Understanding the complex nature of digital capabilities (DCs) is crucial in today's rapidly evolving environment. Organisations must actively adapt to the fast-paced digital landscape as moving away from operating in stable or slow-changing environments. This study examines the dynamic role of DCs in driving organisational performance, emphasising the need for continuous adaptation and innovation in response to the ever-changing digital ecosystem. This paper aims to conceptualise, identify dimensions, and study a firm's “role of dynamic capabilities - DCs” through resource-based view theory. It underscores the pillars of DCs, which are digital culture, infrastructure, and skills (including supporting institutions), and it argues for their strategic resource character by improving corporate performance, innovation, and competitiveness. The research incorporates an integrative approach to discern the complex linkage of DCs with organisational performance. It also highlights the mediating effects of digital maturity, transformation, and innovation. Based on the proposed conceptual framework and discussion, this research can contribute to academicians and practitioners in terms of theoretical and managerial contributions that provide understanding for organisations to survive in the digital age with problems of transformation in the process.
Candraningrat et al. (Wed,) studied this question.
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