How does digital customer orientation drive digital transformation? Scale development and mechanism testing

Purpose While prior research has examined customer orientation (CO) in digital contexts, limited attention has been paid to the conceptualization, measurement, and role of digital customer orientation (DCO). This study defines DCO, develops a scale and examines its role in traditional firms’ digital transformation. Design/methodology/approach This study designs two empirical studies. Study 1 develops and validates a DCO scale, and Study 2 tests the hypotheses using structural equation modeling. Findings This study defines DCO within a dynamic capability framework and conceptualizes it as four dimensions: digital customer positioning, data analytics support, interactive value creation, and ecosystem construction. Empirical results show that DCO facilitates digital transformation performance through business model innovation (BMI), with organizational flexibility and environmental turbulence exerting moderating effects. Originality/value This study extends CO theory to the digital economy by conceptualizing and measuring DCO. It also offers insights into how DCO facilitates digital transformation and enriches the BMI literature.