Resource integration and firm performance through organizational capabilities for digital transformation

The purpose of the current study is to investigate how organizational resources and capabilities affect corporate environmental strategy (CES) and performance based on an extended natural resource-based view (NRBV). In contrast with existing studies showing only partial relationships, such as the relationship between CES and firm performance, the current study investigates comprehensive relationships among core NRBV variables and develops an integrated model by combining a resource-based view (RBV), NRBV and competitive advantage theory. The NRBV, as an extension of Barney’s (1991) RBV, is the first model to advocate the importance of corporate capabilities with natural environmental consideration (Hart, 1995). However, this NRBV does not explicitly address the role of corporate proactive environmental strategy (PES) as a determinant of performance. To differentiate the current study with existing studies focusing on the relationship between PES and performance, the current study investigates the driving forces of PES in the nexus of the PES-performance. Further, it examines performance from both environmental and financial perspectives. As such, the model in this thesis identifies six key variables which include (i) organizational resources, (ii) organizational capabilities, (iii) PES, (iv) competitive advantage, (v) environmental performance, and (vi) financial performance. The current study used model comparison techniques and identified a two-tier structure of factors which are associated with organizational resources and capabilities before investigating causality. For the empirical analysis, the current study employed the structural equation modeling (SEM) using from participants in Korean manufacturing.

With the advent of digital technologies, society is reshaping itself radically. In the last decade, digital technologies have brought fundamental changes in the industry and business environment. The holistic socioeconomic and industrial changes are a result of general-purpose technology aspects of digital transformation, which are rare and have inherent capabilities of self-transformation to bring long-term benefits across the entire global business environment. After the steam engine, electric generator and printing press, the recent development of digital transformation has created an opportunity with extensive sustainable and incremental influence for disruption and renovation. However, the most important difference between digital transformation and the previous general-purpose technologies such as steam engines and electric generators is the pace of technology’s penetration across the globe. To cope with the accelerated speed of global digitization, the digital transformation process should be accepted, adopted and adapted across society and business utilizing a multi-dimensional strategy. This book illustrates a strategic structure that covers Digital Challenges for Industries, Applicability for Digital Transformation, Digital Transformation Framework, People and Organization Structure, Capability Delivery Activities and Life Cycle Benefits. How will businesses embrace digital transformation? How will organizations formulate a digital transformation strategy? How will they invest in digital technologies? To answer these questions, a strategic structure is created which can provide guidelines to businesses to create a framework for digital transformation that includes strategy, process, governance and funding. The exponential growth in data capacity (storage, process and communication) due to rapid digitalization has created infinite opportunities and different dimensions to businesses. Digital platforms have enabled alternative business models by deconstructing the traditional value chains. Agile concepts driven by design thinking have brought innovative perspectives with an environment of boundless disruption. To run a company with sustainability and manage disruptions more consciously, the adoption of a digital platform with an appropriate strategy is the only viable option. Digital transformation (DX) goals and strategies should be in line with a company’s business objectives. The strategic structure explained in the book is a global framework that can be adopted by any profit or nonprofit organization. Like any other transformational process, digital transformation has created structural tension between "old" and "new". In this tension, employees play a large role and their clarity of thought regarding the transformation process is of paramount interest. To overcome this tension, companies need to orient as learning organizations, which will provide opportunities for growth in an ambidextrous environment, embraced with a digital ecosystem. The book explains how the structural tension between old and new can be mitigated by effectively involving all stakeholders in the transformation process.

This study aims to conduct a systematic analysis of the recent investigations on the process of higher education's digital transformation, particularly in developing nations. Publish or Perish v8 Software was used to conduct a systematic literature review. Initially, there were 40 papers selected, but after several search strategies as follows: Determination of search phrases based on research questions; Finding suitable search terms in titles, abstracts, and keywords; Identification of search term synonyms, other spellings, and antonyms, the number of articles to be examined has been decreased to 30. Through descriptive analysis, we try to respond to these two research questions: 1) the process of digital transformation in developing countries' higher education, and 2) what challenges do these developments present? Based on the analysis, the process of digital transformation lies in 4 processes which are planning, organizing, controlling, and evaluating. The process involved was the internal business process and the educational program. While the challenges come from the lack of expertise, lack of facilities, and uncertain economic condition. Several strategies are needed to support the digital transformation in developing countries' higher education.

Leveraging social capital for digital transformation: The role of ambidexterity and familial orientation

Technological advances have reached the power to change the structural features of organizations. For this reason, traditional methods of doing business are now shelved. It has been replaced by digital technologies. Today, we have come to a process where digital technologies are transformed. This process is tantamount to degradation and redesign. For this reason, businesses always have to keep up-to-date with the strategies about how they progress and the models that are the working logic of these strategies. The reason for existence does not change, but the ability to exist does. The aim is to lead a unique life course by the characteristics of the current era for the future. The aim of working with this point of view is to reveal the competencies that businesses should have to develop a strategic and original model suitable for the system structure in a period characterized by deterioration. What features are required to be successful in digital transformation and to continue living? This question is a research question. In the digital transformation process, I have explained this primarily through the mentality to be possessed. I characterized this structurally as the “entrepreneurial spirit” of the company. Afterward, I explained it in terms of having the technological software and hardware that should be owned financially. I tried to convey the next stage by taking action. I explained this with culture transfer through the mentality of the team and teammates who will do the job. In businesses, culture finds an area to spread through leaders. Therefore, in the next step, I touched on the leadership qualities that should be possessed in the digital transformation process and explained the relationship between the digital transformation process and digital business strategy in the final analysis. The general concept of the study was handled within the framework of transferring the basic business characteristics that must be possessed in the way of digital maturity that will enable us to adapt to the era to have a sustainable working logic suitable for digital transformation, and suggestions were made at the end with the discussion part.

Digital Transformation Process and SMEs

PurposeFifty-five per cent of executives at large corporations are extremely concerned about digital startups becoming significant competitors in their market. If the best technology these startups use is available to everyone and larger companies have the budgets to buy more, how can startups cause such a lack of sleep for leaders? Could the reason be the people, as startups generally are run and staffed by Millennials?Design/methodology/approachThe evidence for this comes via three separate research efforts and hundreds of hours of intense interviews with transformation leaders in commercial organizations such as USAA, Southwest Airlines, Citi, Hallmark, MIT and government agencies such as the GSA and the FCC. This research looked at how organizations were changing the way they think, organize, invest and act in pursuit of digital transformation success.FindingsSixteen per cent of larger organizations saw a real return on their digital transformation efforts. Successful digitally transforming organizations could cut OPEX three times more effectively than other organizations. Successful digitally transforming organizations (56 per cent of them) saw sales performance and customer satisfaction rise in unison. Forty-two per cent of these organizations revealed and solved new digital challenges that they had not recognized before; 87 per cent of these organizations saw enhanced growth in demand.Originality/valueTechnology is a huge part of digital transformation. IDC has predicted that in 2017, $1.7tn will be invested on digital transformation technology and processes alone. That is the size of the tenth largest economy in the world.

Interest in corporate environmental responses to climate change has been growing, although most studies use static approaches, which cannot explain the dynamics from accumulated capabilities. In this study, we examine the antecedents and consequences of corporate environmental responses to climate change by investigating dynamic changes in organizational capability by employing a method that integrates dynamic analysis with the resource-based and natural resource-based views. We conduct a longitudinal analysis of carbon management practices, total quality management, operations management, and market performance of 72 firms in Korea. The results demonstrate that corporate responses to climate change are affected more by accumulated organizational learning capability than initial capability. However, the relationship between increased carbon management practices and firm performance is not confirmed. The findings support the resource-based view that the accumulation of organizational capability and performance affects corporate environmental responses to climate change. By contrast, the findings do not provide sufficient evidence for the natural-resource-based view that the responses in turn drive corporate performance improvement.

The Nature of Digital Transformation

In today's dynamic and uncertain environments organisations are facing constant challenges in terms of achieving and maintaining their competitive advantage. These new circumstances are compelling organizations to analyse, integrate, build and reconfigure their resources and organisational capabilities in order to sustain and improve their strategic performance. The purpose of this paper is to investigate the role of organisational capabilities (OC) for the strategic performance of real estate development companies, which are mainly project-based organisations operating in dynamic and uncertain environments. Before empirically exploring the relationship between organisational capabilities and firm performance, a conceptual model for organisational capabilities based on the resource-based-view (RBW) is developed and applied in Real Estate. Based on the developed OC-model it is hypothesised that those certain organisational capabilities, which are embedded in the organization itself and developed through projects and people capabilities, influence the strategic performance of real estate development companies and thus lead to competitive advantage and higher firm performance. As real estate developers operate in highly dynamic and uncertain markets, our empirical model also introduces the control variable environmental uncertainty which, depending on the target market, influences further the choice of strategy. The model is empirically evaluated by using data from real estate development companies in Austria, Germany and Switzerland and tested by applying hierarchical regression analysis.

The paper deals with the digital technologies implementation in the companies’ activity, including transport enterprises. The authors pay attention to the fact that the processes of digitalization and digital transformation are necessary, and they contribute to achieving competitive advantages, reducing operating costs, improving business processes, developing customer services, and meeting customer needs at a higher level. The digital technologies implementation contributes to developing innovative business models and improving the company’s efficiency. The digital transformation of the transport industry leads to improving the service quality (safety, reliability, timing, and availability) and has a positive impact on the economic efficiency as a whole. The authors developed a modified method for measuring the service quality of passenger transport and defined an integral indicator of the quality based on economic and mathematical modeling methods. The approach makes it possible to ensure consistency and complexity of the digitalization and digital transformation processes. The authors distinguished the positive effects of the digital transformation both for manufacturing enterprises and consumers.KeywordsConsumersDigital transformationModelingQualityServiceTransport

In response to emerging financial technology (fintech) that might disrupt the banking industry, several financial institutions are undergoing digital transformation. Banks are increasingly integrating digital strategy into their business planning rather than adding it on. This research aims to identify the determinants that influence digital bank transformation. The research was conducted through a systematic literature review of 364 published papers using PRISMA and bibliometric approaches. This method is commonly used in various fields, including medicine, psychology, social sciences, and more, to provide a comprehensive and impartial summary of the current state of knowledge on a particular subject. The approach used in this systematic literature review method is the PRISMA approach. The results of the literature review show that there is an increasing trend of research related to digital banks from 2015 to 2023, which is in line with the trend of digitalization in the banking industry in both developed and developing countries. The analysis is deepened to see the important factors influencing digital bank transformation. The determinants in the digital bank transformation process include the level of digitalization, application user growth, IT investment, IT committee, cyber security, and ecosystem stocks. The results of this literature review will be a reference for further research related to digital banks, in line with the rapid digital transformation process in banking.

This paper analyses the factors that determine the process of digital transformation of small and medium-sized enterprises (SMEs). To this end, digital transformation is conceptually approached as an innovation process in a company that affects its products and processes. The proposed theoretical framework integrates, from a holistic perspective, three dimensions in the digital transformation process in SMEs: (1) the technological dimension; (2) the human capital dimension; and (3) the organizational/relational dimension. Furthermore, these dimensions manifest themselves at three levels of analysis: (a) the entrepreneur/manager; (b) the firm; and (c) the environment external to the firm. The empirical research presented in this paper is based on a representative survey of SMEs in Spain. The results highlight that both internal skills and external sources of knowledge regarding information and communication technology (ICT) through consultants, suppliers, universities and technological centers constitute critical and complementary drivers for digital innovation in SMEs. The analysis also reveals the importance of an explicit digital transformation strategy in the company and the distribution of responsibilities regarding digitalization beyond the leadership of the entrepreneur/manager. Likewise, the complex use of the Internet by entrepreneurs/managers is observed to favor digital product innovation, whereas their growth ambition stimulates digital process innovation. The results also indicate that the relevance of the aforementioned determinants varies somewhat for microenterprises compared to other SMEs.

Impact of digital transformation on the automotive industry

Digital transformation processes help integrate digital technologies across all the departments of organizations, as well as to adopt digital technology rapidly in an organization. Enhanced organizational innovativeness, efficiency, and competitiveness might be among the outcomes of digital transformation. While digital transformation could be exploitative and explorative in nature, how such a transformation could impact the flexibility and competitiveness of organizations has not been extensively investigated. Against this backdrop, the main objective of this article is to investigate the influence of exploitative as well as explorative digital transformation on organization flexibility and competitiveness. Building on existing theories and literature, a research model is developed that was later tested using a covariance-based structural equation modeling approach applied to the responses of 312 managers from Indian organizations, which are in the process of pursuing digital transformation or have already adopted digital technologies in different departments. This article found that digital transformation helps organizations to become more flexible and it eventually improves the competitiveness of the organizations.