From Digital Platform Capabilities to Firm Performance

Abstract

This study aims to explore the influence mechanism of digital platform capabilities (DPC) on firm performance (FP) through a parallel mediation model of firm agility (FA) and network capabilities (NC) in a specific context. Data for this study were collected from 422 randomly selected Saudi firms with survey questionnaires mainly in central, western, and eastern areas of Saudi Arabia and then analyzed using structural equation modeling. The results showed that there are significant relationships of DPC to FA and to NC. No direct and significant relationship was found between PDC and FP. Moreover, FA and NC fully play their mediating roles between DPC and FP. The study contributes to the literature on digitalization, capabilities, and performance by providing new insights from the Saudi context. It also contributes to the practice by providing managerial implications for Saudi managers. Based on empirical evidence, to the best of authors' knowledge, this is the first endeavor to link DPC and FP and provide a new perspective of its influence mechanism.