The Role of Dynamic Capabilities in Digital Transformation: Reconstructing Competitive Advantage in Uncertain Environments
DOI:
https://doi.org/10.61173/16k1y696Keywords:
Digital Transformation (DT), Dynamic Capabilities (DC), Competitive Advantage, Organizational Resilience, Uncertainty ManagementAbstract
In today’s rapidly changing business environment, digital transformation (DT) has changed from a strategic choice to a necessity for survival. However, many enterprises are still trying to transform their technology investment into sustainable performance improvement. This study explores how dynamic capabilities (DC) can help organizations cope with continuous digital change and maintain competitive advantage in an uncertain environment. From the perspective of DC, we have constructed a conceptual framework to link the process of perception, grasp and reconstruction with the results of digital transformation. Recent research and evidence at the enterprise level show that the success of digital programs depends not only on the adoption of advanced technologies, but also on how management processes integrate these dynamic capabilities into daily practice. This paper believes that these capabilities can enhance the resilience of organizations, enhance strategic response ability and ensure long-term competitiveness, so as to deepen the integration between dynamic capabilities and digital transformation literature.
References
[1] Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https:// doi.org/10.1016/j.lrp.2018.12.001
[2] Ellström, D., Berg, E., & Josefsson, C. (2022). Dynamic capabilities for digital transformation. Journal of Strategy and Management, 15(2), 272–290. https://www.emerald.com/insight/ content/doi/10.1108/JSMA-04-2021-0089/full/html
[3] Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097- 0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
[4] Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319– 1350. https://doi.org/10.1002/smj.640
[5] Al-Moaid, N. A., & Almarhdi, S. G. (2024). Developing dynamic capabilities for successful digital transformation projects: The mediating role of change management. Journal Dean&Francis ISSN 2959-6130 of Innovation and Entrepreneurship, 13(85). https://doi. org/10.1186/s13731-024-00446-9
[6] Saeedikiya, M., & Hock-Doepgen, M. (2024). Toward a dynamic capability perspective of digital transformation in SMEs. Technological Forecasting and Social Change, 177, 121487. https://doi.org/10.1016/j.techfore.2022.121487
[7] Franco, S., & Hock-Doepgen, M. (2025). Dynamic capabilities and microfoundations to overcome organizational inertia in digital transformation. Business Strategy and the Environment, 34(1), 1–15. https://doi.org/10.1002/bse.3287
[8] Bornay-Barrachina, M., & Hock-Doepgen, M. (2025). Sensing, seizing, and reconfiguring dynamic capabilities in digital transformation. Digital Transformation and Society, 3(1), 1–15. https://www.researchgate.net/publication/372671555_ Sensing_seizing_and_reconfiguring_dynamic_capabilities_in_ innovative_firms_Why_does_strategic_leadership_make_a_ difference
[9] Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239–273. https://doi.org/10.1111/j.1540- 5915.2010.00287.x
[10] Chen, Y., & Shang, R. (2021). Digital transformation and dynamic capabilities: A systematic literature review. Technological Forecasting and Social Change, 169, 120801. https://doi.org/10.1016/j.techfore.2021.120801
[11] Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review, 14, 1–25. https://sloanreview.mit.edu/projects/strategy-drives-digitaltransformation/
[12] Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi. org/10.1111/isj.12153
[13] Zhang, K., & Jiang, Y. (2024). Manager characteristics, dynamic capabilities and enterprise digital transformation: PLS- SEM model. Systems Engineering - Theory & Practice, 44(11), 3481–3500. https://doi.org/10.12011/SETP2023-0824
[14] Iden, J., & Bygstad, B. (2024). Sociotechnical microfoundations for digital transformation. European Journal of Information Systems. https://doi.org/10.1080/096008 5X.2024.2347950 (Article page: https://www.tandfonline.com/ doi/full/10.1080/0960085X.2024.2347950)
[15] Kroh, J., Globocnik, D., Schultz, C., Holdhof, F., & Salomo, S. (2024). Micro-foundations of digital innovation capability – A mixed-method approach to develop and validate a multidimensional measurement instrument. Technological Forecasting and Social Change, 198, 122942. https://doi.org/10.1016/ j.techfore.2023.122942 (Article page: https://www.sciencedirect. com/science/article/pii/S0040162523006273)
[16] Sousa-Zomer, T. T., Neely, A., & Martinez, V. (2020). Digital transforming capability and performance: A microfoundational perspective. International Journal of Operations & Production Management, 40(7/8), 1095–1128. https://doi.org/10.1108/IJOPM-06-2019-0444 (Article page: https://www.emerald.com/insight/content/doi/10.1108/ IJOPM-06-2019-0444/full/html)
[17] Höhener, D. (2024). Dynamic capabilities to manage generative artificial intelligence in digital transformation efforts. WI Conference Proceedings (Wirtschaftsinformatik 2024). (Conference paper) (Record page: https://www.alexandria.unisg. ch/entities/publication/e3c75167-3f8d-4639-b2fc-9f5a31a54bc5)
[18] Sniukas, M. (2020). Business Model Innovation as a Dynamic Capability: Micro-Foundations and Case Studies. Springer. https://doi.org/10.1007/978-3-030-50100-6 (Book page: https://link.springer.com/book/10.1007/978-3-030-50100- 6)
[19] Dynamic capabilities in tourism businesses: antecedents and outcomes. Nguyen, H. T. T., Pham, H. S. T., & Freeman, S. (2022). Review of Managerial Science, 17, 1645–1680. https:// doi.org/10.1007/s11846-022-00567-z
[20] Digital platform capability and innovation ambidexterity: The mediating role of strategic flexibility. (2024). Journal of Business Research. 186, 114971. https://doi.org/10.1016/ j.jbusres.2024.114971
[21] Toward the role of organizational culture in data-driven digital transformation. (2024). International Journal of Production Economics, 271, 109205. https://doi.org/10.1016/ j.ijpe.2024.109205
[22] Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs. Hoang, D. V., Hien, N. T., Thang, H. V., Duong, P. N. T., & Duong, T. T-H. (2025). SAGE Open. 15(3). https://doi. org/10.1177/21582440251329967
[23] Digital transformational leadership and organizational agility in digital transformation. (2024). Journal of High Technology Management Research, 35(2), 100517. https://doi. org/10.1016/j.hitech.2024.100517
[24] The digital leadership emerging construct: a multi-method approach. Tigre, F. B., Henriques, P. L., & Curado, C. (2024). Management Review Quarterly, 75, 789–836. https://doi. org/10.1007/s11301-023-00395-9
[25] An innovation potential and organizational performance: an integrative role of company’s dynamic capabilities. (2024). Agricultural and Food Economics, 12, Article 41. https://doi. org/10.1186/s40100-024-00334-6
[26] Heikinheimo, M., Hautamäki, P., Julkunen, S., & Koponen, J. (2025). Dynamic capabilities and multisided platforms: Fostering organizational agility, flexibility, and resilience in B2B service ecosystems. Industrial Marketing Management, 125. https://doi.org/10.1016/j.indmarman.2025.01.006
Downloads
Published
Issue
Section
License
Copyright (c) 2026 by the authors.
This work is licensed under a Creative Commons Attribution 4.0 International License.
