Abstract
In contrast to the digital transformation of the incumbents, born-digital SMEs embrace digital logic in organisation’s design, processes and governance from the very start. So far, the scholars have focused on the digital transformation of the incumbents, thus, little is known about how dynamic capabilities, collaborative innovation and firm performance interact in the context of born-digital SMEs, which has no legacy of the incumbent firm. Therefore, the research question is how dynamic capabilities and collaborative innovation affect the performance of born-digital SMEs. We aim to investigate the impact of dynamic capabilities of born-digital SMEs on their performance when collaborative innovations mediate it. The empirical research was based on 268 complete viable responses from born-digital SMEs in the US, Sweden and Lithuania. The study results show that the effect of dynamic capabilities on born-digital SMEs performance is more significant when mediated by collaborative innovations. Furthermore, the study highlights that although the impact of dynamic capabilities on partnership networks and relational collaboration is significant, only relational collaboration significantly affects the performance of born-digital SMEs.
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