Short answer

Prioritize and significantly invest in foundational technology infrastructure as the primary enabler for digital transformation and subsequent business model innovation in emerging market contexts.

Field: Innovation & Design
Source: Corporate and Business Strategy Review (2025)
Method: Quantitative research using Structural Equation Modeling (SEM).
Sample: 319 firms
Evidence: Strong effect

Investing in robust technology infrastructure is the most significant driver for successful digital transformation, which subsequently fuels business model innovation. This innovation & design research insight is drawn from a 2025 study published in Corporate and Business Strategy Review. Using Quantitative research using structural equation modeling (sem). with 319 firms, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize and significantly invest in foundational technology infrastructure as the primary enabler for digital transformation and subsequent business model innovation in emerging market contexts.

Study

Innovation & DesignNew This WeekStrong effect

Technology Infrastructure Investment is Key to Digital Transformation Success in Emerging Economies

Investing in robust technology infrastructure is the most significant driver for successful digital transformation, which subsequently fuels business model innovation.

Corporate and Business Strategy Review · 2025

Key Findings

01Technological readiness, organizational capabilities, and environmental pressures significantly predict digital transformation levels.
02Digital transformation levels significantly influence business model innovation.
03Technology infrastructure investment is the strongest predictor of digital transformation success.

Application

Design takeaway

Prioritize and significantly invest in foundational technology infrastructure as the primary enabler for digital transformation and subsequent business model innovation in emerging market contexts.

How to apply

When developing digital transformation strategies for emerging markets, conduct a thorough assessment of existing technology infrastructure and allocate substantial resources for its enhancement.

Project actions

01When researching digital transformation, consider the specific context of emerging economies.
02Focus on identifying key investment areas, such as technology infrastructure, that yield the greatest impact.

Method & Evidence

AimTo investigate how technological, organizational, and environmental factors influence digital transformation levels and subsequent business model innovation in emerging economies.

MethodQuantitative research using Structural Equation Modeling (SEM).

ProcedureA conceptual model integrating the Technology-Organization-Environment (TOE) framework and business model innovation theory was developed. Data from 319 firms in Vietnam were collected using validated scales and analyzed via SEM.

Sample319 firms

ContextEmerging economies, multiple industries.

Variables

IV["Technological readiness","Organizational capabilities","Environmental pressures","Technology infrastructure investment"]

DV["Digital transformation levels","Business model innovation"]

CV["Industry sector","Firm size"]

Strengths & Limitations

Strengths

+Integration of established theoretical frameworks (TOE and BM innovation).
+Use of validated scales and robust statistical analysis (SEM).

Limitations

A single-country focus limits generalizability. A cross-sectional design means causality cannot be definitively established.

Reliability & validity

The study used bootstrap analysis to confirm the model's reliability and the validity of hypothesis testing, indicating good internal consistency and construct validity.

Think critically

How might the specific cultural or regulatory environments of different emerging economies influence the relationship between technology infrastructure investment and digital transformation success?

Design Principles

"Invest in foundational technology infrastructure to enable digital transformation and business model innovation."

For organizations operating in or entering emerging markets, understanding the primary levers of digital transformation is crucial for competitive advantage. Prioritizing technology infrastructure investment can lead to more effective adoption of digital technologies and the development of novel business models.

What This Means for Your Design

To make your business digital and create new ways of doing business, the most important thing to do in developing countries is to spend money on good technology systems. Other things like your company's readiness and outside pressures also matter.

How to use in your project

1.Reference this study when discussing the importance of infrastructure investment in digital transformation strategies.
2.Use the findings to justify resource allocation in your design project's proposal.

Add to My Project

Quick Cite

Paragraph starter

Research in emerging economies indicates that significant investment in technology infrastructure is the most potent driver of successful digital transformation, which in turn enables business model innovation. This underscores the importance of prioritizing foundational technological capabilities when developing strategies for digital advancement in these contexts.

Source

Corporate and Business Strategy Review

Digital transformation strategy and business models: Exploring the relationships in emerging economies

journal · 2025

View source

Questions About This Research

What does the research say about technology infrastructure investment is key to digital transformation success in emerging economies?: Prioritize and significantly invest in foundational technology infrastructure as the primary enabler for digital transformation and subsequent business model innovation in emerging market contexts. Evidence: Corporate and Business Strategy Review (2025).
Why does "Technology Infrastructure Investment is Key to Digital Transformation Success in Emerging Economies" matter for design?: For organizations operating in or entering emerging markets, understanding the primary levers of digital transformation is crucial for competitive advantage. Prioritizing technology infrastructure investment can lead to more effective adoption of digital technologies and the development of novel business models.
How can designers apply this research?: Prioritize and significantly invest in foundational technology infrastructure as the primary enabler for digital transformation and subsequent business model innovation in emerging market contexts.
What were the main findings?: Technological readiness, organizational capabilities, and environmental pressures significantly predict digital transformation levels.. Digital transformation levels significantly influence business model innovation.. Technology infrastructure investment is the strongest predictor of digital transformation success.
What research method was used?: Quantitative research using Structural Equation Modeling (SEM). with 319 firms.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2025 journal from Corporate and Business Strategy Review.
What should I do differently in my next project?: When developing digital transformation strategies for emerging markets, conduct a thorough assessment of existing technology infrastructure and allocate substantial resources for its enhancement.
What are the limitations?: The study is limited to a single country (Vietnam) and uses a cross-sectional design, which may not capture longitudinal transformation patterns.