Impact of Digital Transformation on Business Model Innovation in Manufacturing Companies in Ghana: Mediating Role of Risk Management

Abstract

The dynamic landscape of modern business necessitates organizations to embrace digital transformation and innovate their business models for sustainable growth and competitiveness. In light of this context, this conceptual paper aims to establish the impact of digital transformation on business model innovation through the mediating influence of risk management. The study integrates the perspectives of the socio-technical systems theory and the upper echelon theory to establish the mediating role of risk management in the relationship between digital transformation and business model innovation. At the heart of this conceptual paper’s originality lies the integration of the socio-technical systems theory and the upper echelon theory to provide a nuanced understanding of how digital transformation, risk management, and business model innovation converge within the manufacturing sector in Ghana. By adopting these theoretical lenses, this study not only explores the distinct roles of technological and human elements but also delves into the cognitive dimensions of leadership that influence strategic decisions surrounding digital transformation and risk management. This synthesis contributes to the existing body of knowledge by offering a comprehensive framework that elucidates how these multifaceted elements interact to shape the trajectory of business model innovation, specifically within the context of a developing economy. Moreover, the paper’s focus on the manufacturing sector in Ghana adds a distinctive perspective, as empirical investigations in this region are relatively limited. By centering on this unique context, the research aims to uncover insights that are applicable not only to the manufacturing sector but also to other industries facing similar challenges in the ever-evolving digital landscape. Consequently, this paper’s originality lies in its holistic framework, theoretical synthesis, and the contextual lens it employs, all of which collectively contribute to a deeper understanding of how manufacturing organizations in Ghana can strategically navigate digital transformation, optimize risk management practices, and foster innovative business model evolution.

Keywords: Digital transformation, risk management, business model innovation, digitalization, digital technologies.

DOI: 10.7176/EJBM/16-5-04

Publication date: June 30th 2024