Toward digitalization strategic perspective in the European food industry: non-linear nexuses analysis

Abstract

Purpose

Organizations deal with digital technologies to achieve their strategic goals. The shift toward digitization is a major challenge because it requires companies to create a digital outlook that influences organizational design. As a result, investigation of institutional theory and entrepreneurial orientation theory in the European food industry has become the focus of research in recent times.

Design/methodology/approach

To this end, data were collected from 83 companies related to the food industry in the European context. By applying a hybrid phase of the partial least squares structural equation modeling (PLS-SEM) and artificial neural network (ANN) methods, this study captured the causal–non-linear relationships among the study constructs.

Findings

The findings revealed that the variables of institutional theory and entrepreneurial orientation theory affect the adoption of the digital strategy. There is also a dual interaction role for e-business capabilities and digital transformation. The results of non-linear relationships confirmed that digital strategy adoption is highly influenced by digital transformation, followed by risk-taking, digital leadership, e-business capabilities, organizational agility, proactiveness and innovativeness.

Research limitations/implications

The authors provided significant implications for practitioners and academics about the most influential determinants of digital strategy – businesses must move swiftly toward digitization across its various units to achieve their objectives. An organization’s leadership must realize that equipping the employees with necessary skills is the first step toward digitalization.

Originality/value

The current study underscores the digital strategy, which is usually an overlooked area of investigation, in the food industry. The study identifies some important predictors of digital strategy adoption with the interaction’s role of digital transformation and e-business capabilities. Such relationships have been rarely discussed. In addition, the adoption of a hybrid SEM-AAN approach makes the study an original one.