Digital transformation and competitive performance in the mining industry: the role of dynamic capabilities

Abstract

The mining industry, which is usually slow to change and moderate in innovation, faces impending prospects of significant disruption due to a wave of Digital Transformation (big data analysis, internet of things (IoT), and artificial intelligence). When Digital Transformation (DT) is implemented correctly, the impact on Competitive Performance is significant. Despite this, empirical research on the impact of DT on Competitive Performance and other influencing factors has been limited. The overall objective of this research was to study the role of Dynamic Capabilities on the relationship between DT and Competitive Performance in the mining industry. A quantitative study was designed, and survey data were collected from 212 employees in the mining industry. Through Hierarchical Multiple Regression analysis, results showed that there is a positive relationship between DT and Competitive Performance. The research also showed a strong impact of DT on Dynamic Capabilities. While results could not support mediation effects of Dynamic Capabilities, the results show that Dynamic Capabilities (when compared to DT) have more impact on Competitive Performance. The findings suggest that Dynamic Capabilities are important for mining organisations given the prospects of disruptions. Business leaders need to find a balance between pursuing DT while strengthening Dynamic Capabilities.