Purpose: The aim of this study is to investigate whether knowledge management (KM) contributes to the development of strategic orientation and to enhance innovativeness, and whether these three factors contribute to improve business performance.Design/methodology/approach: A sample of 241 Brazilian companies was surveyed, using Web‐based questionnaires with 54 questions, using ten‐point scales to measure the degree of agreement on each item of each construct. Structural equation modeling techniques were applied for model assessment and analysis of the relationships among constructs. Exploratory factor analysis, confirmatory factor analysis, and path analysis using the technique of structural equation modeling were applied to the data.Findings: Effective KM contributes positively to strategic orientation. Although there is no significant direct effect of KM on innovativeness, the relationship is significant when mediated by strategic orientation. Similarly, effective KM has no direct effect on business performance, but this relationship becomes statistically significant when mediated by strategic orientation and innovativeness.Research limitations/implications: The findings indicate that KM permeates all relationships among the constructs, corroborating the argument that knowledge is an essential organizational resource that leverages all value‐creating activities. The results indicate that both KM and innovativeness produce significant impacts on performance when they are aligned with a strategic orientation that enables the organization to anticipate and respond to changing market conditions.Originality/value: There is a substantial body of research on several types of relationships involving KM, strategic orientation, innovativeness and performance. This study offers an original contribution by analyzing all of those constructs simultaneously, using established scales so that comparative studies are possible.

In today's digital age, many managers need to find new ways to manage collaborations where complementary partners co-create digital solutions. Collaborations with partners are at the center of digital projects, but managing these collaborations is challenging. This article objective is to investigate how research and development collaborations with scientific and business partners contribute to digital transformation. This has been achieved through an empirical investigation of three Brazilian manufacturers that are already on their journey toward digitalization. The research design involves multiple case studies and qualitative analysis, through data collection by interviews and questionnaires with participants from the tactical and strategic level followed by content analysis as well as nonparticipant observations. The findings indicate that the companies are at the early stage of building a digital ecosystem. However, they have already secured benefits from pursuing open innovation practices in the form of competitive advantage in operational processes. The results indicate that business success depends more on how (disruptive) technologies are developed and used by engaged people to add value to the enterprise, rather than simply adopting new technologies by themselves. Manufacturers need to act now to reshape their mindset, operational processes, and business models, respectively, enabling the understanding that: 1) organizational ecosystems are becoming more open and collaborative; 2) the value of data capture and analysis can be developed and used for data-driven learning, preventive and predictive capabilities, supporting decision-making; 3) customers' preferences need to be internalized to deliver customized experiences.

The article identifies how collaborations with startups can influence digital innovation in Brazilian manufactures. The theoretical basis relates the concepts R&D collaboration, open innovation and Industry 4.0. A qualitative multiple case study was carried out with four startups incubated at C2i, International Innovation Center, located in the south of Brazil. The results indicate that the sources of knowledge and innovation from partnerships with companies, universities, government development agency, and C2i incubator, characterise the intense use of open innovation practices by startups. It has also been found that: the complexity of the startups innovation ecosystem is seen as a strategic asset; and the nature of these collaborations is characterised by informal management, coupled with a still low maturity stage of startups. This study contributes to evidence of the nature, dynamics and consequences of startups collaborations in the development of digitalisation in Brazil, and to demonstrate the Industry 4.0 difficulties and challenges.

This paper presents the main messages of a South American expert roundtable (ERT) on the unintended side effects (unseens) of digital transformation. The input of the ERT comprised 39 propositions from 20 experts representing 11 different perspectives. The two-day ERT discussed the main drivers and challenges as well as vulnerabilities or unseens and provided suggestions for: (i) the mechanisms underlying major unseens; (ii) understanding possible ways in which rebound effects of digital transformation may become the subject of overarching research in three main categories of impact: development factors, society, and individuals; and (iii) a set of potential action domains for transdisciplinary follow-up processes, including a case study in Brazil. A content analysis of the propositions and related mechanisms provided insights in the genesis of unseens by identifying 15 interrelated causal mechanisms related to critical issues/concerns. Additionally, a cluster analysis (CLA) was applied to structure the challenges and critical developments in South America. The discussion elaborated the genesis, dynamics, and impacts of (groups of) unseens such as the digital divide (that affects most countries that are not included in the development of digital business, management, production, etc. tools) or the challenge of restructuring small- and medium-sized enterprises (whose service is digitally substituted by digital devices). We identify specific issues and effects (for most South American countries) such as lack of governmental structure, challenging geographical structures (e.g., inclusion in high-performance transmission power), or the digital readiness of (wide parts) of society. One scientific contribution of the paper is related to the presented methodology that provides insights into the phenomena, the causal chains underlying “wanted/positive” and “unwanted/negative” effects, and the processes and mechanisms of societal changes caused by digitalization.

Purpose: This study identified the key factors that can be used to assess manufacturers' readiness for DT.Design/methodology/approach: Non-participating observations and semi-structured interviews were applied to five large manufacturers in Brazil and four in the UK, using content analysis.Findings: The paper (1) identifies and discusses the aspects that companies need to consider for digital readiness; (2) presents a model developed in building blocks for DT readiness, which goes beyond the technical dimension; (3) argues that few firms fully understand DT’s meaning, opportunities and risks, and they should invest in strategic and socio-managerial preparation; (4) emphasizes government support as crucial to assist the business digital journey and (5) highlights that DT is a human transformation and technology users are the primary agents of this change.Research limitations/implications: Although the literature proposes models regarding the levels of digital maturity, the present study investigates which organizational aspects need to be taken into account to be ready for digital change. The present study identified digital resources concerning the digital context (for instance, agile, collaborative, absorptive and data analytics capabilities) and provided an integrated view that encompasses also external aspects of the environment that need to be taken into consideration when performing the analysis, a contribution to strategic management literature in the sense that it goes beyond studies that usually explore only internal aspects of the firm that cannot properly explain how digitalization can be achieved by an organization.Practical implications: Technologies do not cause changes without people being able to extract and understand the value of the use and impact of these technologies. Business innovation demands engagement, attitudes and connections between people. If the factories do not mobilize and train internal and external collaborators to realize the value of digital technologies, the promised gains of DT will hardly be realized. Preparing people is one of the most challenging aspects of business digitalization. The proposed framework offers a multidimensional view of DT, providing insights into strategic aspects and the roles and mindset of employees in organizations on their digital journey, characterized by constant learning. DT is a work of change management, done with, for and by people. The article also helps companies identify critical factors to evaluate before operationalizing digital innovation practices.Social implications: This study also contributes to policymakers, such as government and industry consortia, in establishing relevant factors when policies are being drawn. Analyzing the factors for a sector, in general, might inform the investment priority in actions that might foster DT for that sector. Given the recurring turmoils in the global economic environment, broad policies need to be established by the government for business digitalization, which can boost the performance of the productive sector.Originality/value: This study provides valuable insights consolidated into a DT readiness model. The article helps companies identify critical factors to evaluate before operationalizing digital practices. It compares the differences and commonalities among factories in an underdeveloped country versus an industrialized nation.