The Role of Technological Capacity in Enacting Digital Strategy

Abstract

Much prior research has presumed that organizations can easily set up and effectively execute a digital strategy when they choose to. The findings from our longitudinal case study, however, demonstrated that successful execution of a digital strategy is far from easy. Importantly, our research highlighted that before an organization can effectively execute a digital strategy it needs to build heightened levels of technological capacity. More importantly, we identify that the development of this technological capacity occurs in stages and that each stage depends on a different set of micro-foundations essential for both the creation and successful execution of a digital strategy.