The Impact Of Digital Transformation On Business Model Innovation

Abstract

This empirical study investigates the relationship between digital transformation initiatives and business model
innovation across multiple industry sectors. The research employs a mixed-methods approach to analyze how
organizations leverage digital technologies to reconfigure their value proposition, value creation, and value
capture mechanisms. Data were collected from 387 firms across 12 industries through structured surveys, semistructured
interviews, and organizational performance metrics. Structural equation modeling and thematic
analysis were utilized to examine the causal relationships between digital transformation components
(infrastructure, capabilities, leadership) and business model innovation dimensions. Results demonstrate that
digital transformation positively influences business model innovation, with digital capabilities exhibiting the
strongest mediating effect between digital infrastructure investments and innovative business models.
Furthermore, the study reveals significant industry-specific variations in transformation pathways, with serviceoriented
sectors demonstrating accelerated innovation cycles compared to manufacturing-oriented industries. The
findings contribute to innovation theory by establishing a comprehensive framework that delineates specific
digital transformation mechanisms that catalyze business model reconfiguration, providing actionable insights for
organizational leaders navigating digital disruption