Abstract:
The advances and the exponential change in technology impact the business strategy of all organisations, from established enterprises to newly formed digital start-ups. These digital technologies are reforming, shaping, and changing the way in which organisations think about their business strategy and IT strategy as they converge. This convergence increases the need for the organisation to understand the relationship between a Digital Business Strategy (DBS) across the elements of scope, scale, speed and value creation and the Dynamic Capabilities (DC) of sensing changes in the environment, seizing any identified opportunities, and transforming resources and the organisation.
A quantitative research study was employed, and a multivariate analysis was conducted on 121 respondents. This study investigated the relationship between the elements of a DBS and the DC that leads to a sustained competitive advantage (SCA).
The findings in this research indicated a statistically significant positive correlation between the components of a DBS and a SCA. A regression analysis indicated that the activities an organisation should focus on and pursue namely: firstly, the scope of a DBS, which predicts the DC of seizing, indicating that focusing on seizing the opportunities that emerged from digital technologies will lead to a SCA; secondly,
the three dimensions of speed in a DBS, the speed at which products are launched, the speed of management decision making, and the speed of network formation and adaptation. These findings provide organisations with insights on how to successfully leverage a DBS for a SCA.
