Abstract

The information systems research stream on dynamic capabilities (DCs) considers how technology impacts strategic management at the organizational level in the turbulent environment evoked by digital transformation. However, the underlying mechanisms of how organizations use technologies effectively to increase their competitive advantage through competitive actions is underexplored. This paper seeks to empirically investigate the impact of digital technology-enabled DCs on action speed and action volume, two indicators of competitive aggressiveness. Furthermore, we propose the mediating role of strategic renewal. Our PLS-SEM analysis based on survey data from 174 German business units indicates that digital technology-enabled DCs directly enhance strategic renewal, action speed, and action volume. We also detect a partial mediating effect of strategic renewal on the relationship between digital technology-enabled DCs and action volume. This study thus offers insights into the underlying mechanisms that may allow organizations to enhance their competitive aggressiveness through the application of digital technologies.

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