Digital orientation: Conceptualization and operationalization of a new strategic orientation

Although there is ample evidence that digital technologies are strategically important for value creation, extant literature lacks holistic concepts that capture an organization’s strategic orientation concerning digital innovation and transformation initiatives. This study integrates recent digital...

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Bibliographic Details
Published in:European management journal 2021-10, Vol.39 (5), p.645-657
Main Authors: Kindermann, Bastian, Beutel, Sebastian, Garcia de Lomana, Gonzalo, Strese, Steffen, Bendig, David, Brettel, Malte
Format: Article
Language:English
Subjects:
CATA
Computer-aided text analysis
Concept formation
Digital orientation
Digital technology
Digitalization strategy
Digitization
Information systems
Information technology
Innovations
Measurement
Organizational performance
Strategic orientation
Strategic planning
Studies
Transformation
Value creation
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Summary:Although there is ample evidence that digital technologies are strategically important for value creation, extant literature lacks holistic concepts that capture an organization’s strategic orientation concerning digital innovation and transformation initiatives. This study integrates recent digitalization themes with IT business alignment research to conceptualize a new strategic orientation construct: digital orientation. The construct is manifested in four dimensions which we operationalize for computer-aided text analysis. We validate the construct based on 6498 shareholder letters from large US firms over 16 years. Building upon the resource-based view, we validate the digital orientation construct by linking it to firm performance. Our findings advance the literature on strategic orientations and bring the domains of strategy and information systems closer together. The novel digital orientation construct and the validated measurement instrument lead to many new research opportunities. •Proposes a novel digital orientation concept and delineates its dimensions.•Operationalizes the concept for computer-aided text analysis.•Paves the way for further research.•Enables scholars to better understand the implications of digitalization.•Brings strategy and information system domains closer together.
ISSN:0263-2373
1873-5681
DOI:10.1016/j.emj.2020.10.009