Making the case for digital transformation: Digital entrepreneurship and on-demand service innovation

Making the case for digital transformation: Digital entrepreneurship and on-demand service innovation

Summary

This empirical paper examines how digital entrepreneurship drives on-demand service innovation and links that innovation to firm performance. Using a sample of South Korean enterprises, the authors show that appointing a dedicated person responsible for digital transformation significantly improves a firm’s ability to innovate service offerings and, ultimately, its performance. The study presents a simplified model of digital transformation and draws generalisable conclusions to guide future empirical work.

Key Points

1. Digital entrepreneurship is a critical enabler of on-demand service innovation.
2. Having a dedicated individual explicitly responsible for digital transformation positively affects service innovation outcomes.
3. Improved on-demand service innovation translates into better firm performance in the sample studied.
4. The study uses empirical data from South Korean firms and offers a simplified, testable model for digital transformation.
5. Findings provide a foundation for further empirical research and practical recommendations for organisations planning digital initiatives.
6. No conflicts of interest were reported; an earlier version appeared in the 57th Hawaii International Conference on System Sciences proceedings.

Content summary

The paper situates digital transformation within entrepreneurship research and operationalises digital entrepreneurship as an organisational capability that shapes innovation strategy. Through statistical analysis of survey/firm-level data (South Korea), the authors identify a clear path: digital entrepreneurship activity and digital orientation lead to on-demand service innovation, which in turn improves firm performance. One practical implication is that firms should consider assigning clear responsibility for digital initiatives rather than leaving them diffuse across roles.

Context and Relevance

This work is relevant to managers, policymakers and researchers interested in how digital change becomes an engine for service innovation. It links a managerial action (appointing a digital-transformation lead) with measurable innovation outcomes, aligning with broader trends where services are personalised and delivered on-demand via digital platforms. The findings echo current industry shifts towards roles like Chief Digital Officer and digital product managers, reinforcing the value of explicit digital leadership in driving tangible business results.

Author style

Punchy and direct: the authors focus on a tight, evidence-backed claim — that concrete digital leadership and entrepreneurial orientation materially affect service innovation and firm performance. If you’re involved in strategy or research on digital change, the paper delivers a clear, actionable link between organisational choices and innovation outcomes.

Why should I read this

Quick lowdown: if you’re thinking about who should ‘own’ digital in your organisation or whether to hire a dedicated digital lead, this paper gives evidence that it actually matters. Short, evidence-led and practical — we’ve saved you the full read but this one’s worth a look if you steer digital strategy or run innovation projects.

Source

Source: https://www.tandfonline.com/doi/full/10.1080/00472778.2024.2424807?af=R