IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v159y2026ics0264999326001045.html

Digital ecosystems and firm performance in emerging markets: The role of knowledge accessibility

Author

Listed:
  • Hassan, Hazrat
  • Cao, Dan

Abstract

This study examines how digitalization enhances firm performance in emerging markets through firms’ knowledge dynamics. Although digital technologies can strengthen organizational capabilities, evidence is limited on when digitalization yields performance gains in resource-constrained settings. Using survey data from 298 multinational enterprises operating in China, the study tests the direct effect of digitalization on firm performance and the moderating roles of knowledge transfer, digital ecosystem maturity, and knowledge-related capabilities. Results indicate a positive digitalization–performance relationship, with significantly stronger effects when knowledge transfer is more effective, suggesting that digital tools create more value when knowledge can be mobilized and applied across units and partners. Moreover, a more mature digital ecosystem and stronger knowledge accessibility and sharing amplify the performance returns from digitalization. Overall, the findings highlight the combined importance of internal knowledge processes and external digital infrastructure for converting digitalization into sustained performance benefits in emerging economies.

Suggested Citation

  • Hassan, Hazrat & Cao, Dan, 2026. "Digital ecosystems and firm performance in emerging markets: The role of knowledge accessibility," Economic Modelling, Elsevier, vol. 159(C).
  • Handle: RePEc:eee:ecmode:v:159:y:2026:i:c:s0264999326001045
    DOI: 10.1016/j.econmod.2026.107575
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999326001045
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.econmod.2026.107575?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Tindara Abbate & Anna Codini & Barbara Aquilani & Demetris Vrontis, 2022. "From Knowledge Ecosystems to Capabilities Ecosystems: When Open Innovation Digital Platforms Lead to Value Co-creation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 290-304, March.
    2. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    3. Nick Drydakis, 2024. "Artificial intelligence capital and employment prospects," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 901-919.
    4. Raj Echambadi & James D. Hess, 2007. "Mean-Centering Does Not Alleviate Collinearity Problems in Moderated Multiple Regression Models," Marketing Science, INFORMS, vol. 26(3), pages 438-445, 05-06.
    5. Cuthbertson, Richard W. & Furseth, Peder Inge, 2022. "Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation," Journal of Business Research, Elsevier, vol. 152(C), pages 168-176.
    6. L. Felipe Monteiro & Niklas Arvidsson & Julian Birkinshaw, 2008. "Knowledge Flows Within Multinational Corporations: Explaining Subsidiary Isolation and Its Performance Implications," Organization Science, INFORMS, vol. 19(1), pages 90-107, February.
    7. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    8. Munjal, Surender & Bhasin, Niti & Nandrajog, Divya & Kundu, Sumit, 2022. "Examining the evolution of emerging market multinational enterprises’ competitive advantages: Evidence from India," Journal of Business Research, Elsevier, vol. 145(C), pages 732-744.
    9. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    10. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2022. "Lateral knowledge transfer and foreign affiliate performance: The importance of affiliate strategic roles," Economic Modelling, Elsevier, vol. 116(C).
    11. Kejing Chen & Qiaoshuang Meng & Yutao Sun & Qingqing Wan, 2024. "How does industrial policy experimentation influence innovation performance? A case of Made in China 2025," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    12. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.
    13. Cai, Hechang & Wang, Zilong & Ji, Yi & Xu, Liuyang, 2024. "Digitalization and innovation: How does the digital economy drive technology transfer in China?," Economic Modelling, Elsevier, vol. 136(C).
    14. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    15. Greene, William & Harris, Mark N. & Knott, Rachel & Rice, Nigel, 2023. "Reporting heterogeneity in modeling self-assessed survey outcomes," Economic Modelling, Elsevier, vol. 124(C).
    16. Yang, Yefei & Yee, Rachel W.Y., 2022. "The effect of process digitalization initiative on firm performance: A dynamic capability development perspective," International Journal of Production Economics, Elsevier, vol. 254(C).
    17. Ruonan Cheng & Chun-Yu Ho & Shaoqing Huang, 2023. "Digitalization and firm performance: channels and heterogeneities," Applied Economics Letters, Taylor & Francis Journals, vol. 30(17), pages 2401-2406, October.
    18. Maribel Guerrero & Francisco Liñán & F. Rafael Cáceres-Carrasco, 2021. "The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies," Small Business Economics, Springer, vol. 57(4), pages 1733-1759, December.
    19. Yang, Senmiao & Wang, Jianda & Dong, Kangyin & Jiang, Qingzhe, 2023. "A path towards China's energy justice: How does digital technology innovation bring about a just revolution?," Energy Economics, Elsevier, vol. 127(PA).
    20. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    21. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    22. Muhammad Saleem Sumbal & Adeel Tariq & Awais Ahmad & Roberto Cerchione & Armando Papa, 2025. "Managing knowledge and sustainability in resource constrained disaster environments," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2599-2613, April.
    23. Wang, Na & Wang, Yonggui, 2024. "Knowledge transfer from reverse innovation in global value chains: A signaling theory perspective," Economic Modelling, Elsevier, vol. 141(C).
    24. Chunyan Li & Mohsin Shafait, 2025. "Assessing the impact of network embeddedness on SMEs innovation performance through resource bricolage: a mediated-moderated model," Operations Management Research, Springer, vol. 18(1), pages 72-88, March.
    25. Bhandari, Krishna Raj & Zámborský, Peter & Ranta, Mikko & Salo, Jari, 2023. "Digitalization, internationalization, and firm performance: A resource-orchestration perspective on new OLI advantages," International Business Review, Elsevier, vol. 32(4).
    26. Yadong Luo & Rosalie L Tung, 2018. "A general theory of springboard MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 129-152, February.
    27. Abdullah Murrar & Bara Asfour & Veronica Paz, 2024. "Banking sector and economic growth in the digital transformation era: insights from maximum likelihood and Bayesian structural equation modeling," Asian Journal of Economics and Banking, Emerald Group Publishing Limited, vol. 8(3), pages 335-353, May.
    28. Han, Wucheng & Li, Xiaoyu & Zhu, Weijie & Lu, Ruoyu & Zu, Xu, 2024. "Knowledge digitization and high-tech firm performance: A moderated mediation model incorporating business model innovation and entrepreneurial orientation," Technology in Society, Elsevier, vol. 77(C).
    29. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    30. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    31. Hien Thu Tran & Enrico Santarelli & William X. Wei, 2022. "Open innovation knowledge management in transition to market economy: integrating dynamic capability and institutional theory," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(7), pages 575-603, October.
    32. Yang, Yong & Wu, Yan, 2023. "The digital economy, entry mode strategies, and the profitability of foreign subsidiaries: A global view," Economic Modelling, Elsevier, vol. 127(C).
    33. Wu, Yan & Niu, Peiyuan & Wu, Yunqiao, 2025. "Does the digital sector affiliation matter for the productivity of multinational firms?," Economic Modelling, Elsevier, vol. 144(C).
    34. Bernardo Henrique Leso & Marcelo Nogueira Cortimiglia & Antonio Ghezzi & Vinicius Minatogawa, 2024. "Exploring digital transformation capability via a blended perspective of dynamic capabilities and digital maturity: a pattern matching approach," Review of Managerial Science, Springer, vol. 18(4), pages 1149-1187, April.
    35. Kerstin Hötte & Angelos Theodorakopoulos & Pantelis Koutroumpis, 2024. "Automation and taxation," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 945-969.
    36. Andreia de Bem Machado & Silvana Secinaro & Davide Calandra & Federico Lanzalonga, 2022. "Knowledge management and digital transformation for Industry 4.0: a structured literature review," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 20(2), pages 320-338, March.
    37. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    38. Rui Torres de Oliveira & Simona Gentile-Lüdecke & Sandra Figueira, 2022. "Barriers to innovation and innovation performance: the mediating role of external knowledge search in emerging economies," Small Business Economics, Springer, vol. 58(4), pages 1953-1974, April.
    39. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    40. Ahmed, Adeel & Bhatti, Sabeen Hussain & Gölgeci, Ismail & Arslan, Ahmad, 2022. "Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Yan & Niu, Peiyuan & Wu, Yunqiao, 2025. "Does the digital sector affiliation matter for the productivity of multinational firms?," Economic Modelling, Elsevier, vol. 144(C).
    2. Wu, Yan & Yang, Yong, 2026. "Knowledge creation and foreign subsidiary performance: Evidence on mitigating high labour costs," Journal of Asian Economics, Elsevier, vol. 104(C).
    3. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    4. Jiang, Yahan & Yu, Wenlei, 2026. "Digital transformation and cross-regional investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 108(C).
    5. Shao, Yanmin & Xu, Kunliang & Shan, Yuan George, 2024. "Leveraging corporate digitalization for green technology innovation: The mediating role of resource endowments," Technovation, Elsevier, vol. 133(C).
    6. Li, Wencan & Wang, Xiao, 2026. "Investigating how digital technology network embeddedness affects small and medium-sized enterprise growth: A dynamic capabilities perspective," Technological Forecasting and Social Change, Elsevier, vol. 223(C).
    7. Piyush Ranjan & Preeti Narwal, 2025. "Investigating Organizational Unlearning and Agility in Digital Transformation for improved Innovation Performance in an Emerging Economy: Moderating Roles of Digital Business Intensity and Firm Sizes," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(3), pages 601-623, September.
    8. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    9. Yang, Yong & Wang, Yonggui & Wang, Linlin & Wu, Yan, 2024. "Host country household spending and foreign subsidiary performance: The role of local knowledge, entry mode strategies, and the digital economy," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).
    10. Huiwen Su & Feiying Cai & Yunting Huang, 2022. "Institutional constraints and exporting of emerging‐market firms: The moderating role of innovation capabilities and digital transformation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2641-2656, October.
    11. Wu, Yan & Yu, Huan, 2026. "Digital trade barriers and firm digitalisation: The role of innovation quality," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 1672-1684.
    12. Linlin Fan & Jinghua Ou & Gongyan Yang & Shujie Yao, 2024. "Digitalization and outward foreign direct investment of Chinese listed firms," Review of International Economics, Wiley Blackwell, vol. 32(2), pages 604-634, May.
    13. Francisco Gustavo Bautista Carrillo & Daniel Arias-Aranda, 2025. "Technological Adoption Sequences and Sustainable Innovation Performance: A Longitudinal Analysis of Optimal Pathways," Sustainability, MDPI, vol. 17(13), pages 1-24, June.
    14. Fang, Xia & Zhang, Yun & Lv, Shuqing & Tan, Longxin, 2025. "Does digital finance spatial correlation drive income convergence?," Economic Modelling, Elsevier, vol. 153(C).
    15. Yi Liang & Jung-Mo Koo & Min-Jae Lee, 2024. "The Interplay of Environmental Dynamism, Digitalization Capability, Green Entrepreneurial Orientation, and Sustainable Performance," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    16. Changling Sun & Ziang Lin & Zixuan Dai & Shidi Dong & Zixi Zhang, 2025. "Pay for digitalization: The relationship between digital transformation and payment disparity," Economics and Politics, Wiley Blackwell, vol. 37(1), pages 59-86, March.
    17. Cong Cheng & Zefeng Miao, 2025. "Leveraging digital connectivity for innovation performance: a fsQCA study on Chinese high-tech manufacturing firms," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    18. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    19. Theodosiou, Marios & Katsikea, Evangelia & Alarape, Oluyomi & Rethore, Christophe & Makri, Katerina, 2026. "Enhancing agility and international performance through learning processes and digitalization capabilities in Nigerian SMEs," Journal of Business Research, Elsevier, vol. 211(C).
    20. Patrick Held & Tim Heubeck & Reinhard Meckl, 2026. "Boosting SMEs’ digital transformation: the role of dynamic capabilities in cultivating digital leadership and digital culture," Review of Managerial Science, Springer, vol. 20(5), pages 1687-1715, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:159:y:2026:i:c:s0264999326001045. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.