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Digitalization and organizational capabilities: a mechanism-based integrative review
Sen Jia1, Khai Wah Khaw1, Yiqi Zhou2
1School of Management, University of Science Malaysia, George Town, Malaysia.
Frontiers in Psychology
|May 18, 2026
Summary
Digitalization transforms organizational capabilities through enabling, cognitive, collaborative, and adaptive mechanisms. The proposed Digital Capability System (DCS) offers a new framework for understanding this evolution.
Area of Science:
- Management Science
- Information Systems
- Organizational Studies
Background:
- Digitalization's impact on organizational capabilities is not fully understood.
- Existing research often lacks a mechanistic perspective.
Purpose of the Study:
- To identify and synthesize the mechanisms through which digitalization shapes organizational capabilities.
- To develop a comprehensive framework for understanding digital capability evolution.
Main Methods:
- Mechanism-based systematic literature review of 116 core studies (2015-2024).
- Structured multi-stage screening and classification of identified mechanisms.
Main Results:
- Identified four mechanism families (enabling, cognitive, collaborative, adaptive) and twelve sub-mechanisms.
- Revealed three dominant causal chains: enabling → adaptive, cognitive → adaptive, and collaborative → adaptive.
- Proposed the Digital Capability System (DCS) conceptualizing capability evolution as a recursive, multi-level, boundary-spanning system.
Conclusions:
- The study advances a mechanism-based, multi-level perspective, moving beyond linear models.
- Identified research gaps in static infrastructure treatment, innovation measures, and cross-level inconsistencies.
- Provides an agenda for future research and practical guidance for designing digitally enabled capability systems.
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