The role of entrepreneurial culture digital orientation and digital capabilities in fostering digital innovation a focus on the financial services sector in South Africa

Abstract

Digitalisation as a ‘game-changing innovation’ has significantly changed the organisational technology innovation landscape and shaped the research agenda. However, the literature shows a gap in the understanding of various aspects relating to digitalisation and innovation, particularly from an African emerging market perspective. The purpose of this article is to examine the relationship between digital capabilities, digital orientation, and digital innovation, while considering the moderating influence of an entrepreneurial organisational culture. The study is focused on firms in the financial services sector (n = 228) in South Africa. Results reveal that digital orientation and digital capabilities positively increase digital innovation. However, the moderating influence of an entrepreneurial organisational culture on this relationship is not significant, which may be attributed to the prevalence of remote work affecting organisational culture. The findings are valuable to managers who look to advance digitalisation in their organisation and enhance the capabilities needed for increased digital innovation.