Does human capital mediate the relationship between digital competence and service innovation capability? Evidence from the UAE Service innovation capability during covid-19 pandemic

Abstract

Purpose– The purpose of this study is to investigate the relationship between digital competence and the capability to innovate in the service sector and examine if this relationship is mediated by human capital in the context of COVID-19pandemic. Design/methodology/approach– Using a cross-sectional survey, data were collected from 188 service sector professionals in the United Arab Emirates. Data were analyzed using partial least square-based structural equation modeling. Findings– The findings of partial least square based structural equation modeling analysis indicate that there is a significant positive relationship between digital competence and the capacity to innovate in the service sector, which is partially mediated by human capital. Originality/value– This studycontributes to knowledge by offering an understanding of the relationship between digital competence and innovation capability, especially in uncertain situations. This study also notes the importance ofhumancapitalas astrategic resourcefor innovation. Keywords Humancapital, Service innovation, Digital competence, COVID-19, United Arab Emirates