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Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model

Author

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  • Maha Shehadeh

    (Department of Finance and Banking Sciences, Faculty of Business, Applied Science Private University, Amman 11931, Jordan)

  • Ahmad Almohtaseb

    (Department of Business Administration, Faculty of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Jehad Aldehayyat

    (Department of Business Administration, Faculty of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Ibrahim A. Abu-AlSondos

    (College of Computer Information Technology, American University in the Emirates (AUE), Dubai 503000, United Arab Emirates)

Abstract

Digital transformation is important not only in the manufacturing sector but can also help service-based organizations to achieve competitive advantage. Therefore, this study has examined the impact of digital transformation on competitive advantage and the mediating role of entrepreneurial orientation. Innovation capability is considered a moderator between digital transformation and competitive advantage. The data for the research were gathered from service companies in Jordan, and AMOS was utilized for the analysis. The results revealed that digital transformation not only influences competitive advantage but also affects entrepreneurial orientation. Entrepreneurial orientation significantly mediates the relationship between digital transformation and competitive advantage. In addition, innovation capabilities moderate the relationship between digital transformation, competitive advantage, and entrepreneurial orientation. Innovation, production, and operational managers as well as owners of service companies can use the results of this research as a guideline for policy-making in order to develop a competitive advantage.

Suggested Citation

  • Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2077-:d:1043654
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