Dynamic capability reconstruction of digital transformation for emerging market enterprises: Learning from Chinese experience

Digital transformation is a high-level transformation based on digital conversion and digital upgrading. The main focus of this paper is the role that dynamic capability plays in shaping digital transformation. Applying a single longitudinal case study design to a Chinese high-tech manufacturing company, this study reveals the ways in which dynamic capability promotes digital transformation. The result shows that six factors, including environmental perception, determination and courage of leaders, organisational remodelling, dual business controlling, strong executive power, and service upgrading, integrate to support the framework of dynamic capability and to promote digital transformation. This study contributes to the existing literature on both dynamic capability and digital transformation clearly illustrating how a firm's digital transformation can be achieved through reconstruction of its dynamic capabilities. The findings also provide some recommendations for management of manufacturing companies in emerging markets to carry out digital transformation more effectively. Copyright © 2021 Inderscience Enterprises Ltd.