The place of Innovative Capabilities in Driving ICT Firm Growth: A Knowledge Based View Perspective

Abstract

The rapid expansion of the Information and Communication Technology (ICT) sector has transformed how firms create value, compete, and achieve sustainable growth, making knowledge and innovation critical drivers of organizational performance. Hence, this study examines the role of innovative capabilities in driving the growth of Information and Communication Technology (ICT) firms, framed through the Knowledge-Based View (KBV). The study adopted a desk-based systematic literature review to synthesize relevant research on knowledge-driven innovation and ICT firm growth. Innovative capabilities are conceptualized
as a multidimensional construct comprising knowledge acquisition, knowledge assimilation, knowledge transformation, knowledge exploitation, and technological capability. Based on this review, a conceptual framework is developed to illustrate how these capabilities enable knowledge creation, integration, and application, which collectively underpin firm growth. The study advances theoretically grounded propositions linking each dimension of innovative capabilities to ICT firm growth. It concludes that the effective management of knowledge-based processes and technological resources is central to sustaining growth in ICT firms. Finally, the paper offers theoretical, managerial, and policy implications, providing guidance for future empirical research and strategic decision-making in knowledge-driven innovation contexts.