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Exploring how incumbent firms deal with digital challengers

Thesis (PhD)--University of Pretoria, 2024.

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Other Authors: Habermann, Harald
Format: Thesis
Language:English
Published: University of Pretoria 2025
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access_status_str Open Access
author2 Habermann, Harald
author_browse Habermann, Harald
author_facet Habermann, Harald
collection Thesis
dc_rights_str_mv © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Thesis (PhD)--University of Pretoria, 2024.
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institution University of Pretoria (South Africa)
language English
last_indexed 2026-06-10T12:39:56.028Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2025
publishDateRange 2025
publishDateSort 2025
publisher University of Pretoria
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spelling oai:repository.up.ac.za:2263/102622 Exploring how incumbent firms deal with digital challengers Habermann, Harald ichelp@gibs.co.za Oladejo, Ayobami UCTD Firms Digital challanges Thesis (PhD)--University of Pretoria, 2024. The empirical study explored how incumbent firms deal with digital challengers by identifying the micro-foundations of dynamic capabilities. Extant literature mainly focussed on resource ownership as a consideration when incumbent firms respond to challengers. The resource-based theory proposes the ownership of valuable, rare, inimitable, and non-substitutable resources to achieve competitive advantage. In contrast, dynamic capabilities do not only focus on acquiring resources but also exploiting external resources and the orchestration of both. The study followed a qualitative multiple case study method of inquiry due to the nascent state of the dynamic capabilities literature and the explorative nature of the research questions. Four incumbent firms in telecommunications and financial services that have responded to digital challengers were selected as case companies. The study contributes to theory by identifying twenty-eight practices aggregated into eight micro-foundations of the dynamic capabilities of sensing, seizing and transforming. Out of the twenty-eight practices, seven were unique and not identified in the micro-foundations of DC literature relevant to business model innovation. A comprehensive framework of thirty-five practices aggregated into twelve micro-foundations was developed by integrating more practices and micro-foundations from two relevant literatures. Furthermore, the study identified Sixteen inhibitors to dynamic capabilities when incumbent firms deal with digital challengers. Company executives will benefit from the comprehensive framework. It will open discussions on looking beyond resource ownership and focusing on internal/external resource orchestration and agility. The study reveals that the incumbent companies struggled to deal with the digital challengers when focused on the resource-based approach. The need for good sensing skills to pre-empt digital competition threats and opportunities and be agile enough to react was highlighted. The study also revealed that incumbents must adequately transform their business models to respond to digital challengers not just from the usual customer/products perspectives but also from an investment attractiveness point of view. Gordon Institute of Business Science (GIBS) PhD Unrestricted Gordon Institute of Business Science (GIBS) SDG-09: Industry, innovation and infrastructure 2025-06-03T11:39:20Z 2025-06-03T11:39:20Z 2025-05-05 2024-04 Thesis * A2025 http://hdl.handle.net/2263/102622 en © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
Firms
Digital challanges
Exploring how incumbent firms deal with digital challengers
title Exploring how incumbent firms deal with digital challengers
title_full Exploring how incumbent firms deal with digital challengers
title_fullStr Exploring how incumbent firms deal with digital challengers
title_full_unstemmed Exploring how incumbent firms deal with digital challengers
title_short Exploring how incumbent firms deal with digital challengers
title_sort exploring how incumbent firms deal with digital challengers
topic UCTD
Firms
Digital challanges
url http://hdl.handle.net/2263/102622