Digital Capabilities: Bridging the Gap Between Creativity and Performance

Abstract

We investigate the relationship between organizational creativity and performance, mediated by the development of digital capabilities, in the context of digital transformation. Creativity is a crucial resource for the reorganization of the workforce and implementation of strategies, while digital capabilities leverage development, articulation, and effective utilization of organizational resources. We conducted an empirical study in a Brazilian setting based on a survey of 102 organizations in different sectors of the economy. The results indicate that firms that invest in fostering creativity among their workforce perceive superior organizational performance, which is intensified when this creativity serves as an antecedent of digital capabilities. Furthermore, more creative firms that develop digital capabilities can mitigate the negative effects of time since the establishment of the firm and a limitation that may exist concerning the number of employees, making them more dynamic, flexible, and adaptable to the context of digital transformation.