Abstract
The aim of this research was to explore the conditions under which digital innovation opportunities emerge in small and medium-sized enterprises (SMEs). The research answered the question of what capabilities are required to shape the exploitation of digital innovation, namely market offerings and the digital business process. To address the research question with a quantitative research method, data were collected through survey questionnaires distributed among 280 SMEs operating in the service and manufacturing industries in Finland. The results revealed that among four digital-related capabilities—namely human, collaboration, technical, and innovation capabilities—human, technical, and innovation capabilities contribute to market offerings, while human, collaboration, and technical capabilities contribute to the business process.
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