Digital “is” Strategy: The Role of Digital Technology Adoption in Strategy Renewal

Zeebroeck, Nicolas van; Kretschmer, Tobias; Bughin, Jacques

doi:10.1109/tem.2021.3079347

Cited by 26 publications

(15 citation statements)

References 45 publications

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“…Technological competencies, digital resources, support from top management, and organizational structure have been shown to influence an organization's decision to adopt digital technologies [6] and [35]. Van Zeebroeck et al [44] observed a strong positive association between the scope of strategy change and the stage of digital technologies adoption, suggesting the existence of a link between technological structure and strategy. Besides, management support is a critical determinant of digital technology adoption.…”

Section: ) Organizational Factors and Digital Technology Adoptionmentioning

confidence: 99%

Drivers of Digital Transformation in SMEs

Omrani

Khachlouf

Maâlaoui

et al. 2024

IEEE Trans. Eng. Manage.

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This study aims to identify and analyze factors determining the adoption of digital technologies in SMEs. Drawing on the technology-organization-environment framework, the study highlights enabling factors from three different contexts and hypothesizes their relationship with digital technology adoption. The data used were collected from 15 346 European Union and non-European Union SMEs to test an ordered logit regression model that highlights the factors associated with an increased level of digital technologies adoption in SMEs. The empirical results show that the technology context (IT infrastructure and digital tools) along with the existing level of innovation are the main drivers that act as stepping stones in digital technology adoption. Corporate regulation, available skills, and financial resources (as organizational variables) also play a significant role in the adoption decision. Unexpectedly, the influence of the environmental context is marginal. The implications of this study are emphasized for theory and practice, laying a foundation for further empirical studies in this field. Managerial relevance statement: This article reviews the empirical research on digital technologies adoption and examines the drivers of such adoption in SMEs. The factors identified provide guidance for practitioners adopting digital technologies in SMEs, by suggesting they assess the readiness of their firms before investing in digital technology. This research helps advance the conversation on digitalization drivers especially by bringing the discussion into the organization boundaries, as our findings highlight the predominance of organizational drivers over the technological and environmental ones. SMEs have to overcome the challenges associated with constructing an IT infrastructure capable of implementing new technologies. Indeed, while striving to adopt new digital technologies (e.g., AI, big data, IoT), many SMEs are still unprepared. Therefore, rather than adopting mimetic behaviors based on external pressure, SMEs that aim for digitalization should first assess their existing technologies, and further develop

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Section: ) Organizational Factors and Digital Technology Adoptionmentioning

confidence: 99%

Drivers of Digital Transformation in SMEs

Omrani

Khachlouf

Maâlaoui

et al. 2024

IEEE Trans. Eng. Manage.

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“…On the contrary. Dual winners benefit more from digitization than from peers because they associate digitization with strategic renewal (Van Zeebroeck et al , 2021). An example of a dual winner is Schneider Electric, a French multinational company that specializes in digital automation and energy management; it has outperformed its peers for many years.…”

Section: The “Flying Wheel” Between Performance and Resiliencementioning

confidence: 99%

Resilience and performance: capturing their synergy for ongoing success

Bughin

2023

JBS

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Purpose Most companies struggle to meet the dual goals of sustaining competitive advantage and ensuring high resilience during crises. Those that do, research tells, adapt their operational practices along the crisis cycle, combining an effective cost approach at the start of a crisis, while quickly relaunching their investment to grow ahead of competition, just when they learn that the crisis is peaking, and not too late, when the crisis is over. This cycle alignment is possibly the crucial, but not the only, factor for success. We update early research to show that companies succeeding in this dual objective also take a proactive strategy approach of capturing the complementarities between both performance and resilience during a period of high turbulence. This complementarity relies on exploiting dynamic capabilities common to both resilience and performance, and on leveraging the resilience process as a foundation for strategic renewal going forward. Design/methodology/approach The research relies on case studies, complemented by an original survey sample, collected just after the peak of the covid-19 pandemic, of 4,000 multinational firms spread across 18 industries termed NACE2, a statistical classification of economic activities in the European Community. This study included 10 countries outside the European Community. The sample collects information on five core enterprise capabilities (agility, innovativeness, active ecosystem play and digital/sustainability maturity, flexible work practices) and uses a variety of quantitative techniques to assess that existence and size of synergies captured by firms. Findings Companies meeting the dual goal of resilience and performance are more than doubling their rate of profit growth relatively to peers, after the peak of the crisis, by leveraging of synergies between performance and resilience. Originality/value The topic is essential for management, given the elevated turbulence. This research confirms that resilience and performance are synergistic and helps make companies using each crisis boost performance forward.

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“…The adoption of digital technology in SMEs is influenced by factors such as organizational readiness, technological infrastructure, and perceived benefits of digital integration. Research has shown that the adoption of new digital technologies can lead to changes in firm strategy, with a strong positive association between the extent of strategy change and the stage of adoption of advanced digital technologies overall [11]. Additionally, the extended technology acceptance model (TAM) framework has been used to investigate the determinants of adoption of digital health apps, with perceived usefulness, attitudes, perceived self-efficacy, and perceived ease of use significantly predicting customers' intention to use digital health apps [12].…”

Section: Digital Technology Adoption In Smesmentioning

confidence: 99%

The Influence of Digital Technology Adoption by Small and Medium Enterprises and Online Consumer Behavior on the Success of E-commerce Platforms in Bandung City

Astuti,

Wibowo,

Juwono

2023

WSJEE

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This study looks into the complex relationships that exist between the use of digital technology by Small and Medium Enterprises (SMEs) in Bandung City, online consumer behavior, and the performance of e-commerce platforms. Through the use of structured surveys and a quantitative approach, information about digital technology integration, online customer behavior patterns, and markers of e-commerce success was gathered from 121 SMEs. The results show that consumer behavior dynamics are diverse, there is a moderate level of acceptance of digital technology, and both characteristics have a considerable beneficial impact on the performance of e-commerce. The key component that emerges is trust, underscoring the significance of building customer confidence in the digital economy. The study adds to our knowledge of the complex interactions that occur between customer engagement and technology adoption, providing SMEs navigating the digital landscape with useful insights.

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Digital “is” Strategy: The Role of Digital Technology Adoption in Strategy Renewal

Cited by 26 publications

References 45 publications

Drivers of Digital Transformation in SMEs

Drivers of Digital Transformation in SMEs

Resilience and performance: capturing their synergy for ongoing success

The Influence of Digital Technology Adoption by Small and Medium Enterprises and Online Consumer Behavior on the Success of E-commerce Platforms in Bandung City

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