 Digital capability gaps in traditional industries: influencing factors and strategic responsesErik Hanel and Martin Friesl Industry and Innovation, 2024, vol. 31, issue 7, 859-895 Abstract: This paper introduces the concept of digital capability gaps (DCG); the relative difference of a firm’s ability to design and control products, services, and processes by utilising digital technologies in relation to customers and partners. These DCGs matter as they affect SME’s strategic responses and the value-creating relationships. Our findings reveal that strategic responses differ according to the magnitude of DCGs: Large DCGs may offer the opportunity for ‘digital diversification’ by using the capabilities developed to enter new domains. In cases of moderate DCGs, firms respond by adopting the role of a ‘digital parent’ and innovate on behalf of customers. Finally, in the cases of small DCGs, firms may respond by forming ‘digital collaborations.’ Our study also unpacks the influencing factors that affect DCGs: the consolidation or fragmentation of customer portfolio and competitive landscape and the extent to which players have a similar digital pressure for adopting digital capabilities. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:indinn:v:31:y:2024:i:7:p:859-895 Ordering information: This journal article can be ordered from DOI: 10.1080/13662716.2024.2340625 Access Statistics for this article Industry and Innovation is currently edited by Associate Professor Mark Lorenzen More articles in Industry and Innovation from Taylor & Francis Journals |
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