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

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 mainta...

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Main Authors: Yamin Abu Alrub, Sandra M. Sánchez-Cañizares
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Administrative Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3387/15/1/21
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author Yamin Abu Alrub
Sandra M. Sánchez-Cañizares
author_facet Yamin Abu Alrub
Sandra M. Sánchez-Cañizares
author_sort Yamin Abu Alrub
collection DOAJ
description 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.
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institution Kabale University
issn 2076-3387
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spelling doaj-art-90f2037c22e544b69d8829143cbf332a2025-01-24T13:15:21ZengMDPI AGAdministrative Sciences2076-33872025-01-011512110.3390/admsci15010021Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from PalestineYamin Abu Alrub0Sandra M. Sánchez-Cañizares1Business Organization Department, University of Cordoba, 14071 Cordoba, SpainBusiness Organization Department, University of Cordoba, 14071 Cordoba, SpainThe 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.https://www.mdpi.com/2076-3387/15/1/21dynamic capabilitiesdigital maturitydigital transformationstrategic planningcompetitive advantage
spellingShingle Yamin Abu Alrub
Sandra M. Sánchez-Cañizares
Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
Administrative Sciences
dynamic capabilities
digital maturity
digital transformation
strategic planning
competitive advantage
title Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
title_full Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
title_fullStr Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
title_full_unstemmed Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
title_short Dynamic Capabilities and Digital Transformation: Toward Strategic Planning in the Digital Age—Evidence from Palestine
title_sort dynamic capabilities and digital transformation toward strategic planning in the digital age evidence from palestine
topic dynamic capabilities
digital maturity
digital transformation
strategic planning
competitive advantage
url https://www.mdpi.com/2076-3387/15/1/21
work_keys_str_mv AT yaminabualrub dynamiccapabilitiesanddigitaltransformationtowardstrategicplanninginthedigitalageevidencefrompalestine
AT sandramsanchezcanizares dynamiccapabilitiesanddigitaltransformationtowardstrategicplanninginthedigitalageevidencefrompalestine