Process innovation in the digital age of business: the role of digital business intensity and knowledge management

This paper aims to examine the dynamic relationship between digital business intensity (DBI) and process innovation through knowledge management. More specifically, the paper investigates the mechanism through which DBI and knowledge management jointly influence process innovation.

The study used a single informant approach of data collection and consistent with prior research, and a random sample of CIOs was selected and invited to participate in the survey resulting in a total 193 usable responses. The analysis and empirical validation of the research model used partial least square.

The results reveal a positive link between DBI and process innovation. This finding presents empirical support for hitherto anecdotal evidence regarding the impact of DBI on process innovation. In particular, the study notes the impactful role of DBI as an input repertoire that facilitates knowledge management with subsequent positive effects on process innovation. Results further surface an accentuating interplay between DBI and knowledge management on process innovation.

The current study advances our understanding of how DBI, a pre-condition to attaining digital business strategy, influences process innovation. Moreover, investigating the consequences of DBI should help offer an initial insight to managers and top management facing the challenge of implementing a successful digital footprint in an increasingly digital business landscape. Furthermore, to the best of the authors’ knowledge, this study is the first to investigate how digitization efforts and knowledge management practices jointly affect process innovation.