No Impact -- Digitalization spurs innovation and competitiveness – shaped by consumer demands, means no labor exploitation
Esther Calderon-Monge and Domingo Ribeiro-Soriano, 3/23, Esther Calderon-Monge is part of the faculty of Economy and Business Studies for the University of Burgos and Domingo Riberio-Sorinao is a professor of Business Administration at the Universitat de Valencia. National Library of Medicine, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10043855/ AN
When digital technologies are installed in an organization, they interact with organizational and managerial characteristics, specifically with the strategy and the legacy of an organization, as well as with the resources, the processes, the values, and the culture of an organization (Dewan et al. ), without forgetting positive attitudes towards change and technology (Dery et al. ). All these organizational antecedents are integrated and interact with environmental antecedents and the characteristics of the country, the industry, and the consumers. These characteristics include the legal conditions and the infrastructure of a country, as well as its regulatory frameworks and interventions (Cortet et al. ), and the dynamics of an industry driven by technology, which includes the changing technological panorama of a country (Alos-Simo et al. ). The above in no way ensures the success of many digital transformations within firms. In a recent study, Witschel et al. () demonstrated that the innovation of the business model is an effective way of continuing to be competitive in the digital era. To do so, these authors defended the role that dynamic capabilities play in the innovation of the business model, as well as contextual factors, leadership and business mentalities. Moreover, Wen et al. () affirmed that manufacturing firms with greater viability are more adaptable to DT and tend to implement differentiated competitive strategies, for which reason they concluded that the effect of incentivizing innovation is greater for firms of higher viability. The antecedents of DT (digital orientation, digital intensity, and digital maturity) were also analyzed to understand their influence on the financial success of firms (Nasisri et al. 2022). These authors maintained that digital orientation and digital intensity in themselves contributed nothing to the financial success of firms; and digital maturity acted as a mediator between digital orientation and the financial success of firms, and between digital intensity and the financial success of firms. DT, therefore, presented important opportunities for firms, but also for entrepreneurs. In the case of digital entrepreneurship, Chatterjee et al. (2022) provided evidence that perceived utility, perceived ease of use, and willingness to introduce strong and significant changes all affected digital entrepreneurship.
In addition, a DT is shaped by the characteristics of the consumer, in particular, the demand of the digital consumer. Consumers place increasing trust in digital technologies throughout their daily lives and personal interactions (Brynjolfsson et al. ) and expect ubiquitous access to virtual resources (Benlian et al. ). Both the appearance of digital technologies and their diffusion have led to greater data availability (on these aspects, see Vial , p.123), which has in turn increased the importance of automated learning and the analysis of data for organizations (Weichert ). These data enable firms to offer services that better respond to the needs of their clients and to complete processes in more efficient ways for their own competitive advantage. Thus, some firms use social networks such as Twitter and Facebook to institute customer care operations and then use the data that are generated from these interactions to appeal to client sentiment in real time. Finally, the digital industrial transformation, known as the fourth industrial revolution or Industry 4.0 implies a change of paradigm from a hyperconnected and centralized manufacturing ecosystem to a decentralized one (Li et al. ). Under Industry 4.0, intelligent physical objects, decentralized subsystems, and even human components are perfectly integrated within an interoperable, hyperconnected, and decentralized production system (see Hodapp and Hanelt 2022) that is capable of adapting in real time and in an autonomous manner to environmental change (Ardito et al. ; Sanchez et al. ). Khan and Javaid (2022) considered that the IoT was a critical component of Industry 4.0, which improved product manufacturing efficiency, because it was done with fewer errors and costs. Somohano-Rodiríguez et al. (2022), analyzing the role that enabling digital Industry 4.0 (I4.0) technologies played in SME innovations, found that strategic planning advanced I4.0 and that enabling Information and Communication digital technologies promoted innovation more intensely than enabling digital technologies for integration and advanced robotics. Bhatia and Kumar () analyzed the critical success factors of I4.0, highlighting “data governance” as the most critical factor.