Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument

Digital innovation refers to the creation or adoption value-adding novelty through the incorporation of digital technology. Digital innovation challenges established product-centric companies whose innovation management capabilities are insufficient to manage the reconfiguration and transformation necessary for digital innovation and technology. Recent research has introduced different concepts of for example, digital readiness, digitalization capabilities, and digital innovation readiness. However, these concepts have two shortcomings for use in practice and empirical research: most concepts are theoretical in nature, with limited empirically validated measures. As such, this study takes a dynamic capability view to synthesize prior literature on the organizational antecedents of digital innovation and develops a framework for the micro-foundations of digital innovation capability. By applying a mixed-method approach, existing concepts are extended through qualitative research and then translated into a multi-dimensional measurement instrument. This multi-item operationalization is then subjected to scale validation using quantitative research methods. The results show that a company's digital innovation capability is founded upon seven micro-foundations – digital focus, digital innovation process, digital mindset, digital innovation network, digital technology capability, data management, and overcoming digital innovation resistance – that facilitate established companies in sensing, seizing, and reconfiguring digital innovation.