Abstract:
With the advent and rise of digital technologies over the past decades, firms are faced with the dilemma of how to adopt these technologies to remain competitive. As a result, business strategies are being impacted due to business leaders navigating the transformation of the traditional business to one that can compete in a digital economy. To do so, business managers are required to design and implement new digital business models in an effort to identify new opportunities and become differentiated.
Therefore, this study aimed to explore and create a deeper understanding of the relationship between a set of business model components utilised in firms and the digital business strategy. This research analysed responses from 107 participants that had experience in business model and digital strategy design and implementation.
Using a partial least squared structural equation model, this study found that the five business model components identified for this study have a positive correlation with the digital strategy. Furthermore, the results from multiple linear regression analysis of the collective effect of the business model components on the digital business strategy, indicated that two of the five business model components are a significant predictor of success of digital business strategy. As a result, business managers are able to build stronger business cases by focusing on the business model components that will result in a successful digital strategy design and implementation.
