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The Transformation of Competitive Strategy in Data-Rich Markets: Emerging Logics of Advantage in the Digital Economy
The digital economy has fundamentally altered the foundations of competitive strategy, shifting firms from reliance on scarce physical and intangible resources toward data-rich environments where advantage stems from continuous data accumulation, analytics, and platform-mediated interactions. This theory-development article synthesizes recent literature on digital platforms, big data analytics, and ecosystem dynamics to propose new logics of competitive advantage characterized by speed, scale, learning, and connectivity. Traditional resource-based and positioning views are transformed as firms leverage data as a generative resource, platforms as coordination mechanisms, and algorithms for real-time adaptation. The article identifies key mechanisms driving this shift: data-driven resource reconfiguration, network effects amplifying scale advantages, algorithmic competition enabling dynamic strategic adjustment, and ecosystem positioning fostering connectivity. Five theoretical propositions articulate these relationships, culminating in a conceptual model illustrating the evolutionary trajectory from traditional to data-driven strategies. By highlighting feedback loops of continuous learning and adaptation, the framework explains how firms sustain advantage in volatile, data-intensive markets. Contributions include a reconceptualization of competitive logics in the digital era and implications for strategic management in platform-dominated ecosystems.
Journal of Digital Business and Management Studies
Original Research | Open access | 18 September 2024 | Article: 40
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