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Drivers of decision-making towards for digital transformation

Author

Listed:
  • Klaus Ulrich

    (ESIC Business and Marketing School
    ESIC University)

  • María Guijarro-García

    (ESIC Business and Marketing School
    ESIC University)

  • Esther Pagán-Castaño

    (ESIC Business and Marketing School
    ESIC University)

  • Paula Nieto-Alemán

    (ESIC Business and Marketing School
    ESIC University)

Abstract

In the age of the digital economy, certain mechanisms and actions allow companies to generate sustainable competitive advantage by developing their transformative capacity through digitalisation. Identifying these mechanisms is important, and it forms the core focus of this study. Specifically, the aim was to provide an overview of the factors that determine decisions regarding the allocation of financial resources for digital transformation (DT). A survey of 59 companies located in the region of Valencia (Spain) was performed. More than 50% were SMEs. Analysis of the data from this survey provided an overview of the financial impact of DT processes and the implications for decision-making. Fuzzy-set qualitative comparative analysis (fsQCA) was used for the analysis, revealing which configurations of DT investment decisions lead to high levels of economic profitability. The key finding is that companies tend to invest in DT, adopting a non-conservative approach to increase profits. The findings can contribute to the development of strategies and the evaluation of investment in digitalisation, going beyond the use of tangible indicators of financial profitability.

Suggested Citation

  • Klaus Ulrich & María Guijarro-García & Esther Pagán-Castaño & Paula Nieto-Alemán, 2025. "Drivers of decision-making towards for digital transformation," Review of Managerial Science, Springer, vol. 19(7), pages 2105-2125, July.
    • Handle: RePEc:spr:rvmgts:v:19:y:2025:i:7:d:10.1007_s11846-024-00752-2
    DOI: 10.1007/s11846-024-00752-2
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    Keywords

    Digital transformation; Competitive advantage; Strategy; Management; Profitability;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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