Sensing and responsiveness: digital capabilities to face the challenges of the digital economy
DOI:
https://doi.org/10.5585/remark.v22i4.23912Keywords:
Digital Capabilities, Sensing, Responsiveness, Digital Economy, Digital TransformationAbstract
Purpose of the study: Examine the relationship between digital capabilities and the challenges of the digital economy.
Methodology/approach: Systematic literature review.
Main results: Present a framework with the relationship between the challenges of the Digital Economy and Digital Capabilities.
Theoretical/methodological contributions: The contributions of this article include a deeper understanding of this recent digital phenomenon, presenting the challenges of the digital economy and advancing the notion of digital capabilities around Information Systems.
Relevance/originality: The digital economy continually reshapes how consumers and firms communicate and collaborate through digital technologies, creating significant changes and impacts in digital transformation. The digital economy offers many opportunities for business improvement and diversification. Thus, for a firm to be agile and adapt rapidly to technological evolution, we argue that it is necessary to develop new capabilities, known as digital capabilities, particularly sensing and responsiveness. These capabilities allow firms to develop, mobilize, and use organizational resources effectively and improve their business processes during digital transformation.Downloads
References
Aaker, D. (2022). Four ways digital works to build brands and relationships. Journal of Brand Strategy, 4(1), 37–48.
Aakhus, M., Ågerfalk, P. J., Lyytinen, K., & Te’Eni, D. (2014). Symbolic action research in information systems: Introduction to the special issue. MIS Quarterly: Management Information Systems, 38(4), 1187–1200. https://doi.org/10.25300/MISQ/2014/38:4.3
Alam, S. L., & Campbell, J. (2016). Understanding the temporality of organizational motivation for crowdsourcing. Scandinavian Journal of Information Systems, 28(1), 91–120.
Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015). Service innovation in the digital age: Key contributions and future directions. MIS Quarterly: Management Information Systems, 39(1), 135–154. https://doi.org/10.25300/MISQ/2015/39:1.03
Bayighomog Likoum, S. W., Shamout, M. D., Harazneh, I., & Abubakar, A. M. (2020). Market-Sensing Capability, Innovativeness, Brand Management Systems, Market Dynamism, Competitive Intensity, and Performance: an Integrative Review. Journal of the Knowledge Economy, 11(2), 593–613. https://doi.org/10.1007/S13132-018-0561-X
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly: Management Information Systems, 37(2), 471–482. https://doi.org/10.25300/MISQ/2013/37:2.3
Blomster, M., & Koivumäki, T. (2022). Exploring the resources, competencies, and capabilities needed for successful machine learning projects in digital marketing. Information Systems and e-Business Management, 20(1), 123–169. https://doi.org/10.1007/S10257-021-00547-Y
Chellappa, R. K., Sambamurthy, V., & Saraf, N. (2010). Competing in crowded markets: Multimarket contact and the nature of competition in the enterprise systems software industry. Information Systems Research, 21(3), 614–630. https://doi.org/10.1287/isre.1100.0300
Chen, C. L., Lin, Y. C., Chen, W. H., Chao, C. F., & Pandia, H. (2021). Role of government to enhance digital transformation in small service business. Sustainability (Switzerland), 13(3), 1–26. https://doi.org/10.3390/su13031028
Chen, C. Y., Chou, Y. L., & Lee, C. S. (2021). Social innovation, employee value cocreation, and organizational citizenship behavior in a sport-related social enterprise: Mediating effect of corporate social responsibility. Sustainability (Switzerland), 13(22), 12582. https://doi.org/10.3390/su132212582
Da Silva Freitas, J. C., Gastaud Maçada, A. C., & Brinkhues, R. A. (2017). Digital capabilities as key to digital business performance. AMCIS 2017 - America’s Conference on Information Systems: A Tradition of Innovation, 2017-Augus.
Dąbrowska, J., Almpanopoulou, A., Brem, A., Chesbrough, H., Cucino, V., Di Minin, A., Giones, F., Hakala, H., Marullo, C., Mention, A. L., Mortara, L., Nørskov, S., Nylund, P. A., Oddo, C. M., Radziwon, A., & Ritala, P. (2022). Digital transformation, for better or worse: a critical multi-level research agenda. R and D Management, 52(5), 930–954. https://doi.org/10.1111/radm.12531
de Borba, D. (2022). Research Directions for Value Co-Destruction in Banking Digital Transformation. In E. Oztemel (Org.), Expert Systems With Recent Applications (1o ed, p. 1–18). IntechOpen. https://doi.org/10.5772/intechopen.107534
De Borba, D., & Chaves, M. S. (2021). an Integrative Analysis of Knowledge Management Implementation Frameworks : a Proposed Research Agenda. Revista Alcance, 28(2), 258–277. https://doi.org/10.14210/alcance.v28n2(mai/ago).p258-277
de Borba, D., Palacios, R. A., Luciano, E. M., & Chaves, M. S. (2020). The contribution of knowledge management to smart cities for innovation: proposal for a prescriptive framework and a research agenda. International Journal of Innovation, 8(3), 516–540.
Drnevich, P. L., & Croson, D. C. (2013). Information technology and business-level strategy: Toward an integrated theoretical perspective. MIS Quarterly: Management Information Systems, 37(2), 483–509. https://doi.org/10.25300/MISQ/2013/37.2.08
Echeverri, P., & Skålén, P. (2021). Value co-destruction: Review and conceptualization of interactive value formation. Marketing Theory, 21(2), 227–249. https://doi.org/10.1177/1470593120983390
Fernandes, C., Ferreira, J. J., Raposo, M. L., Estevão, C., Peris-Ortiz, M., & Rueda-Armengot, C. (2017). The dynamic capabilities perspective of strategic management: a co-citation analysis. Scientometrics, 112(1), 529–555. https://doi.org/10.1007/s11192-017-2397-8
Foltean, F. S., & van Bruggen, G. H. (2022). Digital Technologies, Marketing Agility, and Marketing Management Support Systems: How to Remain Competitive in Changing Markets. Organizational Innovation in the Digital Age, 1–38. https://doi.org/10.1007/978-3-030-98183-9_1
Freitas Junior, J. C. D. S., Maçada, A. C. G., Oliveira, M., & Brinkhues, R. A. (2017). Big Data E Gestão Do Conhecimento: Definições E Direcionamentos De Pesquisa. Revista Alcance, 23(4(Out-Dez)), 529. https://doi.org/10.14210/alcance.v23n4(out-dez).p529-546
Freitas Junior, J. C. da S., & Maçada, A. C. G. (2020). Examining Digital Capabilities and Their Role in the Digital Business Performance. Revista Economia & Gestão, 20(56), 148–171. https://doi.org/10.5752/p.1984-6606.2020v20n56p148-171
Gaffley, G., & Pelser, T. G. (2021). Developing a digital transformation model to enhance the strategy development process for leadership in the South African manufacturing sector. South African Journal of Business Management, 52(1), 12. https://doi.org/10.4102/sajbm.v52i1.2357
González-Varona, J. M., López-Paredes, A., Poza, D., & Acebes, F. (2021). Building and development of an organizational competence for digital transformation in SMEs. Journal of Industrial Engineering and Management, 14(1), 15–24. https://doi.org/10.3926/jiem.3279
Hein, A., Schreieck, M., Riasanow, T., Setzke, D. S., Wiesche, M., Böhm, M., & Krcmar, H. (2020). Digital platform ecosystems. Electronic Markets, 30(1), 87–98. https://doi.org/10.1007/s12525-019-00377-4
Heredia, J., Castillo-Vergara, M., Geldes, C., Carbajal Gamarra, F. M., Flores, A., & Heredia, W. (2022). How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal”. Journal of Innovation & Knowledge, 7(2). https://doi.org/10.1016/J.JIK.2022.100171
Hylving, L., Henfridsson, O., & Selander, L. (2012). The Role of Dominant Design in a Product-Developing Firm’s Digital Innovation. Journal of Information Technology Theory and Application, 13(2), 5–21. http://aisel.aisnet.org/jitta/vol13/iss2/2
Kahli, R., & Grover, V. (2008). Business value of IT: An essay on expanding research directions to keep up with the times. Journal of the Association for Information Systems, 9(1), 23–39. https://doi.org/10.17705/1jais.00147
Kinyanjui, S. N. (2013). Challenges Facing the Development of Islamic Banking. Lessons from the Kenyan Experience. European Journal of Business and Management, 5(22), 2222–2839. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.903.3941&rep=rep1&type=pdf
Kothari, A., & Lackner, J. (2006). A value based approach to management. Journal of Business and Industrial Marketing, 21(4), 243–249. https://doi.org/10.1108/08858620610672614
Lavie, D. (2006). Capability reconfiguration: An analysis of incumbent responses to technological change. Academy of Management Review, 31(1), 153–174. https://doi.org/10.5465/AMR.2006.19379629
Li, R., Rao, J., & Wan, L. (2022). The digital economy, enterprise digital transformation, and enterprise innovation. Managerial and Decision Economics, 43(7), 2875–2886. https://doi.org/10.1002/MDE.3569
Lopes, K. M. G., Macadar, M. A., & Luciano, E. M. (2019). Key drivers for public value creation enhancing the adoption of electronic public services by citizens. International Journal of Public Sector Management, 32(5), 553–568. https://doi.org/10.1108/IJPSM-03-2018-0081
Lyytinen, K., Yoo, Y., & Boland, R. J. (2016). Digital product innovation within four classes of innovation networks. Information Systems Journal, 26(1), 47–75. https://doi.org/10.1111/isj.12093
Malar, D. A., Arvidsson, V., & Holmstrom, J. (2019). Digital Transformation in Banking: Exploring Value Co-Creation in Online Banking Services in India. Journal of Global Information Technology Management, 22(1), 7–24. https://doi.org/10.1080/1097198X.2019.1567216
Malchenko, Y., Gogua, M., Golovacheva, K., Smirnova, M., & Alkanova, O. (2020). A critical review of digital capability frameworks: a consumer perspective. Digital Policy, Regulation and Governance , 22(4), 269–288. https://doi.org/10.1108/DPRG-02-2020-0028
Matt, C., Hess, T., & Benlian, A. (2015). Digital Transformation Strategies. Business and Information Systems Engineering, 57(5), 339–343. https://doi.org/10.1007/s12599-015-0401-5
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information technology and organizational performance: An integrative model of it business value. MIS Quarterly: Management Information Systems, 28(2), 283–322. https://doi.org/10.2307/25148636
Mishra, A. N., Konana, P., & Barua, A. (2007). Antecedents and consequences of Internet use in procurement: An empirical investigation of U.S. manufacturing firms. Information Systems Research, 18(1), 103–120. https://doi.org/10.1287/ISRE.1070.0115
Müller, S. D., Holm, S. R., & Søndergaard, J. (2015). Benefits of cloud computing: Literature review in a maturity model perspective. Communications of the Association for Information Systems, 37(1), 851–878. https://doi.org/10.17705/1cais.03742
Nambisan, S., & Baron, R. A. (2013). Entrepreneurship in innovation ecosystems: Entrepreneurs’ self-regulatory processes and their implications for new venture success. Entrepreneurship: Theory and Practice, 37(5), 1071–1097. https://doi.org/10.1111/j.1540-6520.2012.00519.x
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital innovation management: Reinventing innovation management research in a digital world. MIS Quarterly: Management Information Systems, 41(1), 223–238. https://doi.org/10.25300/MISQ/2017/411.03
Parker, G., Van Alstyne, M., & Jiang, X. (2017). Platform ecosystems: How developers invert the firm. MIS Quarterly: Management Information Systems, 41(1), 255–266. https://doi.org/10.25300/MISQ/2017/41.1.13
Porter, M. E. (1985). Technology and competitive advantage (chapter 5 in competitive advantage book). Journal of Business Strategy, 5(3), 60–78. https://doi.org/10.1108/EB039075/FULL/PDF
Rogers, D. (2017). Transformação digital: repensando o seu negócio para a era digital.
Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS Quarterly: Management Information Systems, 27(2), 237–264. https://doi.org/10.2307/30036530
Schuchmann, D., & Seufert, S. (2015). Corporate Learning in Times of Digital Transformation: A Conceptual Framework and Service Portfolio for the Learning Function in Banking Organisations. International Journal of Advanced Corporate Learning (iJAC), 8(1), 31. https://doi.org/10.3991/ijac.v8i1.4440
Smith, A. M. (2013). The value co-destruction process: A customer resource perspective. European Journal of Marketing, 47(11–12), 1889–1909. https://doi.org/10.1108/EJM-08-2011-0420
Steinhoff, L., Arli, D., Weaven, S., & Kozlenkova, I. V. (2019). Online relationship marketing. Journal of the Academy of Marketing Science, 47(3), 369–393. https://doi.org/10.1007/s11747-018-0621-6
Tams, S., Grover, V., & Thatcher, J. (2014). Modern information technology in an old workforce: Toward a strategic research agenda. Journal of Strategic Information Systems, 23(4), 284–304. https://doi.org/10.1016/j.jsis.2014.10.001
Tan, F. T. C., Tan, B., & Pan, S. L. (2016). Developing a leading digital multi-sided platform: Examining IT affordances and competitive actions in alibaba.com. Communications of the Association for Information Systems, 38(1), 738–760. https://doi.org/10.17705/1CAIS.03836
Thomas, A., Passaro, R., & Quinto, I. (2020). Developing Entrepreneurship in Digital Economy: The Ecosystem Strategy for Startups Growth. In Strategy and Behaviors in the Digital Economy. IntechOpen. https://doi.org/10.5772/intechopen.85423
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122(September 2019), 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Westerman, G., Bonnet, D., & McAfee, A. (2012). The Digital Capabilities Your Company Needs. MIT Sloan Management Review, 1–5. http://sloanreview.mit.edu/article/the-digital-capabilities-your-company-needs/
Wolfswinkel, J. F., Furtmueller, E., & Wilderom, C. P. M. (2013). Using grounded theory as a method for rigorously reviewing literature. European Journal of Information Systems, 22(1), 45–55. https://doi.org/10.1057/ejis.2011.51
Wu, F. S., & Tsai, C. C. (2022). A Framework of the Value Co-Creation Cycle in Platform Businesses: An Exploratory Case Study. Sustainability (Switzerland), 14(9), 5612. https://doi.org/10.3390/su14095612
Yoo, Y. (2010). Computing in everyday life: A call for research on experiential computing. MIS Quarterly: Management Information Systems, 34(SPEC. ISSUE 2), 213–231. https://doi.org/10.2307/20721425
Yoo, Y., Boland, R. J., Lyytinen, K., & Majchrzak, A. (2012). Organizing for innovation in the digitized world. Organization Science, 23(5), 1398–1408. https://doi.org/10.1287/orsc.1120.0771
Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). The new organizing logic of digital innovation: An agenda for information systems research. Information Systems Research, 21(4), 724–735. https://doi.org/10.1287/isre.1100.0322
Zhen, Z., Yousaf, Z., Radulescu, M., & Yasir, M. (2021). Nexus of Digital Organizational Culture, Capabilities, Organizational Readiness, and Innovation: Investigation of SMEs Operating in the Digital Economy. Sustainability, 13(2), 720. https://doi.org/10.3390/su13020720
Zimmermann, H.-D. (2015). Understanding the Digital Economy: Challenges for New Business Models. SSRN Electronic Journal, 402. https://doi.org/10.2139/ssrn.2566095
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 ReMark - Revista Brasileira de Marketing
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.