Dynamic capabilities and digital innovation: pathways to competitive advantage through responsible innovation

Abstract

In a dynamic global context towards digitalization, and with increasing social demands, companies face the challenge of remaining competitive. This study empirically validates the relationship between dynamic capabilities (digital orientation, digital capability, and willingness to change), responsible innovation, and competitiveness by integrating them into a competitive and sustainable model. This model allows companies to identify innovation strategies for sustainability that are aligned with the concept of innovability. Guided by the dynamic capabilities theory for achieving a sustainable competitive advantage, this study applies a structural equation model using data from 216 private Ecuadorian technology companies. The results validate responsible innovation as a mediator between digital innovation and competitiveness and confirms dynamic capabilities as key facilitators of digital and responsible innovation and their joint impact on competitiveness. This research contributes to business practice highlighting the need for companies to redefine their digital innovation management strategies aligned with the Sustainable Development Goals (SDGs).

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