The Impact of Human Capital, Capabilities, and Innovation on Success: A Study of Greek SMEs

Abstract

Greek SMEs extensively seek to enhance firm innovativeness and competitive advantage, but these efforts have yet to achieve optimal effectiveness. This study explores the relationships between human capital, structural capital, relational capital, and digital business competence, examining their influence on competitive advantage and firm innovativeness. The study also identifies the mediating role of digital business model innovation within these relationships. Using SmartPLS 3.0 to analyze 167 responses covering 42 items, the findings reveal that human, structural, and relational capital have a direct influence on digital business model innovation. Furthermore, digital business capabilities exhibit a moderating effect, while digital business model innovation acts as a mediator. However, the results indicate that structural and relational capital, moderated by digital business capabilities, have an insignificant impact on firm innovativeness and competitive advantage.