The effects of digital business strategy on the collaboration performance of companies: the moderating effect of digitally enabled performance measurement

Abstract

PurposeDigital transformation shapes industries and influences the forms of collaboration between companies. This study aims to investigate digital business strategy as a key to facilitating collaboration beyond organizational boundaries.Design/methodology/approachThe study focuses on the connection between digital business strategy and collaboration performance. The authors identify five types of digital business strategy elements based on the literature: development, objectives, resources, management capabilities, and digital leadership. The authors then studied the implications of these elements for collaboration performance using a survey. The study’s empirical data were collected from manufacturing and service companies, and 202 valid responses were received. The implications of the research elements were tested through regression analysis, which included the moderating effects of digitally enabled performance measurement.FindingsThe theoretical research framework identifies digital business strategy as a key determinant of collaboration performance, thus advancing the understanding of how companies can utilize digital business strategies and achieve enhanced collaboration performance. The results also show that the effect of digital business strategy on collaboration performance may be moderated by digitally enabled performance management.Practical implicationsThe results suggest that management capabilities associated with digital strategy are a crucial element in positively influencing collaboration performance. Further, digital strategy-related resources can be better managed with digitally enabled performance measurement system, which is reflected in improved collaborative performance. Thus, companies should invest in management capabilities and connect their digital business strategies and performance measurement systems to develop collaboration in digital transformation.Originality/valueThe study is among the first to translate an empirical understanding of the digital transformation of small and medium-sized companies into a conceptual framework of a digital business strategy.

Why and when does digital business strategy help manufacturers generate value co-creation with different stakeholders?

“…First, manufacturing firms operating in the digital age are embedded in more complex ecosystems and are interdependent with various stakeholders such as partners, customers, and employees. However, although existing studies have shown the importance of DBS on the firm's innovation (Nwankpa et al, 2022;Nyl en and Holmstr€ om, 2015) and performance (Chi et al, 2018;Holopainen et al, 2023;Ukko et al, 2019;Wang et al, 2020), these research has primarily focused on the firm's internal processes and its outcomes, ignoring the presence of a wider range of stakeholders. Therefore, limiting the scope of research to innovation ability or financial performance is detrimental to understanding the complexity of interactions between actors in ecosystems in the digital era.…”

“…This study aims to contribute theoretically to the academic discourse in three ways. Firstly, this research extends beyond the predominant focus on the internal processes and outcomes of manufacturing firms by embracing a comprehensive perspective that includes a diverse array of stakeholders (Holopainen et al, 2023;Nwankpa et al, 2022). By emphasizing the co-creation of value between companies and their stakeholders, the study moves beyond a unilateral concentration on the manufacturing firm itself.…”

“…, 2022; Nylén and Holmström, 2015) and performance (Chi et al. , 2018; Holopainen et al. , 2023; Ukko et al.…”

“…This study aims to contribute theoretically to the academic discourse in three ways. Firstly, this research extends beyond the predominant focus on the internal processes and outcomes of manufacturing firms by embracing a comprehensive perspective that includes a diverse array of stakeholders (Holopainen et al. , 2023; Nwankpa et al.…”

Impact of Digital Transformation and AI through Fostering Digital Leadership Excellence: A Focus on Sustainable Organizational Performance

“…Wang et al, 2024). The discrepancy in the innovative actions of digital leaders will absolutely add to governance issues within the AI community, as well as unethical conduct (Holopainen et al, 2024). The primary objective of this study is to provide a platform that a how leadership can leverage the digital world and AI technologies to support the sustainable revolution and effectively handle risks.…”