Drivers of digital transformation to foster digital service innovation and sustainable competitive advantage in China

This study explores the key drivers of digital transformation (DT) and their impact on digital service innovation (DSIN) and sustainable competitive advantage among online retailers in China. Integrating organizational ambidexterity theory with the technology-organization-environment framework, data from 388 survey responses were analysed using SPSS and AMOS. Results show that digital infrastructure, technological capability, customer tech savviness, and competitive pressure positively influence DT. DT enhances exploitation and exploration, which contribute to competitive advantage. Additionally, customer and cross-functional coordination moderate these effects, emphasizing the need for alignment in digital initiatives. Findings offer strategic insights for advancing digital innovation in the retail sector.