Open Strategy and Competitive Advantage in the Age of Digital Transformation

Abstract

Open strategy is a new paradigm that has more benefit to business especially small ones. The aim of this research is to clear this proposition that in the age of digital transformation adopting open strategy paradigm will help business to attain competitive advantage. To this purpose, two main variables that have capability in the mentioned new paradigm, learning and innovation, came into focus. Based on a standard questionnaire, data were gathered from high-tech Small and medium-sized enterprises (SMEs) that are active in Tehran science and technology parks. Reliability of the instrument was confirmed at an appropriate level. Data were analyzed based on structural equation modeling and results have shown the positive effect of learning on innovation and competitive advantage, and between innovation and competitive advantages. These findings indicate that SMEs must pay close attention to the nature, dimensions, dynamics, and elements of open strategy to attain competitive advantage in the VUCA¹ world.

Citation

Mohammadian, B. and Bafti, A.S. (2023), "Open Strategy and Competitive Advantage in the Age of Digital Transformation", Saini, A. and Garg, V. (Ed.) Transformation for Sustainable Business and Management Practices: Exploring the Spectrum of Industry 5.0, Emerald Publishing Limited, Leeds, pp. 31-40. https://doi.org/10.1108/978-1-80262-277-520231004