GAINING A STRATEGIC EDGE: EXPLORING DYNAMIC CAPABILITIES IN THE DIGITAL EVOLUTION OF THE DAIRY SECTOR

Abstract

In the rapidly evolving landscape of today's business environment, characterized by cloud computing, big data, and artificial intelligence, traditional enterprises are compelled to adapt by enhancing their dynamic capabilities and accelerating digital transformation. The Chinese government's focus on vigorously developing the digital economy and supporting the digital transformation of industries underscores the strategic importance of embracing digital technologies. Dairy enterprises, being vital to people's lives and facing increased industry competition, must harness digital transformation to improve their competitiveness. Yili Group, a leading dairy company in Asia and among the top five globally, has been at the forefront of digital transformation in China's dairy industry, achieving notable business growth through its digital initiatives. This study delves into Yili Group's journey through the digital age, examining how it cultivated dynamic capabilities, the specific types of dynamic capabilities developed, and their impact on the entire dairy industry chain. Additionally, the study provides a nuanced perspective on the dimensions of dynamic capabilities within the context of digital transformation, contributing to a deeper understanding of relevant theories.