Paper ID
2852
Description
Managers from various industries concur that digital technologies fundamentally transform their business and provide enormous potential for value creation. Thus, many firms define a digital business strategy with the specific focus on improved customer engagement. Despite the high relevance in practice limited studies have analyzed the relationship between digitalization and intangible value drivers such as customer perception, customer satisfaction, or company reputation. In our study we employ the novel construct digital orientation, characterizing the manifestation of a digitalization strategy, and concepts from marketing research to analyze these relationships. We conduct a longitudinal study among 72 S&P 500 companies over 9 years. The results demonstrate that digital orientation leads to increased customer perception and company reputation. These effects are further enforced in environments of high competition. Thereby, we can demonstrate that digitalization is a source of competitive advantage and leads to the creation of intangible value.
Recommended Citation
Beutel, Sebastian; Bendig, David; and Brettel, Malte, "The Intangible Value of Digitalization - Assessing the Relationship of Digital Orientation and Intangible Value Drivers" (2019). ICIS 2019 Proceedings. 24.
https://aisel.aisnet.org/icis2019/governance_is/governance_is/24
The Intangible Value of Digitalization - Assessing the Relationship of Digital Orientation and Intangible Value Drivers
Managers from various industries concur that digital technologies fundamentally transform their business and provide enormous potential for value creation. Thus, many firms define a digital business strategy with the specific focus on improved customer engagement. Despite the high relevance in practice limited studies have analyzed the relationship between digitalization and intangible value drivers such as customer perception, customer satisfaction, or company reputation. In our study we employ the novel construct digital orientation, characterizing the manifestation of a digitalization strategy, and concepts from marketing research to analyze these relationships. We conduct a longitudinal study among 72 S&P 500 companies over 9 years. The results demonstrate that digital orientation leads to increased customer perception and company reputation. These effects are further enforced in environments of high competition. Thereby, we can demonstrate that digitalization is a source of competitive advantage and leads to the creation of intangible value.