Specialized complementary assets and disruptive innovation: digital capability and ecosystem embeddedness

Abstract

PurposeWith the widespread penetration of digital technologies, disruptive innovation is not developed by a single firm but is increasingly achieved by an ecosystem. However, limited research has examined the mechanisms involved in achieving disruptive innovation in the context of digitalization and ecosystems. To address this gap, we explore the impact of three dimensions of specialized complementary assets (SCAs) within the innovation ecosystem, human capital SCA (HCSCA), production SCA (PSCA) and marketing SCA (MSCA), on disruptive innovation in core firms through the mediation of digital capability, comprising digital operation capability (DOC) and digital resource collaborative capability (DRCC). Furthermore, innovation ecosystem embeddedness is examined as a moderator between digital capability and disruptive innovation.Design/methodology/approachSurvey data were collected from 234 core firms in China’s high-tech industry. Hierarchical regression, AMOS, and PROCESS tools were used to examine the data.FindingsThe results reveal the following: (1) HCSCA and PSCA positively affect disruptive innovation, while MSCA is negatively correlated with disruptive innovation. (2) Digital capability mediates the relationship between HCSCA and disruptive innovation, as well as PSCA and disruptive innovation. However, it suppresses the negative impact of MSCA on disruptive innovation. (3) Innovation ecosystem embeddedness strengthens the influence of DOC on disruptive innovation, but weakens the influence of DRCC on disruptive innovation.Originality/valueThe findings advance the knowledge of disruptive innovation, SCAs within the innovation ecosystem, digital capability and innovation ecosystem embeddedness. They also provide practical insights into the effective implementation of disruptive innovation.