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Design of a business model framework for digital transformation adoption
Dissertation   Open access

Design of a business model framework for digital transformation adoption

Thabe Mothabine
Doctor of Philosophy (PHD), University of Johannesburg
2025
Handle:
https://hdl.handle.net/10210/517512

Abstract

Technological innovations-Management Organizational change Information Technology
The main aim of this thesis was to create a business model framework tailored specifically for implementing digital transformation within organisations. Recognising the complexity of this task, the approach required a detailed examination of various crucial components. The study initiated the investigation with an in-depth analysis of how digital transformation was integrated within the business models of the top 100 organisations listed on the Johannesburg Stock Exchange (JSE) over a continuous three-year period from 2020 to 2022. The selection of JSE-listed organisations was intentional, as they serve as benchmarks for excellence in their respective industries, thus providing valuable insights into best practices in the digital age. This examination was supported by the globally recognised International Integrated Reporting Council's (IIRC) International <IR> Framework, which provided a strong foundation for assessing the integration of digital transformation within organisational structures. The study aimed to validate the assertion that a digitally transformed business model correlates with improved organisational performance, as supported by existing research. To achieve this, a meticulous evaluation of each organisation's performance using the CAMELS Rating System model was conducted. This thorough assessment was vital for understanding the impact of digital transformation on organisational performance and how organisations navigated the challenges and opportunities presented by the digital landscape. The findings from the evaluation consistently demonstrated high levels of digital transformation adoption within the business models of the organisations under study. Significantly, none were classified as having poor or moderate adoption; instead, all were deemed to have rich adoption. Despite the challenges posed by the COVID-19 pandemic, which contributed to a slight decline in performance observed in 2021 and 2022, assessments of organisational performance revealed no instances of poor performance. Instead, all organisations were rated as fair or marginal. The study then carefully examined the resulting digital transformation adoption scores alongside overall performance metrics, using correlation coefficients to assess the relationship between these factors. While the findings revealed relatively weak correlations, indicating the need for further exploration, they aligned with existing literature that underscores the advantages of innovative and strategically aligned business models. Despite the modest correlations, these initial results were promising and could serve as a foundation for continued research in this area. Based on these insights, the "Digital Evolution Navigator Framework" was developed, offering a tailored approach to digital transformation that can be integrated into business strategies for improved scalability and a competitive edge over existing models. Drawing from the results gathered and on theoretical foundations laid by the Resource Based Theory (RBT) (Barney, 1991), Diffusion Theory of Innovation (DOI) (Rogers, 1962), Theory of Planned Behaviour (TPB) (Ajzen, 2011), Rational Choice Theory (RCT) (Fishbein and Ajzen, 1975), Social Cognitive Theory (SCT) (Bandura, 1986), and finally the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003); this framework serves to equip organisations with the necessary tools and strategies to navigate the dynamic landscape of digital transformation effectively. By empowering organisations to enhance their adaptability and competitiveness in a rapidly evolving market, the Digital Evolution Navigator Framework serves as a guiding beacon for organisational success in the digital era.
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