Business Strategy in the Digital Age andTechnology-Driven Competitive Advantage

Abstract

Digital transformation is driving substantial change within the business environment, and therefore, it has to be part of business strategy plans. Managers who wish to succeed in a high-tech environment have to understand the extent to which new technologies can affect their business strategic decisions and their business performance. This research attempts to test the relationships among digital capabilities, strategic decisions, and business performance, as well as the moderating effect of the organizational culture on technology adoption for strategic purposes. A mixed-methods research design with quantitative and qualitative methods was adopted. In the quantitative approach, survey questionnaires were distributed to 250 managers and executives from 50 firms. In the qualitative approach, 30 participants were interviewed using semi-structured interviews. Regression and Structural Equation Modeling (SEM) techniques were utilized to analyze the quantitative data, and thematic analysis was utilized for the qualitative data. The descriptive statistics, correlation matrix analysis, and path analysis are some of the techniques in hypothesis testing for this study. The findings indicate that digital capability has a significant effect on strategic decision-making (β= 0.58, t = 6.12, p<0.001) and decision-making has a significant effect on organizational performance (β = 0.62, t=7.05, p<0.001). Organizational culture plays a moderating effect on the relationship between decision-making and organizational performance (= 0.21, t=2.34, p=0.020). In terms of main variables, a high mean value can be discovered, and in terms of the correlation, a high value was revealed for digital capability, decision-making, and organizational performance. The organizations that can establish strategic digital capabilities, agile decision-making ability, and enable organizational cultures will gain the competitive advantage.