The Relationship of Digital Transformation and Technology Orientation with Business Model Innovation: The Moderating Role of Competitive Intensity among Employees of Government-Owned Companies in Kermanshah Province

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Keywords:

 Digital Transformation, Technology Orientation, Business Model Innovation, Competitive Intensity

Abstract

Objective: This study aimed to examine the relationships of digital transformation and technology orientation with business model innovation and to determine the moderating role of competitive intensity among employees of government-owned companies in Kermanshah Province.

Methods and Materials: This applied study employed a descriptive, cross-sectional survey design. The statistical population consisted of approximately 1,500 employees and managers of government-owned companies and public organizations in Kermanshah Province who were involved in digital transformation, technological development, or organizational process redesign. Using Cochran’s formula and proportional stratified random sampling, 306 participants were selected. Data were collected using four 15-item questionnaires measuring digital transformation, technology orientation, business model innovation, and competitive intensity on a five-point Likert scale. Content, convergent, and discriminant validity were assessed, and reliability was examined using Cronbach’s alpha, rho_A, and composite reliability. Data were analyzed using SPSS version 26 and SmartPLS version 4 through partial least squares structural equation modeling.

Findings: Digital transformation had a positive and significant effect on business model innovation (β=0.391, t=6.982, p<0.001). Technology orientation also significantly predicted business model innovation (β=0.314, t=6.038, p<0.001). Competitive intensity had a direct positive effect on business model innovation (β=0.176, t=4.000, p<0.001). The interaction between digital transformation and competitive intensity was significant (β=0.142, t=2.958, p=0.003), as was the interaction between technology orientation and competitive intensity (β=0.119, t=2.587, p=0.010). The model explained 63.8% of the variance in business model innovation. Predictive relevance was 0.402, and the standardized root mean square residual was 0.061.

Conclusion: Digital transformation and technology orientation enhance the capacity of government-owned companies to redesign value creation and service delivery, while competitive intensity strengthens the conversion of digital and technological capabilities into business model innovation.

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Mousavi, Z. A.-S., & Boroumand, S. (1406). The Relationship of Digital Transformation and Technology Orientation with Business Model Innovation: The Moderating Role of Competitive Intensity among Employees of Government-Owned Companies in Kermanshah Province. Dynamic Management and Business Analysis, 1-25. https://dmbaj.org/index.php/dmba/article/view/412

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