Digital innovation and knowledge management involvement: a study of Ghana’s economy

Purpose This study explores how firms in emerging economies engage in digital innovation, leverage internal and external knowledge and achieve their full potential through digital initiatives. It highlights the pivotal role of knowledge management in facilitating technology-driven transformation, specifically within Ghana’s evolving economic landscape. Design/methodology/approach Using a firm knowledge-based view framework, the study employs a qualitative research approach. Semi-structured, in-depth interviews were conducted with 150 managers across eight industries in Ghana. This method captures detailed insights into how firms utilize digital innovation and knowledge management to gain a competitive edge. Findings The research reveals that engagement in digital innovation enhances productivity and communication by effectively utilizing internal and external knowledge. Proactive involvement in innovation is strengthened through mentorship, firm support and external consultation, which bolster technological and knowledge capabilities. The study also underscores the importance of managing the human element – termed “human-aided utilization” – as critical for the execution of digital innovation, emphasizing the need for a balanced integration of technology and human capital. Originality/value This study offers a comprehensive framework for understanding the synergy between digital innovation and knowledge management, particularly in emerging economies. It provides practical insights for managers and decision-makers, emphasizing mentorship, collaboration and effective knowledge utilization as pathways to enhancing digital capacity. The findings are relevant to academics and practitioners seeking to understand knowledge-driven innovation mechanisms and to firms aiming to strengthen their competitiveness in digitally evolving markets.