Forced digitalization. Balancing internal and external drivers for business performance and survival

Abstract

In the past several decades, there has been a notable shift in businesses regarding digital transformation, which has been characterized as an asymmetrical process aimed at improving the overall value of the firm. The process of this transition is influenced by a combination of internal and external drivers. Learning orientation, absorptive capability, and resilience are highly significant factors internally. In addition to the aforementioned factors, external influences such as institutional pressures, technological turbulence, and consulting play a crucial role. This study aims to investigate the significance of both internal and external factors that promote digitalization in relation to performance and the long-term viability of businesses. In order to evaluate the efficacy of the models, a survey was administered to a sample of chief executive officers (CEOs) and business owners from various geographic locations within Spain. The PLS-SEM technique was utilized to estimate the hypotheses. The study emphasizes the role of digitalization as a mediator and examines how external and internal factors impact company performance and longevity. The primary discovery of this article is the validation of the beneficial impact of consulting in the process of company digitalization, together with its influence on performance, particularly in cases where institutional pressure serves as the primary driver of digital transformation. Overall, the research offers a full comprehension of the intricate dynamics between digitalization and many internal and external organizational elements. This finding provides empirical evidence in favor of the beneficial impact of implementing several compulsory public policies within business organizations.