This study aims to investigate the differential impacts of efficiency-centered business models and novelty-centered business models on two key dimensions of digital transformation – magnitude and speed. Additionally, it examines the moderating role of collective goal cognition in shaping these relationships, grounded in dominant logic theory.
This study used a two-wave survey of 410 Chinese firms undergoing digital transformation across finance, healthcare, energy, retail and high-tech industries. After data cleaning, 326 valid responses remained, which were analyzed using structural equation modeling.
The results indicate that efficiency-centered business models negatively influence digital transformation magnitude but positively affect its speed. Conversely, novelty-centered business models enhance both digital transformation magnitude and speed. Furthermore, collective goal cognition significantly moderates these relationships.
Theoretically, this research advances dominant logic theory by redefining digital transformation through its magnitude and speed dimensions and proposing a framework for balancing these imperatives via business model adaptation. Practically, it provides firms with actionable insights: policymakers and executives should align business model strategies with organizational cognition to optimize digital transformation outcomes, ensuring both scalability and agility.
