Sensing and responsiveness: digital capabilities to face the challenges of the digital economy

Abstract

Purpose of the study: Examine the relationship between digital capabilities and the challenges of the digital economy.Methodology/approach: Systematic literature review.Main results: Present a framework with the relationship between the challenges of the Digital Economy and Digital Capabilities.Theoretical/methodological contributions: The contributions of this article include a deeper understanding of this recent digital phenomenon, presenting the challenges of the digital economy and advancing the notion of digital capabilities around Information Systems.Relevance/originality: The digital economy continually reshapes how consumers and firms communicate and collaborate through digital technologies, creating significant changes and impacts in digital transformation. The digital economy offers many opportunities for business improvement and diversification. Thus, for a firm to be agile and adapt rapidly to technological evolution, we argue that it is necessary to develop new capabilities, known as digital capabilities, particularly sensing and responsiveness. These capabilities allow firms to develop, mobilize, and use organizational resources effectively and improve their business processes during digital transformation.

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