IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v15y2025i1p21-d1563392.html
   My bibliography  Save this article

Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine

Author

Listed:
  • Yamin Abu Alrub

    (Business Organization Department, University of Cordoba, 14071 Cordoba, Spain)

  • Sandra M. Sánchez-Cañizares

    (Business Organization Department, University of Cordoba, 14071 Cordoba, Spain)

Abstract

The concept of digital maturity has gained prominence in the context of digital transformation. It refers to an organization’s ability to effectively adapt to changing environments using digital technologies. At the same time, the dynamic capabilities of an organization play a crucial role in maintaining a competitive advantage. These capabilities allow organizations to integrate, build, and reconfigure competencies in response to market dynamics. Despite empirical evidence supporting the impact of dynamic capabilities on competitive advantage, there remains a need to explore the specific mechanisms driving this relationship. Moreover, in traditional industries experiencing digital disruption, understanding digital maturity as an intermediate outcome becomes essential. This study focuses on the Palestinian financial sector and investigates the significance of digital maturity in the context of dynamic capabilities. Primary data were collected through an online questionnaire survey, and a model was estimated through a SEM-PLS methodology. The results highlight a strong relationship between dynamic capability and competitive advantage. Thus, digital maturity plays a crucial role in enhancing strategic planning efficiency through the implementation of dynamic capabilities.

Suggested Citation

  • Yamin Abu Alrub & Sandra M. Sánchez-Cañizares, 2025. "Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine," Administrative Sciences, MDPI, vol. 15(1), pages 1-28, January.
    • Handle: RePEc:gam:jadmsc:v:15:y:2025:i:1:p:21-:d:1563392
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/15/1/21/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/15/1/21/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph F. Hair & G. Tomas M. Hult & Christian M. Ringle & Marko Sarstedt & Kai Oliver Thiele, 2017. "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 616-632, September.
    2. Erik Døving & Paul N. Gooderham, 2008. "Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices," Strategic Management Journal, Wiley Blackwell, vol. 29(8), pages 841-857, August.
    3. Aimilia Protogerou & Yannis Caloghirou & Spyros Lioukas, 2012. "Dynamic capabilities and their indirect impact on firm performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(3), pages 615-647, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ting Chi & Olabisi Adesanya & Hang Liu & Rebecca Anderson & Zihui Zhao, 2023. "Renting than Buying Apparel: U.S. Consumer Collaborative Consumption for Sustainability," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    2. Blomkvist, Katarina & Engzell, Jeanette & Kappen, Philip & Zander, Ivo, 2024. "How organizational conditions affect employees’ intentions to engage in intrapreneurial new venturing," Technovation, Elsevier, vol. 135(C).
    3. Zhonghua Zhao & Fanchen Meng & Yin He & Zhouyang Gu, 2019. "The Influence of Corporate Social Responsibility on Competitive Advantage with Multiple Mediations from Social Capital and Dynamic Capabilities," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    4. Ashish Kumar & Muskaan Arora & Monika Saini, 2023. "Influence of mathematics on the academic performance of mechanical engineering students: a PLS-SEM approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 367-376, February.
    5. Keen, Christian & Lescop, Denis & Sanchez-Famoso, Valeriano, 2022. "Does coopetition support SMEs in turbulent contexts?," Economics Letters, Elsevier, vol. 218(C).
    6. Wang, Siqi & Cheah, Jun-Hwa & Lim, Xin-Jean & Leong, Yee Choy & Choo, Wei Chong, 2022. "Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Chen, Xia & Miraz, Mahadi Hasan & Gazi, Md. Abu Issa & Rahaman, Md. Atikur & Habib, Md. Mamun & Hossain, Abu Ishaque, 2022. "Factors affecting cryptocurrency adoption in digital business transactions: The mediating role of customer satisfaction," Technology in Society, Elsevier, vol. 70(C).
    8. Salgado, Stéphane & Hemonnet-Goujot, Aurelie & Henard, David H. & de Barnier, Virginie, 2020. "The dynamics of innovation contest experience: An integrated framework from the customer’s perspective," Journal of Business Research, Elsevier, vol. 117(C), pages 29-43.
    9. José Roberto Frega & Alex Antonio Ferraresi & Carlos Olavo Quandt & Claudimar Pereira da Veiga, 2018. "Relationships Among Knowledge Management, Organisational Innovativeness and Performance: Covariance-Based Versus Partial Least-Squares Structural Equation Modelling," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-19, March.
    10. Rodríguez-López, María Eugenia & Higueras-Castillo, Elena & Rojas-Lamorena, Álvaro J. & Alcántara-Pilar, Juan Miguel, 2024. "The future of TV-shopping: predicting user purchase intention through an extended technology acceptance model," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    11. Muhammad Qamar Zia & Tobias M. Huning & Muhammad Sufyan Ramish & Muhammad Naveed & Shiraz Ahmed, 2024. "The impact of psychological empowerment on innovative work behavior: a moderated mediation model of informal learning and proactive behavior," Review of Managerial Science, Springer, vol. 18(12), pages 3695-3716, December.
    12. Lussier, Bruno & Philp, Matthew & Hartmann, Nathaniel N. & Wieland, Heiko, 2021. "Social anxiety and salesperson performance: The roles of mindful acceptance and perceived sales manager support," Journal of Business Research, Elsevier, vol. 124(C), pages 112-125.
    13. David Giauque & Frédéric Cornu & Karine Renard & Yves Emery, 2023. "Opportunity to Use New Ways of Working: Do Sectors and Organizational Characteristics Shape Employee Perceptions?," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    14. Rui Baptista & Murat Karaöz & João Correia Leitão, 2020. "Diversification by young, small firms: the role of pre-entry resources and entry mistakes," Small Business Economics, Springer, vol. 55(1), pages 103-122, June.
    15. Mohammad Nurul Alam & Osarodion Ogiemwonyi & Ibrahim. E. Hago & Noor Azlinna Azizan & Fariza Hashim & Md Sazzad Hossain, 2023. "Understanding Consumer Environmental Ethics and the Willingness to Use Green Products," SAGE Open, , vol. 13(1), pages 21582440221, January.
    16. Rogier van de Wetering & Sherah Kurnia & Svyatoslav Kotusev, 2020. "The Effect of Enterprise Architecture Deployment Practices on Organizational Benefits: A Dynamic Capability Perspective," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    17. Mine Halis & Duygu Yildirim, 2022. "The effect of perceived social support and life orientation on anxiety caused by online education in Covid 19 conditions," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 310-322, June.
    18. Halpern, Nigel & Mwesiumo, Deodat & Suau-Sanchez, Pere & Budd, Thomas & Bråthen, Svein, 2021. "Ready for digital transformation? The effect of organisational readiness, innovation, airport size and ownership on digital change at airports," Journal of Air Transport Management, Elsevier, vol. 90(C).
    19. Elisa Martinelli & Giulia Tagliazucchi & Gianluca Marchi, 2015. "Disastri Naturali e Dynamic Capabilities nel Commercio," Department of Economics 0066, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    20. Verreynne, Martie-Louise & Hine, Damian & Coote, Len & Parker, Rachel, 2016. "Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning," Journal of Business Research, Elsevier, vol. 69(10), pages 4287-4303.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:15:y:2025:i:1:p:21-:d:1563392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.