Digital innovation and value creation in emerging economy manufacturing: A dynamic capabilities perspective
Author Identifier (ORCID)
Abstract
Purpose: This study explores how textile firms modify their business models in response to digital transformation. It examines the role of business model innovation in creating competitive advantage and generating value in the digital era.
Design/methodology/approach: A qualitative research approach was adopted, involving semi-structured interviews with thirty respondents from sixteen Pakistani textile firms. The data were analysed using thematic analysis to identify key patterns and trends in business model transformation.
Findings: The findings indicate that digital transformation drives changes in business models by focusing on removing intermediaries between stakeholders, restructuring the value chain, and enhancing engagement to create value within global supply chains. We found that the firms increasingly prioritized direct long-term relationships and engagements with their global partners while leveraging digital tools to eliminate geographical barriers. Transformative leadership plays a pivotal role in enabling business model transformation by fostering adaptability and flexibility. The findings reveal that global supply chain networks and leadership shape dynamic capabilities in the textile sector.
Practical implications: This study provides managers and policymakers with insights into leveraging digital transformation to drive business model innovation. Firms can enhance competitiveness by adopting digital strategies that optimize value creation and streamline global operations.
Theoretical implications: The study enriches the extant literature on digital transformation by proposing a framework that integrates business model innovation with dynamic capability theory. It highlights the strategic role of leadership and HR in business model adaptation.
Originality/value: This research offers a novel perspective on how digital transformation reshapes business models in the textile industry. It provides theoretical and practical implications for firms navigating digital disruption and suggests avenues for future research.
Keywords
business model innovation, digital transformation, dynamic capability theory, global value networks, value creation
Document Type
Journal Article
Date of Publication
10-1-2026
Article Number
101998
E-ISSN
18791719
ISSN
09234748
Volume
82
Publication Title
Journal of Engineering and Technology Management
Publisher
Elsevier
School
School of Business and Law
Copyright
subscription content
Recommended Citation
Malik, M., Raziq, M. M., Galvin, P., Rice, J. L., & Igoe, J. (2026). Digital innovation and value creation in emerging economy manufacturing: A dynamic capabilities perspective. Journal of Engineering and Technology Management, 82, Article 101998. https://doi.org/10.1016/j.jengtecman.2026.101998