The present research aims to find how firms achieve innovation performance through innovation networks. This study also explores the mediating role of digital innovation and the moderating role of frugal innovation. Quantitative research design is used for data collection and analysis. To analyze the study’s hypotheses we select the energy firms which aim to attain innovation performance. An indirect effect with Soble test was used to check mediation analysis. The results proved that the innovation performance of energy firms is predicted by innovation networks. Our findings proved that digital innovation acts as a mediator between innovation networks and innovation performance links. Our results also show that frugal innovation strengthens the interplay between innovation networks and innovation performance links. This study highlights how energy firms can stabilize innovation performance through the combined influence of innovation networks, digital innovation and frugal innovation. The managers of energy firms should prefer innovation networks to update their knowledge about the upcoming/latest procedures to achieve innovation performance. Moreover, the role of digital innovation in the current digital world is also very important, and the present study used it as mediator.