Market orientation, restructuring and collaboration: The impact of digital design on organizational competitiveness

Abstract

Design is commonly understood as a key element of products, contributing to their distinctiveness, usability and aesthetics. The success of a product is increasingly related to the user experience or the aesthetics of the user interface, meaning that design is increasingly important in the digital environment. The shift in competitive focus to the customer induced by digital design encourages companies to innovate and can also lead to changes in internal operations, market orientation and the reconfiguration of external collaboration procedures. This dimension of digital design‐induced effects has to date seen very little research. The objective of this study is to investigate how digital design‐induced changes in market orientation, internal restructuring and external cooperation affect firms' competitive orientation. The simultaneous equation framework was applied to a survey of 515 user interface and experience designers from France. Our results suggest that market orientation is not the only channel through which digital design influences firm competitiveness. Digital design leads to organizational change and the reconfiguration of external relationships that directly and indirectly help companies build competitive advantages and increase customer satisfaction.