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NTU Management Review Vol. 34 No. 3 Dec. 2024

Exploring the Value Creation Process of Organizational Digital
Transformation: Dynamic Capabilities Perspective

Bo-Yen Shen, Tatung Company
Chen-Yen Yao, Department of Business Administration, Shih Hsin University
Feng-Shang Wu, Graduate Institute of Technology, Innovation & Intellectual Property
Management, National Chengchi University
Wen-Nan Tsan, Digital Transformation Institute

English Summary

Digital transformation is a process rather than just an outcome; it extends beyond
importing information systems. Business leaders must (1) analyze the digital environment;

(2) determine transformation and growth strategies; (3) make choices related to technology;
(4) invest resources; (5) adjust strategies, organizational structures, and business models;
and (6) create value through digital transformation (Besson and Rowe, 2012; Singh and
Hess, 2017). Most studies on digital transformation have focused on the main strategic

leadership styles, challenges, drivers, and reasons for failure during the transformation
process (Ismail, Khater, and Zaki, 2017). However, the digital transformation process is
often longer and more difficult than expected, and this process affects original traditional
value propositions in many companies. Numerous digital transformations have failed

because of the inability to make rapid advancements in or adaptations to digital business
models (Hess, Matt, Benlian, and Wiesböck, 2016). Teece (2018) argues that organizations
supported by dynamic business models can quickly implement, test, redefine, and
adapt their business models. However, few studies have specifically focused on how

organizations undergo digital transformation and have explored the dynamic processes
involved (Cannas, 2023; Vukšić, Ivančić, and Vuge, 2018). Further, despite the importance
of combining the theories of dynamic capabilities for exploring the digital transformation
process, prior research has predominantly investigated this topic by quantitative approach

(Cheng, Fang, and Huang, 2023); limited qualitative research has examined how firms
can adapt their dynamic capabilities to facilitate digital transformation (Bock, Iansiti, and
Lakhani, 2017).

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