Technology adaptive capability as a mediating mechanism in the relationship between knowledge-based systems, network capability, and firm performance

Purpose This study examines the impact of transactive memory systems, conceptualized as organizational knowledge-based systems, on network capability and firm performance, with a focus on the mediating role of technology adaptive capability. To achieve this, the study integrates transactive memory systems, relational view, and dynamic capabilities. Design/methodology/approach Data collected from 935 firms operating in Türkiye were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4 to assess the measurement model, test the structural relationships, and evaluate both explanatory power and predictive relevance. Findings The findings indicate that transactive memory systems have a direct positive effect on network capability, technology adaptive capability, and firm performance. Network capability positively influences technology adaptive capability and firm performance, while technology adaptive capability strongly enhances firm performance. Furthermore, network capability and technology adaptive capability both individually and sequentially mediate the relationship between transactive memory systems and firm performance, highlighting their critical role in translating collective knowledge into adaptive capabilities that improve organizational outcomes. Originality/value This study is one of the first to conceptualize transactive memory systems as an organizational knowledge-based system and to test its effect on firm performance through network capability and technology adaptive capability within a multi-level model.