The effects of digital business strategy on the collaboration performance of companies: the moderating effect of digitally enabled performance measurement

PurposeDigital transformation shapes industries and influences the forms of collaboration between companies. This study aims to investigate digital business strategy as a key to facilitating collaboration beyond organizational boundaries.Design/methodology/approachThe study focuses on the connection between digital business strategy and collaboration performance. The authors identify five types of digital business strategy elements based on the literature: development, objectives, resources, management capabilities, and digital leadership. The authors then studied the implications of these elements for collaboration performance using a survey. The study’s empirical data were collected from manufacturing and service companies, and 202 valid responses were received. The implications of the research elements were tested through regression analysis, which included the moderating effects of digitally enabled performance measurement.FindingsThe theoretical research framework identifies digital business strategy as a key determinant of collaboration performance, thus advancing the understanding of how companies can utilize digital business strategies and achieve enhanced collaboration performance. The results also show that the effect of digital business strategy on collaboration performance may be moderated by digitally enabled performance management.Practical implicationsThe results suggest that management capabilities associated with digital strategy are a crucial element in positively influencing collaboration performance. Further, digital strategy-related resources can be better managed with digitally enabled performance measurement system, which is reflected in improved collaborative performance. Thus, companies should invest in management capabilities and connect their digital business strategies and performance measurement systems to develop collaboration in digital transformation.Originality/valueThe study is among the first to translate an empirical understanding of the digital transformation of small and medium-sized companies into a conceptual framework of a digital business strategy.