Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument

Digital innovation refers to the creation or adoption value-adding novelty through the incorporation of digital technology. Digital innovation challenges established product-centric companies whose innovation management capabilities are insufficient to manage the reconfiguration and transformation necessary for digital innovation
and technology. Recent research has introduced different concepts of for example, digital readiness, digitalization capabilities, and digital innovation readiness. However, these concepts have two shortcomings for use in practice  and  empirical  research:  most  concepts  are  theoretical  in  nature,  with  limited  empirically  validated measures. As such, this study takes a dynamic capability view to synthesize prior literature on the organizational antecedents  of  digital  innovation  and  develops  a  framework  for  the  micro-foundations  of  digital  innovation
capability. By applying a mixed-method approach, existing concepts are extended through qualitative research and then translated into a multi-dimensional measurement instrument. This multi-item operationalization is then subjected to scale validation using quantitative research methods. The results show that a company's digital innovation capability is founded upon seven micro-foundations  –  digital focus, digital innovation process, digital mindset, digital innovation network, digital technology capability, data management, and overcoming digital innovation  resistance  –  that  facilitate  established  companies  in  sensing,  seizing,  and  reconfiguring  digital innovation.  

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