Reconceptualizing digital culture as a higher-order capability for digital transformation: insights from innovation ecosystem actors

Purpose This study explores how digital culture is defined, understood and enacted within innovation ecosystems, positioning it as a higher-order organizational capability that enables digital transformation. We argue that digital culture extends beyond mere technological adoption and depends on key characteristics such as collaboration, servant leadership and inclusivity to flourish. Design/methodology/approach The research was conducted in two phases. First, a systematic literature review examined how existing scholarship conceptualizes digital culture. Guided by Schein’s organizational culture model, we classified digital culture characteristics across three layers, underlying assumptions, espoused values and artefacts, to develop an initial model of digital culture. In the second phase, 33 semi-structured interviews were conducted with key actors within a Brazilian innovation ecosystem. Thematic analysis was applied to examine how digital culture is perceived, experienced and practiced in this context. Findings The study reveals that digital culture is characterized by shared assumptions about openness to change, values emphasizing collaboration and inclusion, and artefacts such as agile practices and digital collaboration tools. The resulting framework integrates conceptual and lived perspectives, highlighting how digital culture operates as a higher-order enabler of innovation ecosystem functioning. Originality/value This study advances theory by combining organizational capability theory with Schein’s culture model to position digital culture as a higher-order capability. By integrating literature-based and empirical insights, we offer a comprehensive framework for understanding digital culture. Practically, the study provides actionable guidance for leaders aiming to cultivate inclusive, collaborative and servant-led approaches to digital transformation in complex, networked organizational settings.