Digital Transformation Technologies and Capabilities of Technology Utilization: Case Study of Japanese Firms

Abstract

The Digital Transformation megatrend is fundamentally disrupting and changing every industry, business and most jobs at a rapid pace. In particular, most Japanese firms utilize diverse digital technologies to sustain their competitive advantages. However, too often the return of investment on digital technologies is not as high as expected. This paper presents a research model between digital transformation technologies and capabilities of digital technology utilization. We hypothesize that higher capabilities of digital transformation technologies utilization contribute to performance of digital technologies utilization. With several case studies of Japanese firms, we find that higher capabilities of digital technologies have a positive impact on the performance of digital transformation technologies. Lessons and implications are discussed.