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Digital Strategy Beyond Technology Adoption: Organizational Transformation in Firms Operating Within Data-Centric Economies
Digital strategy has evolved from a narrow focus on technology adoption into a profound organizational transformation imperative for firms competing in data-centric economies. Despite substantial investments in digital tools, many organizations fail to achieve sustained competitive advantage because they treat digital initiatives as IT implementation projects rather than as catalysts for redesigning structures, routines, decision systems, and capabilities. This conceptual article argues that in environments where data serves as the primary coordination mechanism, strategic success depends on shifting from superficial digitization to deep organizational reconfiguration. Synthesizing insights from strategic management, organization theory, and digital transformation scholarship, the analysis first identifies the strategic limitations of technology-centric views, emphasizing organizational inertia, legacy tensions, and misalignments between traditional governance and data-driven logics. It then introduces an integrative framework—the Organizational Transformation Architecture—that comprises six interdependent elements: digital infrastructure, routine transformation, decision-system integration, capability reconfiguration, governance alignment, and continuous learning loops. This framework maps the progression from data integration to strategic outcomes while embedding feedback mechanisms that sustain ongoing adaptation. The article offers executives a practical roadmap for moving beyond adoption to achieve substantive transformation, demonstrating that competitive differentiation in data-centric economies arises not from technology per se but from the organizational redesign that surrounds it. Managerial implications center on leadership practices that align legacy structures with emerging digital logics, enabling firms to realize the full strategic potential of data as a core asset.
Journal of Digital Business and Management Studies
Original Research | Open access | 18 September 2025 | Article: 57