Author: Dr. Ashima Verma

Abstract
In an increasingly volatile and digitally disrupted global economy, organizations are compelled to adopt digital transformation (DT) not merely as a technological upgrade but as a strategic capability for sustaining global competitiveness. This study examines how digital transformation contributes to global competitive advantage (GCA) by examining the mediating roles of strategic orientation, innovation capability, and organizational agility. Drawing on the Dynamic Capabilities Theory and the Resource-Based View, the research conceptualizes DT as a capability that enables firms to overcome cross-border operational challenges such as geographic distance, information asymmetry, and coordination complexity. A quantitative survey was conducted among 246 managers from multinational firms operating in technology and service-based industries. Structural Equation Modeling (SEM) was used to test the proposed relationships. The findings reveal that digital transformation significantly enhances global competitive advantage both directly and indirectly through organizational capabilities. Among the mediating factors, organizational
agility emerged as the strongest predictor, indicating that the ability to rapidly respond to global market volatility is more critical than innovation alone in digitally enabled environments. The study contributes to the digital strategy literature by highlighting how firms leverage digital technologies to mitigate international market barriers and build
sustainable competitive advantages in global markets.

Published in:  Journal of Global Information and Business Strategy (JGIBS), January-December 2025 (Volume-17, Number-1, 2025)

Keyword: Digital Transformation | Global Competitive Advantage | Strategic Orientation | Innovation | Organizational Agility | Resource-Based View | Dynamic Capabilities

DOI: 

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