Digital orientation: Conceptualization and operationalization of a new strategic orientation

• 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
• ISSN: 0263-2373; 1873-5681
• DOI: 10.1016/j.emj.2020.10.009

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.