Doing Business in the Digital Age: Towards an Adjusted Resource-Based Model

Abstract

Digital transformation is changing the way companies do business and disrupting industries and workflows. The increasing use of digital technologies and data is altering value creation structures and business models. In this paper, we argue that digitalization is changing the context of the resource-based theory so dramatically that an adaptation of the theory itself is required. The literature-based discussion shows that the adoption of new IT technologies and the use of data are difficult to reconcile with the traditional conceptualization of the resource-based view. This paper therefore discusses ways to further develop the resource-based framework in the context of digital transformation. Therefore, we propose a revised modeling framework that no longer focuses on achieving a long-term, that is sustainable, competitive advantage, but on constantly adapting and changing the resource configuration to ensure a short-term competitive position. We argue that this profound reformulation of the resource-based explanatory model is necessary to better reflect the contemporary reality of the digital world.