A Dynamic Capability Perspective on Digital Transformation in Emerging Market Firms : A Qualitative Study of Drivers, Process, and Consequences

Despite the wide awareness of the importance of digital transformation (DT) for emerging market firms (EMFs), however, we have limited understanding of how EMFs implement DT. Supported by insights gleaned from echelon informants from 24 companies in Thailand, this qualitative study establishes a framework for a dynamic capability–based view of DT in EMFs and identifies important drivers and consequences of DT. The framework shows that the DT process in EMFs proceeds over three stages—market opportunity sensing, digital technology acquisition, and leading digital transformation—which are driven by technological dynamism, business ties, and institutional support. Once DT is successfully implemented in EMFs, the firms enhance their operational efficiency, customer relationship management, business model innovation, and human resources management. This study thus contributes to the DT literature by offering a three-staged model of DT and identifying important antecedents and consequences of DT, which together specify how EMFs digitally transform themselves