Digital transformation and digital dynamic capabilities improvement in low-medium technology sector: evidence from Thai family firms

Abstract

With the digital technologies diffusion, low-medium technology firms have been pushed to advance their dynamic capabilities. Through an exploratory multiple-case study, we analyze four Thai family firms assessing their preparedness in pursuing a digital transformation journey and their ability to improve dynamic capabilities. The study shows that LMT firms are in the early stage of their digital transformation, which is led by being part of a global value chain, serving exigent consumers, and imitating startups. Thai firms revitalize business models, while optimizing operations. They build dynamic capabilities through the help of third-party providers prioritizing social media marketing and digital marketing, with a general awareness of environmental, societal, and governance trends. Overall, family firms are still reluctant to pursue strategic agility and rapid prototyping. Thus, in the absence of an innovation ecosystem supporting family firms, it is harder to augment their absorptive capacity and redesign the internal structure of the organization.