Digital transformation is crucial for optimizing firms' business process management (BPM), yet few studies have examined it from a digital BPM lifecycle perspective. This study investigates whether and how technological competition affects the alignment between strategic commitment and actual actions across the digital BPM lifecycle.
We construct a digital decoupling measure by capturing the gap between firms' digital commitment and actions using text analysis. We then use panel data of Chinese listed companies from 2012 to 2023 to test the proposed relationships.
We find that technological peer pressure positively influences firms' digital decoupling behavior, with managerial myopia and market share loss acting as mediating factors. The moderating results show that patient capital weakens the positive effect of technological peer pressure on digital decoupling. Heterogeneity analyses further indicate that this effect is more pronounced among firms with weaker BPM capability and higher business process complexity.
This study conceptualizes digital decoupling from a digital BPM lifecycle perspective. It extends research on firms' digital behavior under competitive pressure, the determinants of digital BPM capability development, and the assessment framework for digital BPM capability. The findings offer actionable guidance for firms to reduce digital decoupling and help regulators identify priorities and measures to monitor and mitigate it.
