The impact of environmental dynamism and board digital expertise on the method and scope of a firm's strategic change

We address the lack of understanding regarding the factors that drive strategic change (SC) in firms amidst unexpected and complex transformations. Our study examines both internal and external factors and dissects SC into its main strategic directions: method and scope. Drawing from resource dependence theory (RDT) and dynamic managerial capabilities (DMC), we argue that environmental dynamism and board digital expertise, as well as their interaction, play significant roles in the method and scope of SC. Our findings show that environmental dynamism and board digital expertise positively influence the method and scope of SC, but also that their interaction has a negative impact on these relationships. By integrating RDT and DMC, and by highlighting the determinants of SC, this study contributes to the advancement of scholarly understanding of SC and provides interesting insights for a wide audience of scholars, managers, and policymakers. • Resource dependence theory and dynamic managerial capabilities to examine strategic change. • Panel data with random effects analysis is used as research method. • Environmental dynamism, board digital expertise, and their interaction affect strategic change. • The article contributes to the advancement of our understanding of strategic change.