Empowering Radical Innovation: How Digital Technologies Drive Knowledge Transfer and Co‐Creation in Innovation Ecosystems

ABSTRACT This study investigates the impact of digital technologies on firm radical innovation and explores the mediating mechanisms of knowledge transfer and knowledge co‐creation. Utilizing a sample of 152 high‐technology entrepreneurial firms, we present compelling evidence that digital technologies positively influence the radical innovation of these firms. Furthermore, our analysis reveals that knowledge transfer and knowledge co‐creation serve as critical mediating mechanisms, elucidating how digital technologies affect firm radical innovation. These findings significantly contribute to the existing literature by bridging the gap between research on technology adoption, knowledge management, and firm radical innovation. By highlighting the role of digital technologies and the underlying knowledge processes in firm radical innovation, this study enhances the understanding of the dynamics involved in fostering innovation within entrepreneurial contexts.