Impacts Of Strategic Partnership On Technological Transformation On Manufacturing Firms

Abstract

The main objective of this study was to demonstrate the impacts of the creation of strategic alliances on the digital transformation of firms and how it improves their innovative power. Transforming business operations is not an easy task since it is costly hence through strategic partnerships, a firm can acquire the capital and resources required for digital transformation. Due to the advancing business environments, firms are operating in highly competitive markets, and without competitive advantages, firms are easily pushed out of the market. Today, technological needs in the Kingdom of Saudi Arabia are witnessing significant growth. Businesses in the manufacturing sector are looking for opportunities to enhance their digital capabilities leading to production efficiency. In this essence, firms are taking advantage of strategic partnerships to acquire technological capabilities and improve their innovation strength. Firms are aiming at tapping into new technologies, innovations, and potential that strategic partnership brings. The strategic partnership acts as a critical source of knowledge that can be used to improve organizational performance and promote effective operations. Through strategic partnerships, small enterprises can come together to solve these issues. A strategic partnership should be built on trust and collaboration and meeting the contractual agreement to ensure all parties benefit.