In the present digital era, it is crucial for organizations to focus on cultural elements that are essential to achieving and sustaining competitive advantage. Hence, this research seeks to explore the effect of Risk Management Culture, Digital Culture, and Learning Culture on Competitive Advantage through the mediation of Digital Innovation. The research adopted a cross-sectional design and a quantitative methodology. Employees working in organizations based in Saudi Arabia served as the target population. A questionnaire was developed to collect responses from employees using purposive sampling, yielding a usable response rate of 54.17%. Current research has employed PLS-SEM as the analytical technique and Smart PLS 4 as the tool for data analysis. The findings revealed that Risk Management Culture, Digital Culture, and Learning Culture have a significant effect on Digital Innovation. Similarly, Digital Innovation showed a positive association with Competitive Advantage. The outcomes also confirmed the mediating effect of Digital Innovation. The present study influences the current knowledge by emphasizing the mediating role of Digital Innovation in the proposed framework. These results provide effective understandings for policymakers and scholars in guiding future research.