SHAPING DIGITAL CULTURE FOR SUSTAINABLE COMPETITIVE ADVANTAGE: EVIDENCE FROM BOSNIA AND HERZEGOVINA AND BULGARIA
Abstract: Digital culture is recognised as one of the key company competencies associated with a sustainable competitive advantage. Leaders play a vital role in creating a digital culture that enhances the company’s digital competencies by investing in individual and company knowledge to increase its innovation capacity. The study indicates that combining transformational and transactional leadership is essential for shaping digital culture successfully. The positive correlation between the level of development of digital culture and competitive advantage highlights the strategic importance of digital culture in raising a company’s digital maturity and ability to compete. The findings that companies in Bosnia and Herzegovina and Bulgaria invest more in company knowledge than individual knowledge open new perspectives in strategic planning. Companies should balance knowledge investment at individual and company levels to foster innovation. As leadership, digital culture, and balanced knowledge investment collectively contribute to innovation and sustainable competitive advantage, there is a need for a holistic approach to address this issue.
Keywords: digital culture, leadership, digital knowledge investment, innovation, competitive advantage