Quality over quantity: The role of digital adoption depth in driving firm flexibility and sustainability

This study investigates why digital transformation often leads to inconsistent results in traditional industries. While many assume that technology always improves performance, most research relies on simple "checklists" of technology adoption (breadth). We challenge this view by distinguishing between digital adoption depth (strategic integration) and breadth (simple accumulation). Using data from 321 Spanish wineries and Partial Least Squares Structural Equation Modeling, we test whether production process flexibility, viewed as a dynamic capability, is the link between digital tools and firm performance. Our findings reveal a sharp contrast: digital depth is a strong predictor of flexibility and clean production, while breadth is largely ineffective. We establish that strategic integration, not mere acquisition, is the true driver of value in digitalization.