Digital transformation in the healthcare sector: a novel strategic perspective

PurposeThis study aims to fill the gap in digital transformation (DT) literature, particularly within the healthcare sector, by investigating the effect of strategic reconfiguration (SREC), as an antecedent, on DT. Further, it also aims to investigate the effect of DT on strategic renewal (SR) as a strategic outcome of DT. Thereby, the current study explores the drivers and outcomes of DT from a new strategic perspective.Design/methodology/approachThe structural model is tested via the partial least squares structural equation modeling using a sample of 264 private Egyptian hospitals.FindingsSREC directly and positively affects SR. Besides, the SREC-SR relationship is partially mediated by DT. Accordingly, this study introduces a novel strategic perspective model of DT that depicts how Egyptian private hospitals could reconfigure themselves to transform toward digitalization, which ultimately enabled them to deliver new value propositions and diversified services.Research limitations/implicationsThe sample is restricted to Egyptian private hospitals; thereby, the results may differ in other sectors and other countries. This study ignores the boundary conditions that may accelerate organizations' movement toward digitalization.Practical implicationsManagers of private hospitals can leverage the findings of this study to manage their strategic resources through SREC and foster a culture of DT to enhance their renewal in an increasingly digitalized healthcare landscape.Social implicationsBy demonstrating the positive effects of DT on SR, this study underscores the role of technology in improving healthcare delivery, patient outcomes and overall quality of care.Originality/valueTo the best of the author's knowledge, this is the first empirical study to introduce a model of the strategic antecedents and consequences of DT within the healthcare sector. Unlike the existing DT literature, the current study goes beyond the traditional technological perspective for studying DT by concentrating on the strategic perspective. Therefore, the current study contributes to the existing DT literature by being the first empirical study to investigate the non-technological strategic antecedents that enable successful DT while propping the potential strategic outcome of DT.