How and when does digital innovation capabilities affect firm performance.

Abstract

In the fast-paced, constantly-changing modern world, gaining and maintaining logistics excellence demands more effort. The main objective of the study is to examine when and how digital innovation capabilities influence firm performance. The quantitative research approach was adopted. Also, explanatory and descriptive research design was employed. Cross-sectional survey strategy was utilized with questionnaire serving as the instrument of data collection. The study adopted convenience sampling and purposive sampling techniques in sampling firms and respondents respectively. The quantitative data collected was analyzed descriptively and inferentially using statistical package for social sciences (SPSS latest version). The findings of the study indicated that digital innovation capabilities are very essential in firm performance. Also, the findings of the study indicated supply chain visibility mediates the relationship between digital innovation capabilities and firm performance. The findings of the study indicated that supply chain responsiveness does not moderate the relationship between digital innovation capabilities and firm performance. The study recommends that firms firm develop dynamic capabilities such as supply chain responsiveness to maximize the benefits of digital innovation capabilities in influencing firm performance.