Abstract
Business digital transformation is the most significant transformational change in the dynamic changing business environment to create new business opportunity result in sustainable business. However, the definition and role of dynamic capability and digital transformation are still received limited scholarly attention within the context of incumbent firms, UK. The aim of this research was to assess the existing theories of dynamic capabilities for the digital transformation and strategic renewal to achieve firms’ sustainable competitive advantage and consequently, proposed a conceptual framework to achieve sustainable competitive advantages through business digital transformation which led to the development of a new theory for use in the research context. The conceptual model encourages practitioners to understand how the incumbent firms in the beverage companies involve in digital transformation process to gain sustainable competitive advantages. The research adopted an instrumental case study to explore the research questions. The research guided by qualitative data collection through in-depth interviews, observation, documents and field note with a sample of 40 higher leadership and managerial position in the incumbent firms.
The findings identified a new approach to achieve sustainable competitive advantages through dynamic capability for digital transformation. The study identified the digital transformation is not only a technology but also a strategy to gain competitive advantage which is an ongoing process of using new digital technologies as the core dynamic capability for the strategic renewal of new business model, organisational structure and organisational culture to gain sustainable competitive advantage. The 5 themes and 13 sub-themes in line with 47 dimensions led to the development of a new emergent theory to achieve sustainable competitive advantages. The study represented internal constraint and facilitates and external fits, thereby shaping a more holistic approach.