Efficiency or novelty? The impact of business models on digital transformation magnitude and speed

Purpose This study aims to investigate the differential impacts of efficiency-centered business models and novelty-centered business models on two key dimensions of digital transformation – magnitude and speed. Additionally, it examines the moderating role of collective goal cognition in shaping these relationships, grounded in dominant logic theory. Design/methodology/approach This study used a two-wave survey of 410 Chinese firms undergoing digital transformation across finance, healthcare, energy, retail and high-tech industries. After data cleaning, 326 valid responses remained, which were analyzed using structural equation modeling. Findings The results indicate that efficiency-centered business models negatively influence digital transformation magnitude but positively affect its speed. Conversely, novelty-centered business models enhance both digital transformation magnitude and speed. Furthermore, collective goal cognition significantly moderates these relationships. Originality/value Theoretically, this research advances dominant logic theory by redefining digital transformation through its magnitude and speed dimensions and proposing a framework for balancing these imperatives via business model adaptation. Practically, it provides firms with actionable insights: policymakers and executives should align business model strategies with organizational cognition to optimize digital transformation outcomes, ensuring both scalability and agility.