<![CDATA[Purpose – This study examines how innovation performance is generated within digital ecosystems by investigating the roles of platform openness, strategic collaboration, knowledge sharing, and absorptive capacity. It focuses on whether platform openness and strategic collaboration directly enhance innovation performance or operate through knowledge sharing, and whether absorptive capacity strengthens these relationships. Design/methodology/approach – A quantitative research design was employed using survey data collected from 218 firms operating within digitally embedded ecosystems across Jakarta, Surabaya, Bandung, and Makassar, Indonesia. Respondents were selected through purposive sampling, and the data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). Finding/Results – The findings indicate that platform openness positively influences innovation performance, with knowledge sharing partially mediating this relationship. Strategic collaboration does not directly influence innovation performance but has a significant indirect effect through knowledge sharing, indicating full mediation. Absorptive capacity does not significantly moderate the proposed relationships. Originality/Value – The study demonstrates that innovation performance in digital ecosystems is driven primarily by knowledge-sharing processes rather than platform openness or strategic collaboration alone. These findings highlight the importance of developing mechanisms that facilitate knowledge exchange to convert ecosystem participation and inter-organizational collaboration into innovation outcomes.]]>
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