Strategic Technology Adoption and Competitive Advantage: A Dynamic Capabilities Framework for Enterprise AI and Digital Innovation

Digital transformation and artificial intelligence adoption present both opportunities and challenges for enterprises seeking sustainable competitive advantage. Yet technology adoption alone does not guarantee superior performance. Through a structured review of several studies identified via systematic search of the Web of Science and Scopus databases (2015–2024), this paper synthesizes research on strategic technology adoption through the lens of dynamic capabilities theory. We propose an integrated Strategic Technology Adoption Model (STAM) comprising five iterative stages: environmental scanning, strategic alignment assessment, capability development, technology integration, and continuous reconfiguration. The review identifies absorptive capacity, strategic alignment, and platform orchestration capabilities as critical mediators between technology adoption and competitive outcomes, while environmental dynamism, organizational agility, and governance structures moderate these effects. Drawing on micro-foundational analysis at individual, process, and structural levels, the paper derives twelve testable propositions specifying conditions under which enterprise AI enhances sensing, seizing, and reconfiguring capabilities. The STAM model advances existing frameworks, including those of Vial (2019) and Warner and Wäger (2019) by integrating AI-human substitution-complementarity dynamics and ecosystem-level orchestration mechanisms absent from prior models. Practical implications address capability-building priorities for enterprises navigating digital disruption. Keywords: dynamic capabilities, strategic technology adoption, competitive advantage, enterprise AI, digital transformation. Title: Strategic Technology Adoption and Competitive Advantage: A Dynamic Capabilities Framework for Enterprise AI and Digital Innovation Author: Fiyinfoluwa Oyesola, Micheal Odunsi International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 13, Issue 2, April 2026 - June 2026 Page No: 146-163 Paper Publications Website: www.paperpublications.org Published Date: 19-May-2026 DOI: https://doi.org/10.5281/zenodo.20286960 Paper Download Link (Source) https://www.paperpublications.org/upload/book/Strategic%20Technology%20Adoption-19052026-6.pdf