, managing tradeoffs and maintaining important organizational capabilities to establish a balance between people’s concerns, the environment and profits.

Few studies have examined the role of organizational capabilities, sustainable business practices and competitive advantage in the context of start-ups. This study contributes to the literature on sustainable entrepreneurship and organizational capabilities.

This paper aims to explore how the implementation of gap funding instruments such as Proof-of-Concept (PoC) programs can contribute to developing dynamic capabilities in Public Research Organizations (PROs). The research investigates the processes and practices underlying PoC programs that may provide potential foundations for dynamic capabilities (i.e. organizational microfoundations) in PROs operating within a technology transfer setting.

We conducted an exploratory qualitative study through 37 interviews with the employees of PROs involved in the valorization of 155 technologies within 24 PoC programs. We iteratively triangulated those data with secondary sources.

We identified four key processes (i.e. management, selection, monitoring and valorization) and their associated practices that act as organizational microfoundations, enhancing the emergence of dynamic capabilities in PROs. We articulated six propositions to advance theoretical understandings about gap funding instruments and dynamic capabilities in technology transfer settings.

This study extends prior research on gap funding instruments by examining the less explored processes and practices underpinning PoC programs, demonstrating their role in enhancing PROs to foster external engagement and adaptation to fast-changing environments. Furthermore, it contributes to dynamic capabilities literature by unpacking those microfoundations that enable PROs to build sensing, seizing and reconfiguring capabilities when interacting with the external environment.