Digital business transformation forces firms to develop foundational capabilities to remain competitive. In their article, Dominik Wielgos, Christian Homburg (both University of Mannheim) and Christina Kuehnl (BWI, University of Stuttgart) provides insights on the critical questions:
What is a firm’s Digital Business Capability (DBC), how can it be measured, and when does it pay off?.
The authors use a mixed-method approach across two studies to show that DBC contributes to firm and customer performance. Importantly, DBC increasingly drives firm performance after reaching a critical level of internal dynamism (i.e., U-shaped moderation). By contrast, DBC particularly pays off at an optimal level of external dynamism (i.e., inverse U-shaped moderation). Finally, DBC is more valuable for business-to-consumer than for business-to-business firms.
The article is published in the special issue “Innovating in the Digital Economy: Leveraging Technology to Create Value for Consumers and Firms” in the Journal of the Academy of Marketing Science (JAMS). JAMS is one of the most prestigious outlets among marketing scholars worldwide and is listed among FT's top 50 Journals.
Click here to read the article.
Click here to read the press release from the University of Stuttgart.