He Hongjiang
THE IMPACT OF DIGITAL TRANSFORMATION ON GLOBAL COMPETITIVENESS AND STRATEGIC MANAGEMENT *
Аннотация:
this paper examines the profound impact of digital transformation on global competitiveness and strategic management in the contemporary business landscape. Through comprehensive analysis of current research and empirical data, the study demonstrates how digital technologies are reshaping competitive dynamics across industries and nations. The study provides valuable insights for policymakers and business leaders navigating the digital economy, emphasizing the need for balanced strategies that combine technological adoption with institutional adaptation to maximize benefits while mitigating risks.
Ключевые слова:
digital transformation, global competitiveness, strategic management, digital economy, artificial intelligence, business innovation, digital divide
DOI 10.24412/2712-8849-2025-586-39-44
Digital transformation has emerged as a defining force in the XXI century global economy, fundamentally altering traditional business models, competitive dynamics, and value creation mechanisms. At its core, digital transformation represents "a fundamental change in activities, processes, competencies, and organizational models to fully leverage the opportunities and impacts of various digital technologies in a strategic and prioritized manner". This transformation extends beyond mere technological adoption to encompass profound changes in how businesses operate, compete, and create value in an increasingly interconnected digital ecosystem.The scope of digital transformation in the global economy encompasses three interrelated processes: digitization of existing activities, development of physical goods supporting the digital economy, and emergence of entirely new activities made possible by digital technologies. This expansive footprint is evident in current statistics showing that approximately two-thirds of the global population now accesses the internet, with platforms like FB boasting 3 billion active users. The digital economys contribution to GDP varies by measurement methodology, ranging from 7% to over 20% in advanced economies like the United States, with growth rates significantly outpacing the broader economy [1].The impact of these technologies on global competitiveness can be measured through various frameworks. The World Digital Competitiveness Ranking (WDCR), for instance, evaluates economies based on their capacity to adopt and leverage digital technologies for economic transformation. In 2024, Singapore led this ranking, followed by Switzerland and Denmark, demonstrating how digital capabilities correlate with competitive positioning in the global economy.A structural equation modeling analysis of 45 countries (17 Latin American and 28 European) revealed that ICT adoption explains significant variance in key competitiveness pillars: 66% of business dynamism variance in Latin America, 81% of skills variance, and 75% of product market variance [2]. These findings underscore digital transformations role as both a driver and differentiator of competitiveness across diverse economic contexts.Table 1. Impact of ICT Adoption on Competitiveness Pillars in Latin America vs. Europe [3]. Source: Adapted from Bacca-Acosta et al. (2023). The conceptual framework reveals digital transformation as a multidimensional phenomenon with varying impacts across different contexts. While developed economies tend to benefit more in terms of productivity growth (by about 25% compared to emerging economies), developing countries often experience greater employment gains from digitization. This divergence stems from structural economic differences, with developed economies relying more on domestic consumption and nontradable sectors where digitization primarily boosts productivity, while emerging economies export-oriented tradable sectors benefit more from employment effects.Strategy& estimates that digitization provided a $193 billion boost to world economic output and created 6 million jobs globally in 2011 alone. Looking forward, if emerging markets could double their Digitization Index scores for their poorest citizens over a decade, the potential global gain could reach $4.4 trillion in nominal GDP, $930 billion in cumulative household income for the poorest, and 64 million new jobs [4]. The COVID-19 pandemic accelerated digital transformation while highlighting its competitive implications. Firms with established digital capabilities adapted more successfully to remote work, supply chain disruptions, and changing consumer behaviors. This experience underscored digital transformations role in building organizational resilience - a critical dimension of long-term competitiveness.Regional analyses reveal important variations in digital transformations competitive impact. The digital revolution necessitates fundamental rethinking of traditional strategic management approaches. As digital technologies reshape industry boundaries, value chains, and competitive dynamics, organizations must develop new frameworks to navigate this transformed landscape. This section examines how strategic management theory and practice are evolving in response to digital transformation challenges and opportunities.Traditional sources of competitive advantage — scale, positioning, and static capabilities — are being supplemented or supplanted by digital-era advantages rooted in data, platforms, and adaptive ecosystems. Research by Mikalef et al. demonstrates that digital transformation enhances competitiveness through several mechanisms: enabling rational production planning, facilitating rapid response to consumer demand, increasing organizational flexibility and agility, and optimizing internal and external communication. These advantages are particularly pronounced when digital technologies are combined with strong network capabilities, as shown in entrepreneurial SMEs where digital platform capabilities significantly impact performance.The unique characteristics of digital markets — network effects, economies of scale, and data-driven feedback loops — require substantial revisions to traditional competition policy frameworks. As noted in Brookings Institution research, digital technologies have led to increasing market concentration, with frontier firms capturing most productivity gains while others stagnate. This "winner-take-most" dynamic contributes to growing inequality and requires policy interventions including [5]:1. Strengthened Antitrust Enforcement: Addressing platform gatekeepers and quasi-monopolies emerging from digital network effects.2. Data Governance Frameworks: Establishing rules for data access, portability, and interoperability to promote competition.3. Sector-Specific Regulations: Developing tailored approaches for digital platforms, AI, and other transformative technologies.Digital transformations impact on labor markets creates urgent policy challenges. Research shows that automation disproportionately affects middle-skill jobs while increasing demand for both high-skill technical roles and non-routine manual jobs.Digital transformation has emerged as a cornerstone of global competitiveness and strategic management, fundamentally altering how businesses operate, innovate, and sustain growth. The integration of advanced technologies such as AI, cloud computing, and IoT has enabled organizations to enhance operational efficiency, improve customer experiences, and foster dynamic capabilities that drive long-term success. However, the journey toward digital maturity is not without challenges, including cybersecurity risks, organizational resistance, and the need for continuous upskilling. The findings underscore that digital transformation is not merely a technological shift but a strategic imperative that requires alignment with business objectives, leadership commitment, and a culture of innovation. Companies that successfully navigate this transformation gain a competitive edge by leveraging data-driven decision-making, agile methodologies, and customer-centric models. As industries evolve, the ability to adapt to digital disruptions will determine which organizations thrive in an increasingly interconnected and fast-paced global economy.
Номер журнала Вестник науки №5 (86) том 4
Ссылка для цитирования:
He Hongjiang THE IMPACT OF DIGITAL TRANSFORMATION ON GLOBAL COMPETITIVENESS AND STRATEGIC MANAGEMENT // Вестник науки №5 (86) том 4. С. 39 - 44. 2025 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/23274 (дата обращения: 09.07.2025 г.)
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