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The interplay between firm innovation, digital capabilities and HR skills and practices: The moderating role of GVC participation

Author

Listed:
  • Giotopoulos, Ioannis
  • Gkypali, Areti
  • Tsakanikas, Aggelos

Abstract

In this study, we argue that the coordination of resources and people is conducive to building digital capabilities that transform innovation processes within firms, especially in a global value chain (GVC). GVC participation expands as well as obscures a firm’s boundaries. Therefore, GVC member-firms’ orchestration needs are greater, and as such, the interlinkages between digital capabilities, HR skills and practices, and innovation outcomes are stronger. Using a sample of 1014 Greek manufacturing firms, we estimate a system of equations to investigate the moderating role of GVC participation in the examined interlinkages. Empirical results confirm that developing HR skills and practices matters in building digital capabilities that consequently shape firms’ innovation outcomes. Digital capabilities have a stronger orchestrating role for GVC member-firms aiming to introduce product innovations, and for nonparticipants, the process of building digital capabilities benefits more from implementing a bundle of HR practices.

Suggested Citation

  • Giotopoulos, Ioannis & Gkypali, Areti & Tsakanikas, Aggelos, 2026. "The interplay between firm innovation, digital capabilities and HR skills and practices: The moderating role of GVC participation," Journal of Business Research, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:jbrese:v:207:y:2026:i:c:s0148296326000652
    DOI: 10.1016/j.jbusres.2026.116031
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    Keywords

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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