The influence of a digital strategy on the digitalization of new ventures: The mediating effect of digital capabilities and a digital culture

Abstract

A higher degree of digitalization in new ventures' product/ service offerings and their processes can lead to a faster time to market and the ability to rapidly scale. Hence, it has the possibility to significantly impact the performance. To increase the degree of digitalization in new ventures, they can implement a digital strategy. Currently there is no evidence if this measure has a strong impact on the degree of digitalization. We therefore empirically investigate the influence of a digital strategy on the degree of digitalization in new ventures' products/ services and processes. We analyzed 102 new ventures using SEM. Building on the contingency theory, we show that only having a digital strategy is insufficient to achieve a high degree of digitalization. The digitalization of products/services is partially mediated by digital IT capabilities, and the effect of digital strategy on process digitalization is partially mediated by digital IT capabilities and a digital culture.

The drivers of the digital transformation in the healthcare industry: An empirical analysis in Italian hospitals

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The digital transformation of Swiss small and medium-sized enterprises: insights from digital tool adoption

“…These articles reflect the broader pattern of contemporary studies of SME digitalization/digital transformation, focusing on SMEs in specific national industries (Cannas, 2021; Somohano-Rodríguez et al. , 2020) and new ventures (Proksch et al. , 2021), entrepreneurship (Franco et al.…”

“…Such studies of SME digitalization and digital transformation for the most part seek to explain sources of value creation by adopting firm-level explanations that draw on concepts such as dynamic capabilities (Cannas, 2021), digital capability (Scuotto et al. , 2021), digital strategies (Proksch et al. , 2021), innovation strategies/performance (Scuotto et al.…”

“…, 2021; Somohano-Rodríguez et al. , 2020), product and services digitalization (Proksch et al. , 2021) and process digitalization (Proksch et al.…”

“…, 2011; Ettlie and Pavlou, 2006; Kohli and Grover, 2008; Sambamurthy et al. , 2003; Straub and Watson, 2001), and these strategic changes contribute to the need for managers to find new ways of managing and developing employee digital skills (Proksch et al. , 2021; Scuotto et al.…”