Impact of Technology on Strategic Management in the Digital Age

1.0 Introduction

Technology refers to digital technologies, data, algorithms, and artificial intelligence that are
constantly changing and creating new competitive opportunities [1]. Strategic management
involves the process of strategizing and making decisions in response to these changing
technologies [2]. It requires rethinking the concept of technology and adopting a relational
perspective that overcomes the problems of current conceptualizations [3]. The digital age refers
to the era characterized by the influence of digital technologies on various aspects of life,
including education and organizational practices [4] [5]. In this age, organizations need to be
proactive in implementing changes and incorporating technology effectively, especially in the
field of human resource management. Incorporating technology and innovation strategy into
business strategy is crucial for achieving overall competitive advantage, productivity, and
economic growth in the digital age.

The current state of the digital age has had a significant impact on business landscapes. Digital
advertising and marketing have revolutionized the way brands and organizations promote their
products and services, utilizing various online platforms and technologies [1]. The digitalization
of various business processes, such as marketplaces, logistics, and accounting, has led to
increased efficiency and accuracy [2]. Additionally, the emergence of digital financial services
has provided convenience and speed in obtaining financial services, although it is important to
ensure that these businesses are regulated and supervised by existing laws [3]. The digital
economy, although still a relatively small direct share of the economy, is rapidly growing in
importance, with information technology having significant impacts on various sectors [4].
However, the transformation to the digital era also presents challenges, including the need for
updated change management strategies, adapting to new software and technologies, and
addressing security concerns [5].

Understanding the connection between technology and strategic management is crucial in this
context. Technology plays a significant role in developing and implementing a strategic
approach to technology management [1]. It is increasingly seen as a source of sustainable
competitive advantage [2]. Companies need to integrate technology throughout the organization
to enhance their effectiveness in technology management [3]. Strategic management choices can
have a significant impact on company performance [4]. Technology management involves
linking various disciplines to formulate strategy and achieve strategic objectives [5]. It is
essential to have managers with a background in technology education for successful integration
of strategic management and technology management. Understanding the power dimensions of
IT in strategic management and the interaction between IT applications and decision-makers is
also important. Understanding the connection between technology and strategic management is
crucial for companies to compete and succeed in technology-intensive industries.

1.1 Research Questions:

The business landscape is undergoing a fundamental transformation driven by the rapid

advancement of technology in the digital age. Artificial intelligence, big data, cloud computing,
and other digital tools are disrupting traditional industries, creating new opportunities, and
forcing organizations to rethink their approach to strategic management. In the past, strategic
management focused on long-term planning, competitive analysis, and resource allocation.
However, the fast-paced and dynamic nature of the digital age demands greater agility,
adaptability, and innovation. Organizations need to continuously embrace new technologies,
experiment with innovative business models, and redefine their competitive advantage in this
ever-evolving environment.

1.2 Problem Statement:

Despite the significant impact of technology on the business landscape, there is a critical gap in
our understanding of how organizations adapt their strategic management practices in the digital
age. Existing frameworks and approaches may not adequately address the challenges and
opportunities presented by emerging technologies. This lack of clarity creates uncertainty and
hinders organizations from effectively harnessing the full potential of technology to achieve
sustainable growth and competitive success.

Therefore, this thesis aims to address the following research questions:

 Has the digital age fundamentally transformed the practice of strategic management, and
what are the key challenges and opportunities that organizations face in adapting their
strategic frameworks and practices to thrive in this dynamic environment?
  How has the digital age's fast growth of technology influenced company strategic
management practices, and what are the important strategies and frameworks that firms
may use to successfully integrate technology and gain long-term competitive advantage?
 To what extent do the traditional frameworks of strategic management remain relevant in
the digital age, and what adjustments or new frameworks are needed to effectively guide
organizations in this dynamically evolving landscape?

By investigating this research question, this thesis seeks to:

 Develop a comprehensive understanding of the impact of technology on strategic

management in the digital age.
 Identify the key challenges and opportunities that organizations face in adapting their
strategic practices.
 Analyze and evaluate existing strategic frameworks in the context of the digital age.
 Propose new or adapted frameworks and best practices for effective strategic
management in the digital era.
 Analyze the influence of various technologies on strategic decision-making processes,
such as artificial intelligence, big data, and cloud computing.
 Assess the efficacy of various technology-driven strategic initiatives in chosen firms.
 Identify and evaluate current theoretical frameworks for comprehending the relationship
between technology and strategic management.
 Identify important technology breakthroughs' difficulties and possibilities in the context
of strategic management.
 Create advice and practical frameworks for firms to efficiently exploit technology and
improve strategic agility in the digital age.
 Contribute to the corpus of knowledge on technology-driven strategic management by
providing insights and useful discoveries for academics and practitioners.Create advice
and practical frameworks for firms to efficiently exploit technology and improve strategic
agility in the digital age.
 Contribute to the current body of knowledge on technology-driven strategic management
by providing scholars and practitioners with insights and significant discoveries.
This research will not only contribute to the academic discourse on strategic management but
also provide valuable insights and practical recommendations for organizations striving to
navigate the complexities of the digital age and achieve success in the new competitive
landscape.

2.0 Literature Review

Existing academic literature on the impact of technology on strategic management has been
reviewed in several papers. The "microfoundations movement" aims to understand how
individual actions and interactions lead to organizational outcomes in the context of technology
and innovation management [1]. Another paper conducts a systematic literature review on the
application of big data, analytics, business intelligence, and artificial intelligence to management
and strategic control, highlighting the usefulness of smart technologies in various business
functions [2]. Additionally, a study examines the Technology Analysis & Strategic Management
(TASM) Journal over the past 31 years, providing an overview of its performance aspects [3].
Reviews of strategic management research contribute to greater shared understanding and can
stimulate new research in the field [4]. Lastly, a literature review exercise identifies research
issues in the management of technology, including strategic management, technology planning,
technology transfer, and adoption of new technologies [5].

Existing academic literature on the impact of technology on strategic management has been
reviewed in several papers. The "microfoundations movement" aims to understand how
individual actions and interactions lead to organizational outcomes in the context of technology
and innovation management [1]. Another paper conducts a systematic literature review on the
application of big data, analytics, business intelligence, and artificial intelligence to management
and strategic control, highlighting the usefulness of smart technologies in various business
functions [2]. Additionally, a study examines the Technology Analysis & Strategic Management
(TASM) Journal over the past 31 years, providing an overview of its performance aspects [3].
Reviews of strategic management research contribute to greater shared understanding and can
stimulate new research in the field [4]. Lastly, a literature review exercise identifies research
issues in the management of technology, including strategic management, technology planning,
technology transfer, and adoption of new technologies [5].
Emerging trends and challenges in technology-driven strategic management include the need for
emerging economies to learn from other economies in terms of accessing new technologies and
bridging the technology divide [1]. The banking industry is transforming from traditional
systems to high-end technology, requiring strategic management to prepare technology readiness
(TR) for customer-focused services [2]. The book "Neostrategic Management" integrates cutting-
edge research on topics such as corporate performance, governance, strategic leadership,
technology, and internationalization, emphasizing the changing global economy's role in
strategic management [3]. To compete effectively in the global marketplace, companies must
integrate technology management with strategic planning, which may involve reorganizing
operations, multifunctional product development, and collaboration with other companies [4].
While the strategic management of technology is crucial for improving long-term performance,
there is a need for a critical perspective that considers broader social and environmental issues
when linking technology to corporate strategy [5].

Organizations face several challenges in implementing technology-driven strategic management.

These challenges include disappointing outcomes in effectively implementing new technology
innovation (NTI) [1], the increasingly complex internal and external information and knowledge
environment [2], power struggles, conflicting goals, and discrepant events within the
organization [3], failure to link strategic planning efforts to other critical decision-making
processes [4], and the need to adapt to radical changes in mobility needs and develop new
vehicle architectures and mobility solutions [5]. These challenges highlight the importance of
senior leadership in facilitating the NTI process, constructing AI-based socio-technical support
systems, aligning interests and motivating contributions to knowledge work, and defining and
implementing technology strategies within the existing organizational environment.

Organizations can respond to these trends and challenges by integrating creativity into their
systems to provide dynamic internal and external responses that go beyond the current
managerial tool-kit [1]. They should also be flexible and ready to adjust to the external
environmental changes that have a huge impact on their sustainability [2]. Additionally,
organizations must focus on conserving and improving natural, social, and financial resources
through eco-efficient and eco-effective innovations [3]. They should also recognize the
importance and limits of the various capitals they rely on and view themselves as part of
dynamic environments that they affect and which affect them [4]. Furthermore, organizations
should embrace big data and focus on the ever-increasing volume, variety, velocity, veracity, and
complexity of information that forms big data [5]. Finally, organizations can address these
challenges by shifting to a purpose-driven approach and adopting integrated thinking, which
requires clear goals and reflexivity.

Existing research on technology and strategic management has identified several gaps that
warrant further investigation. One gap is the need for a deeper understanding of the role of
information technology (IT) in strategic management and how IT applications interact with
decision makers in this process [1]. Another gap is the convergence of the fields of strategic
management, technology strategy, and technology management, which calls for an integrated
perspective in studying strategic technology management [2]. Additionally, there is a need for
more theory-driven research that explores the power dimensions of IT in strategic management
and the power-dependence relationship between strategic management and IT applications [3].
Furthermore, there is a lack of comprehensive reviews that synthesize existing research and
stimulate new research in the field of strategic management [4]. These gaps provide a rationale
for further investigation to enhance our understanding of the relationship between technology
and strategic management.

2.1 Key challenges and opportunities for strategic management in the digital age

Strategic management in the digital age faces both challenges and opportunities. The challenges
include the need to adapt to rapid technological developments and the changing business
environment [1] [2]. Other challenges include automation, security threats, lack of clear rules,
and skills challenges [3]. However, there are also opportunities for strategic management in the
digital age. These opportunities include the potential for innovation, growth in the creative
sector, increased internet usage, and reduction in trade costs [4]. Digital transformations can
offer efficiencies, innovations, and competitive advantages to organizations [5]. Additionally, the
digital economy allows for the creation of customer-centric strategies and the utilization of data
and ideas on a global scale. Overall, strategic management in the digital age requires navigating
these challenges while leveraging the opportunities presented by digitalization and technological
advancements.
2.2 Strategic management and adaptation to the digital age

Strategic management needs to be adapted to the digital age by developing new methodological
fundamentals and approaches [1]. The digital age poses challenges and difficult conditions for
organizations, requiring them to plan and execute their digital transformation strategies [2]. The
principles and methods of strategizing used in the digital environment should be refined and
extended [3]. This includes developing and applying tools that allow enterprises to respond to
changes quickly, such as adaptive strategies and agile roadmaps [4]. Higher education
management can draw lessons from obstacles faced in organizational change to tackle the
challenges of digital transformation [5]. In the hotel industry, adapting revenue and digital
strategies is crucial to maintaining market share, room rates, revenue, and profits. Overall,
strategic management in the digital age requires a holistic approach, the involvement of multiple
stakeholders, and the ability to navigate through various methods and tools.

2.3 Digital technologies and improve strategic management

Digital technologies can be used to improve strategic management by providing effective

strategic management tools, analyzing collected data, and enabling risk management methods
[1]. They can also help in creating the right strategic management model to evaluate
opportunities and minimize risks during digital transformation [2]. In the context of agro
farming, digital technologies can be used to develop strategies based on information support for
business processes, leading to increased competitiveness and the formation of a digital
agribusiness ecosystem [3]. In the context of industrial enterprises, digital transformation
contributes to the development of new business models, innovation, and socioeconomic spheres,
making digital strategy tools crucial for strategic management [4]. Additionally, digital
technologies, such as enterprise resource planning (ERP) systems, can integrate, synchronize,
and centralize corporate data, improving organizational efficacy and corporate strategy [5].

How can managers use technology to improve their strategic planning and decision-making?

Managers can use technology to improve their strategic planning and decision-making in several
ways. Firstly, leveraging information technology during the planning process can enhance
strategic planning efforts and improve overall competitive position [1]. Secondly, the
implementation of enterprise resource planning (ERP) systems can increase the effectiveness of
decision-making by providing managers with access to relevant and integrated information [2].
Additionally, the use of database management systems (DBMS) can simplify management in
small and medium-sized enterprises (SMEs) by standardizing practices and increasing overall
efficiency [3]. Furthermore, technology tools such as PID control can be utilized in deterministic
control systems to ensure accurate mathematical modeling and reliable control [4]. By
incorporating these technological tools and systems, managers can enhance their decision-
making processes and improve the overall performance of their organizations.

2.4 Best practices for using technology to improve strategic planning and decision-making

Technology plays a crucial role in improving strategic planning and decision-making in various
fields. It has become embedded in daily tasks, enabling better communication, data collection,
analysis, and presentation. Planners can leverage new technologies to enhance the planning
process, engage stakeholders, and utilize real-time big data for informed decision-making [1]. In
higher education institutions, technology and data mining techniques can be used to create,
manage, protect, and disseminate knowledge effectively, leading to better decision-making,
curriculum development, and research [2]. Open-source dashboard technology and intelligent
decision support systems (IDSS) can be integrated to improve the quality and effectiveness of
higher education systems. This integration allows decision-makers to measure, control, and
manage organizational performance more effectively, leading to improved student performance,
infrastructure management, and strategic planning [3]. By aligning teaching processes and
materials with the graduate employment market needs, universities can use technology to support
strategic decision-making in academic curriculum planning, resulting in improved reputation and
better student selection [4].

Adapting strategic management to the digital age has significant implications for businesses,
governments, and individuals. In the business context, the rapid development of technology and
the digital economy necessitate the modification of traditional strategic management approaches
[1]. Companies need to understand the impact of the digital economy on their management
systems and be prepared to change their approaches and mechanisms accordingly [2]. Different
companies with varying experiences, capabilities, and expectations of digital transformation
require different strategic management approaches [3]. For governments, the introduction of
digital technologies has a profound impact on the strategic planning system, requiring the
coordinated development of the public administration system and nationwide information and
control systems [4]. Individuals, particularly leaders, play a crucial role in organizations' ability
to adapt to digital change. They need to be flexible, adaptive, and focused on collaborative
efforts to navigate the challenges posed by digitalization [5].

3.0 Methodology

3.1 Research Design

A multi-method approach will be employed to gather diverse data:

Secondary data will be procured from authoritative sources like industry reports, academic
journals, and statistical databases. Trends in technology adoption, strategic management
practices, and organizational performance in the digital age will be analyzed.

Case studies will be conducted on [Specific organizations]. Their technology-driven strategic

initiatives, successes, and challenges will be scrutinized for deep insights.

Expert interviews will be held with esteemed academics, industry practitioners, and technology
innovators. Their perspectives on the evolving landscape and its impact on strategic management
will be gleaned.

Surveys will be administered to a targeted audience of managers and executives across various
industries. Their experiences with technology integration, perceived opportunities and
challenges, and adopted strategic frameworks will be gathered and analyzed.

3.2. Data Collection:

Access to relevant databases like OECD, World Bank, industry reports, and academic journals
will be secured.

Case study data will be acquired through company reports, press releases, internal documents,
interviews with key personnel, and site visits (if feasible).

Expert interviews will be conducted in a semi-structured format, ensuring anonymity and ethical
considerations.

Surveys will be meticulously designed and administered, accounting for potential biases and
maximizing response rates.
3.3 Data Analysis

Quantitative data from secondary sources and surveys will be subjected to rigorous statistical
analysis using appropriate statistical tools and methodologies. Descriptive statistics, hypothesis
testing, and regression analysis will be employed to draw significant conclusions.

Qualitative data from interviews and survey responses will be meticulously analyzed using
thematic analysis techniques. Recurring themes, patterns, and insightful narratives will be
identified and interpreted.

3.4. Validity and Reliability

Triangulation of data from quantitative and qualitative sources, and across multiple research
methods, will be employed to fortify the validity and reliability of findings. Member checking
will involve sharing key findings with research participants for feedback and validation of
interpretations. A meticulous audit trail will be maintained, documenting data collection,
analysis, and interpretation procedures for transparency and replicability.

3.5. Ethical Considerations

Informed consent and anonymity will be guaranteed for all participants in interviews and
surveys.

Adherence to data privacy regulations and established ethical guidelines for research will be
paramount. Limitations and potential biases in data and analysis will be openly acknowledged
and discussed.

3.6. Research Timeline and Resources

A realistic and comprehensive timeline will be developed, encompassing each research phase
from data collection to analysis and thesis writing.

Necessary resources, including software, databases, research assistants, and travel expenses, will
be identified and secured.

3.7. Data Presentation

Key findings will be presented in a clear, concise, and visually appealing manner using tables,
charts, and graphs for quantitative data.
Rich qualitative data excerpts will be strategically embedded to illustrate key insights and enrich
the narrative.

Ethical representation of participant voices and respectful anonymity will be maintained

throughout the presentation.

3.8. Conclusion and Implications

A comprehensive synthesis of key findings from the research will be provided, connecting
quantitative and qualitative insights.

Definite conclusions about the impact of technology on strategic management in the digital age
will be drawn.

Practical recommendations and theoretical implications for organizations adapting to the

evolving landscape will be offered.

3.9. Expected Outcomes

Your study could shed light on new ways that technology is impacting strategic management, or
reveal unexpected relationships between variables.

Practical recommendations: You could make recommendations for how organizations can better
leverage technology to improve their strategic management practices.

Theoretical contributions: You could contribute to existing academic literature by developing

new theories or frameworks for understanding the role of technology in strategic management.

Change in policy or practice: Your findings could inform policy changes or lead to new industry
best practices for technology integration in strategic management.