Abstract
In light of the booming digital transformation of firms, we study how industry digital fashion in a competitive environment shapes the development of firm digital skills and their subsequent impacts on firm financial performance. We take an emerging divergence lens in recent literature and argue that firms deviate from their industry digital fashion to gain competitive advantage by developing unique firm digital skills. By using a unique panel dataset from 172 firms between 2010 and 2019, we find that the industry digital fashion has a negative association with firm digital skills and that firm digital skills are subsequently positively associated with firm financial performance. Our findings contribute novel insights into firms' divergence from industry norms to derive competitive advantage from firm digital skills, as well as the critical role of industry competitive environment in the digital transformation of firms.
| Original language | English |
|---|---|
| Title of host publication | ICIS 2020 Proceedings |
| Publisher | Association for Information Systems (AIS) |
| Pages | 1-9 |
| ISBN (Print) | 978-1-7336325-5-3 |
| Publication status | Published - Dec-2020 |
| Event | ICIS 2020 - , India Duration: 13-Dec-2020 → 16-Dec-2020 |
Conference
| Conference | ICIS 2020 |
|---|---|
| Country/Territory | India |
| Period | 13/12/2020 → 16/12/2020 |
Keywords
- digital transformation
- firm digital skills
- industry digital fashion
- business analytics
- divergence