Digital ecosystems and firm performance in emerging markets: The role of knowledge accessibility

Hazrat Hassan and Dan Cao

Economic Modelling, 2026, vol. 159, issue C

Abstract: This study examines how digitalization enhances firm performance in emerging markets through firms’ knowledge dynamics. Although digital technologies can strengthen organizational capabilities, evidence is limited on when digitalization yields performance gains in resource-constrained settings. Using survey data from 298 multinational enterprises operating in China, the study tests the direct effect of digitalization on firm performance and the moderating roles of knowledge transfer, digital ecosystem maturity, and knowledge-related capabilities. Results indicate a positive digitalization–performance relationship, with significantly stronger effects when knowledge transfer is more effective, suggesting that digital tools create more value when knowledge can be mobilized and applied across units and partners. Moreover, a more mature digital ecosystem and stronger knowledge accessibility and sharing amplify the performance returns from digitalization. Overall, the findings highlight the combined importance of internal knowledge processes and external digital infrastructure for converting digitalization into sustained performance benefits in emerging economies.

Keywords: Digitalization; Firm performance; Multinational enterprises; Knowledge transfer; Digital ecosystem maturity (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:159:y:2026:i:c:s0264999326001045

DOI: 10.1016/j.econmod.2026.107575

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