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Cited by 4,392Information Technology Governance and StrategyDigital Innovation in IndustriesBusiness Strategies and Innovation

Digital Business Strategy: Toward a Next Generation of Insights

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Bharadwaj, Anandhi, El Sawy, Omar A., Pavlou, Paul A., Venkatraman, N.·2013·MIS Quarterly
DOI 10.25300/misq/2013/37:2.3
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Abstract

Over the last three decades, the prevailing view of information technology strategy has been that it is a functional-level strategy that must be aligned with the firm’s chosen business strategy. Even within this so-called alignment view, business strategy directed IT strategy. During the last decade, the business infrastructure has become digital with increased interconnections among products, processes, and services. Across many firms spanning different industries and sectors, digital technologies (viewed as combinations of information, computing, communication, and connectivity technologies) are fundamentally transforming business strategies, business processes, firm capabilities, products and services, and key interfirm relationships in extended business networks. Accordingly, we argue that the time is right to rethink the role of IT strategy, from that of a functional-level strategy—aligned but essentially always subordinate to business strategy—to one that reflects a fusion between IT strategy and business strategy. This fusion is herein termed digital business strategy. We identify four key themes to guide our thinking on digital business strategy and help provide a framework to define the next generation of insights. The four themes are (1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the sources of business value creation and capture in digital business strategy. After elaborating on each of these four themes, we discuss the success metrics and potential performance implications from pursuing a digital business strategy. We also show how the papers in the special issue shed light on digital strategies and offer directions to advance insights and shape future research.

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  • Value from a BDAC results from improved decision making and repositioning in relation to external needs and opportunities.

    “Consequently, value from a BDAC is a result of improved decision making and repositioning in relation to external needs and opportunities [69].”

    From Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities (2020) · cites this paper as [69]

    In “Speed of Decision Making” (page not provided), the paper links value from big-data-related information to faster, more effective decisions. “Increased Value from Information” (page not provided) describes adapting offerings to customer preferences, but the paper does not establish that value from a big data analytics capability specifically results from repositioning in response to external needs and opportunities. (LLM, conf=0.84)

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  • Digital transformation is changing how small- and medium-sized enterprises (SMEs) create and capture value.

    “Digital transformation is changing how small-and medium-sized enterprises (SMEs) create and capture value (Bharadwaj, El Sawy, Pavlou, & Venkatraman, 2013;Lucas, Agarwal, Clemons, El Sawy, & Weber, 2013).”

    From Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? (2019) · cites this paper as Bharadwaj, El Sawy, Pavlou, & Venkatraman, 2013

    The “Sources of Value Creation and Capture” section (page not provided) says digital business strategy alters how firms create and capture value. The “Emergence of Digital Business Strategy” section discusses established firms and startups, but the paper does not establish this claim specifically for SMEs. (LLM, conf=0.86)

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  • A strong BDAC can be associated with the move toward a digital business strategy.

    “In effect, the value of a strong BDAC can be associated with the move toward a digital business strategy noted in the special issue editorial of Bharadwaj et al. [69].”

    From Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities (2020) · cites this paper as [69]

  • Expanding across digital technology layers involves nascent or non-existent markets and creates value-creation opportunities that are difficult to identify beforehand.

    “Such expansion involves non-existent, or nascent, markets and presents new opportunities for value creation (Bharadwaj et al. 2013), which cannot be easily identified ex ante.”

    From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Bharadwaj et al. 2013

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Cites

Flagged first, then by citations

Research works printed but not linked: 6

  1. [7]7. Burgelman, R. A., and Grove, A. 2007. "Cross-Boundary Disrup- tors: Powerful Inter-Industry Entrepreneurial Change Agents," Strategic Entrepreneurship Journal (1:3-4), pp. 315-327.
  2. [15]15. Easley, D., and Kleinberg, J. 2010. Networks, Crowds, and Mar- kets: Reasoning About a Highly Connected World, Cambridge, UK: Cambridge University Press.
  3. [28]28. OECD. 2012. "Machine-to-Machine Communications: Connecting Billions of Devices," OECD Digital Economy Papers, No. 192, OECD Publishing (http://www.oecd-ilibrary.org/science-and- technology/machine-to-machine-communications_5k9gsh2gp0 43-en).
  4. [32]32. Pavlou, P. A., and El Sawy, O. A. 2006. "From IT Leveraging Competence to Competitive Advantage in Turbulent Environ- ments," Information Systems Research (17:3), pp. 198-227.
  5. [36]36. Reich, B. H., and Benbasat, I. 2000. "Factors That Influence the Social Dimensions of Alignment Between Business and Informa- tion Technology Objectives," MIS Quarterly (24:1), pp. 81-114.
  6. [48]48. Venkatraman, N. 1994. "IT-Enabled Business Transformation: From Automation to Business Scope Redefinition," Sloan Management Review (35:2), pp. 73-87.

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Authors
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N.
Affiliations
  • Emory University (US)
  • Marshall School of Business, University of Southern California Los Angeles, CA 90089-1421 U.S.A.
  • Temple University (US)
  • Boston University (US)
Corresponding author
Pavlou, Paul A.
ORCID
Venue
MIS Quarterly
Publisher
MIS Quarterly
Published
2013-06-01
Volume
37
Issue
2
Pages
471-482
ISSN
  • 0276-7783 (ISSN-L)
  • 2162-9730
DOI
10.25300/misq/2013/37:2.3
OpenAlex
W2148060162
Semantic Scholar
7f17906f57732ca49396da5a0ac968f0ba6b35d4
Cited by
4,392
References
61
Citations by year
2026: 794 · 2025: 701 · 2024: 590 · 2023: 484 · 2022: 381 · 2021: 359 · 2020: 326 · 2019: 205 · 2018: 161 · 2017: 123 · 2016: 100 · 2015: 105 · 2014: 54 · 2013: 4 · 2012: 3
FWCI
176.72
Type
journal article
Language
en
Open access
Locations
  • MIS Quarterly (publishedVersion)
  • Journal of the Association for Information Systems (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
Keywords
digital business strategy, IT strategy, business strategy, business-IT alignment, digital transformation, corporate value creation, value capture, inter-firm relationships, business networks, business process change, organizational capabilities, performance implications, success indicators

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