A Research Paper on the Design of a Business Model Framework for Digital Transformation Adoption

Abstract

This study aimed to develop a novel business model framework tailored for implementing digital transformation within organisations, necessitating a detailed examination of key components. The investigation commenced with an in-depth analysis of digital transformation integration within the business models of the top 100 organisations listed on the Johannesburg Stock Exchange (JSE) from 2020 to 2022. JSE-listed firms were chosen due to their status as industry benchmarks, offering insights into digital best practices, supported by the International Integrated Reporting Council's (IIRC) International < IR > Framework. The study sought to validate the assertion that digitally transformed business models correlate with improved organisational performance, employing the CAMELS Rating System model to evaluate performance. Despite challenges from the COVID-19 pandemic, findings consistently demonstrated high levels of digital transformation adoption within the organisations studied, with none classified as having poor or moderate adoption. Subsequently, the study meticulously analysed the resulting scores for digital transformation adoption and overall performance, using correlation coefficients to examine the relationship between these variables. Although the findings indicated relatively weak correlations, suggesting the need for further investigation, they were consistent with established literature highlighting the benefits of innovative and strategically aligned business models. These initial findings were seen as encouraging and could potentially stimulate ongoing research in this field. Building on these findings, the study developed the "Digital Evolution Navigator Framework," drawing from theoretical foundations including Resource Based Theory, Diffusion Theory of Innovation, Theory of Planned Behaviour, Rational Choice Theory, Social Cognitive Theory, and the Unified Theory of Acceptance and Use of Technology. This framework aims to equip organisations with tools and strategies to navigate digital transformation effectively, empowering them to enhance adaptability and competitiveness in the digital era.