Linking knowledge network embedding and digital innovation in gazelle firms: the mediating role of technology opportunity capability and the moderating role of strategic fit

This study investigates how knowledge network embedding (KNE) drives digital innovation in gazelle firms–enterprises characterised by rapid growth but inherent resource constraints. Integrating network theory with the dynamic capabilities perspective, we propose a moderated mediation model wherein technology opportunity capability (comprising sensing and responsiveness) mediates the KNE-innovation relationship, while strategic fit acts as a critical boundary condition. Analyzing survey data from 325 Chinese gazelle firms using partial least squares structural equation modeling (PLS-SEM), we find that KNE significantly enhances digital innovation. Crucially, this effect is partially mediated by both technology sensing and responsiveness capabilities. Furthermore, strategic fit positively moderates the impact of KNE on these dynamic capabilities and strengthens the overall indirect effect on digital innovation. These findings reveal that structural embeddedness alone is insufficient; gazelle firms must cultivate specific dynamic capabilities and ensure strategic congruence with their network partners to fully capitalise on external knowledge. This research advances innovation literature by elucidating the microfoundations and boundary conditions of network-driven digital transformation in high-velocity contexts.