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The Effect of Digitalization on Innovation Capabilities through the Lenses of the Knowledge Management Strategy

Sergio Sánchez Ramírez, Fátima Guadamillas Gómez, Isabel González Ramos Mª and Olga Grieva ()
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Sergio Sánchez Ramírez: Department of Business Management, University of Castilla-La Mancha, 45071 Toledo, Spain
Fátima Guadamillas Gómez: Department of Business Management, University of Castilla-La Mancha, 45071 Toledo, Spain
Isabel González Ramos Mª: Department of Business Management, University of Castilla-La Mancha, 45071 Toledo, Spain
Olga Grieva: Department of Business Management, University of Castilla-La Mancha, 45071 Toledo, Spain

Administrative Sciences, 2022, vol. 12, issue 4, 1-18

Abstract: In recent years, the knowledge management approach of the firm has emerged as the central theoretical perspective intended to address the question of adaptation to technological change. As for theoretical and practical implications, we proposed a comprehensive model that provides an integrative outlook on how the relationships between digitalization and knowledge management strategy predetermine the business results of the firm. To this purpose, we empirically analyzed the effect of digitalization on knowledge management, and how this contributes to the improvement of the company’s results in the IT, technology, consulting, and programming sectors by testing the hypotheses through the Partial Least Squares (PLS) approach to Structural Equation Modeling (SEM). A group of 620 companies was targeted for collecting the data by quantitative means of analysis—a questionnaire. The final sample was composed of 78 companies, which corresponds to 12.58% (response rate). The research findings offer an explicit foundation, on which to base future research efforts in evaluating the ways companies should approach digital transformation, strengthen the knowledge management role in this process, develop the digital and innovation capabilities, and finally, ameliorate the effects on business performance, what also represents a certain value for the executives or individuals in the workplace.

Keywords: digitalization; innovation capabilities; knowledge management strategy; business performance; consultancy firms (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2022
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