IT Capability Framework for Digital Transformation in South African Financial Service Providers

International Journal of Computer & Organization Trends  (IJCOT)          
© 2020 by IJCOT Journal
Volume - 10 Issue - 2
Year of Publication : 2020
Authors : Michael Makgale Modiba, Prof Ray M Kekwaletswe, Moroka Dominic Komati
DOI : 10.14445/22492593/IJCOT-V10I2P305


MLA Style:Michael Makgale Modiba, Prof Ray M Kekwaletswe, Moroka Dominic Komati"IT Capability Framework for Digital Transformation in South African Financial Service Providers" International Journal of Computer and Organization Trends 10.2 (2020): 24-39. 

APA Style:Michael Makgale Modiba, Prof Ray M Kekwaletswe, Moroka Dominic Komati(2020).IT Capability Framework for Digital Transformation in South African Financial Service Providers. International Journal of Computer and Organization Trends, 10(2), 24-39.


This paper addresses IT capability within South African Financial Service Providers (FSP) with the focus on two contexts, namely FSP context and South African context. The paper uses IT capability model and the Technological, organizational and environmental theory as lenses to deeply understand what and how South African Financial Service Providers experience the digital transformation. The problem is that IT capability is normally discussed in general not specific to context. Following an interpretative philosophy and inductive approach this paper shows that digital transformation within FSP in South Africa is either enabled or inhibited by existing IT capabilities. The paper argues that IT capabilities ought to manifest cognizant of the FSP’s technological, organizational and environmental contexts. The IT capability digital transformation framework conceptualised unpacks the theoretical, practical, and contextual contributions of this paper.


[1] ANDO, H., COUSINS, R. AND YOUNG, C. (2014). "Achieving saturation in thematic analysis: Development and refinement of a codebook". Comprehensive Psychology, 3:03-CP.
[2] ARPACI, I., YARDIMCI, Y. C., OZKAN, S. AND TURETKEN, O. (2012). "Organizational adoption of information technologies: A literature review". International Journal of e-business and e-government Studies, 4, 37-50.
[3] BENNETT, K. (1995). "Legacy systems: Coping with success". IEEE software, 12(1), 19-23.
[4] BERMAN, S.J., KORSTEN, P.J. AND MARSHALL, A. (2016). "A four-step blueprint for digital reinvention". Strategy & Leadership.
[5] BERNARD, H.R. (2017). "Research methods in anthropology: Qualitative and quantitative approaches". Rowman & Littlefield.
[6] BICKMAN, L. AND ROG, D. J. (2008). "The SAGE handbook of applied social research methods", Sage publications.
[7] BLACK, D., GATES, G., SANDERS, S. and TAYLOR, L. (2000). "Demographics of the gay and lesbian population in the United States: Evidence from available systematic data sources". Demography, 37(2), pp.139-154.
[8] BORGATTI, S. J. R. A. (1999). "Elements of research?. 11: 2013.
[9] BOYATZIS, R.E. (1998). "Transforming qualitative information: Thematic analysis and code development. Sage".
[10] BRAUN, V. AND CLARKE, V. (2006). "Using thematic analysis in psychology. Qualitative research in psychology", 3(2), pp.77-101.
[11] CHAMBERS, H. (2004). "My Way or the Highway. Berrett Koehler Publishers, San Francisco". Retrieved on 20 December 2019.
[12] COHEN, L. AND MANION, L. (1994). Research methods in education 4th edition Routledge, London.
[13] CRESWELL, J. W. AND CRESWELL, JD. (2017). "Research design: Qualitative, quantitative, and mixed methods approaches", Sage publications.
[14] DENZIN, N.K. AND LINCOLN, Y.S. (Eds.). (2005). Handbook of qualitative research (3rd Ed.). London: Sage.
[15] Department of Trade and Industry of the Republic of South Africa, "South Africa: Investor‘s Handbook 2014/2015‘. 2015) 61 SA_2014-15.pdf Accessed 20 Janaury 2017; National Treasury of the Republic of South Africa, ?A Review Framework for Cross-Border Direct Investment in South Africa‘ (2011) 13. accessed 20 January 2017
[16] DEPIETRO, R., WIARDA, E. AND FLEISCHER, M. (1990). "The context for change: Organization, technology and environment?. The processes of technological innovation, 199(0), pp.151-175.
[17] DREMEL, C., WULF, J., HERTERICH, M. M., WAIZMANN, J.C. AND BRENNER, W. (2017). "How AUDI AG Established Big Data Analytics in Its Digital Transformation?. MIS Quarterly Executive, 16.
[18] EBERT, C. AND DUARTE, C. H. C. (2016). "Requirements engineering for the digital transformation: Industry panel?. 2016 IEEE 24th International Requirements Engineering Conference (RE), IEEE.
[19] FERREIRA, M., MOUTON, J., PUTH, G., SCHURINK, E. AND SCHURINK, W.J. (1988). Introduction to qualitative research methods. HSRC.
[20] FITZGERALD, M., KRUSCHWITZ, N., BONNET, D. AND WELCH, M. (2014). "Embracing digital technology: A new strategic imperative?. MIT Sloan management review, 55(2), p.1.
[21] FRENCH, R., TRACEY, D. AND BRANDENBURG, J. (2003). "Framework for system monitoring?. Sun Microsystems Inc., U.S. Patent Application 10/012,594.
[22] GARTNER. (2020). Digitalization. Retrieved 26 January, 2020, from
[23] GONZÁLEZ, O., SHRIKUMAR, H., STANKOVIC, J.A. AND RAMAMRITHAM, K. (1997). "Adaptive fault tolerance and graceful degradation under dynamic hard real-time scheduling?. In Proceedings Real-Time Systems Symposium (pp. 79-89). IEEE.
[24] GREENLEAF, G. (2009). "Five years of the APEC Privacy Framework: Failure or promise?" Computer Law and Security Report. 25. SSRN 2022907.
[25] GURBAXANI, V. AND DUNKLE, D. (2019). "Gearing up for Successful Digital Transformation". MIS Quarterly Executive, 18.
[26] GUSTAFSSON, J. (2017). "Single case studies vs. multiple case studies: A comparative study".
[27] HENDERSON, J., HEPSØ, V. AND MYDLAND. (2013.) What is a Capability Platform Approach to Integrated Operations? An Introduction to Key Concepts. In Integrated operations in the oil and gas industry: Sustainability and capability development (pp. 1-19). IGI Global.
[28] HOLLAND, C. P. AND NAUDE, P. (2004). "The metamorphosis of marketing into an information-handling problem". Journal of Business and Industrial Marketing 19(3): 167-177.
[29] HOLOTIUK, F. AND BEIMBORN, D. (2017). "Critical success factors of digital business strategy".
[30] HSIEH, H.F. and SHANNON, S.E. (2005). "Three approaches to qualitative content analysis". Qualitative health research, 15(9), pp.1277-1288.
[31] HUANG, J., HENFRIDSSON, O., LIU, M.J. AND NEWELL, S. (2017). "Growing on steroids: Rapidly scaling the user base of digital ventures through digital innovation?. Mis Quarterly, 41(1).
[32] HUTCHINSON, S.A. AND WILSON, H.S. (1991). "Triangulation of qualitative methods, Heideggerian hermeneutics and grounded theory". Qualitative Health Research, 1(2), 263-276.
[33] KANE, G. (2019). "The Technology Fallacy: People Are the Real Key to Digital Transformation?. Research-Technology Management, 62, 44-49.
[34] KAPLAN, R. S. AND NORTON, D.P. (2000). Having trouble with your strategy? Then map it. Focusing Your Organization on Strategy—with the Balanced Scorecard 49.
[35] KARIMI, J. AND WALTER, Z. (2015). "The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry". Journal of Management Information Systems 32(1): 39-81.
[36] KARIMI, J., SOMERS, T.M. AND BHATTACHERJEE, A. (2007). "The role of information systems resources in ERP capability building and business process outcomes?. Journal of Management Information Systems, 24(2), pp.221-260.
[37] KENNEY, M., ROUVINEN, P. AND ZYSMAN, J. (2015). "The digital disruption and its societal impacts?. Journal of Industry, Competition and Trade, 15, 1-4.
[38] KHANCHEL, H. (2019). "Digital transformation: How to organize the digital function within the Tunisian company? "Review of General Management, 29.
[39] KOHLI, R. AND JOHNSON, S. (2011). "Digital Transformation in Latecomer Industries: CIO and CEO Leadership Lessons from Encana Oil and Gas (USA) Inc?. MIS Quarterly Executive 10(4).
[40] KOHNKE, O. (2017). "It’s not just about technology: the people side of digitization?. Shaping the digital enterprise, Springer: 69-91.
[41] LARJOVUORI, R.L., BORDI, L. AND HEIKKILÄ-TAMMI, K. (2018). "Leadership in the digital business transformation?. In Proceedings of the 22nd International Academic Mind trek Conference (pp. 212-221).
[42] LUCAS, Jr, H. C. AND GOH, J.M. (2009). "Disruptive technology: How Kodak missed the digital photography revolution?. The Journal of Strategic Information Systems 18(1): 46-55.
[43] MALHOTRA, S. (2014). "Impact of outsourcing on the organisations opting for IT". International Journal of Marketing and Technology, 4(3), pp.115-122.
[44] MARSHALL, C. (1996). "Designing qualitative research?. London: Sage.
[45] MARVIN, L. M., AND BOWDEN, Y. (2014). "Conducting US Discovery in Asia: An Overview of E-Discovery and Asian Data Privacy Laws?. Rich. JL and Tech., 21, 1.
[46] MATT, C., HESS, T. AND BENLIAN, A. (2015). "Digital transformation strategies?. Business and Information Systems Engineering, 57(5), pp.339-343.
[47] MCDONALD, M. AND ROWSELL-JONES, A. (2012). "The digital edge: Exploiting new technology and information for business advantage?. Gartner E-Books.
[48] MCMORROW, D. (2018). "Digitisation and Digitalisation – You Need To Know The Difference [Online]". Available: [Accessed 26 January 2020].
[49] MERTENS, D. M. (2014). "Research and evaluation in education and psychology: Integrating diversity with quantitative, qualitative, and mixed methods", Sage publications.
[50] MILES, M.B., HUBERMAN, A.M., HUBERMAN, M.A. and HUBERMAN, M. (1994). "Qualitative data analysis: An expanded sourcebook". Sage.
[51] MOHAMED, E. K., AND LASHINE, S. H. (2003). "Accounting knowledge and skills and the challenges of a global business environment". Managerial finance.
[52] MOUTON, J. AND BABBIE, E. (2001). "The practice of social research". Cape Town: Wadsworth Publishing Company, pp.871-890.
[53] Myers, M.D. and Avison, D. eds. (2002). "Qualitative research in information systems: a reader". Sage.
[54] NAMBISAN, S., LYYTINEN, K., MAJCHRZAK, A. AND SONG, M. (2017). "Digital Innovation Management: Reinventing innovation management research in a digital world". Mis Quarterly, 41.
[55] OLIVEIRA, T. AND MARTINS, M.F. (2010). "Understanding e-business adoption across industries in European countries". Industrial Management and Data Systems 110(9): 1337-1354.
[56] ORBELE, S. (2002). "Motivational and volitional processes in action initiation: a field study of implementation intentions". Journal of Applied Social Psychology, 30(4), 780-797.
[57] OSMAN, T. (2018). "Digitisation vs. Digitalisation: What it Means for Your Business [Online]". Available: [Accessed 26 January 2020].
[58] ØVRETVEIT, J., BATE, P., CLEARY, P., CRETIN, S., GUSTAFSON, D., MCINNES, K., MCLEOD, H., MOLFENTER, T., PLSEK, P., ROBERT, G. AND SHORTELL, S. (2002). Quality collaboratives: lessons from research. Qual Saf Health Care, 11(4), pp.345-351.
[59] RACHINGER, M. (2019). "Digitalization and its influence on business model innovation". Journal of Manufacturing Technology Management 30(8): 1143-1160.
[60] REIS, J., AMORIM, M., MELÃO, N. AND MATOS, P. (2018). "Digital transformation: a literature review and guidelines for future research". In World conference on information systems and technologies (pp. 411-421). Springer, Cham.
[61] ROSS, J.W., SEBASTIAN, I., BEATH, C., MOCKER, M., MOLONEY, K. AND FONSTAD, N. (2016). "Designing and executing digital strategies".
[62] RYYNÄNEN, T. AND T. HYYRYLÄINEN (2018). "Digitalisation of Consumption and Digital Humanities-Development Trajectories and Challenges for the Future". DHN, 2018. 363-371.
[63] SCHREIER, M. (2012). "Qualitative Content Analysis in practice". Scientific study of literature. 3:1 (165 – 168).
[64] SHAMOO, A.E. AND RESNIK, D.B. (2009). Responsible conduct of research. Oxford University Press.
[65] TORNATZKY, L. AND FLEISCHER, M. (1990). "The process of technology innovation". Lexington, MA: Lexington Books, 165.
[66] TROCHIM, W. M. (2006). The research methods knowledge base, 2nd.Edition. Internet WWW page, at URL: http://www. Social research methods. net/kb/(version current as of October 20, 2006).
[67] VEN, K. AND VERELST, J. (2011). "An empirical investigation into the assimilation of open source server software". Communications of the association for information systems 28(1): 9.
[68] WADE, M. (2015). "A conceptual framework for digital business transformation". A Global Center for Digital Business Transformation, An IMD and Cisco initiative.
[69] WADE, M., NORONHA, A., MACAULAY, J. AND BARBIER, J. (2017). "Orchestrating digital business transformation".
[70] WESTERMAN, G., BONNET, D. AND MCAFEE, A. (2014). "Leading digital: Turning technology into business transformation", Harvard Business Press.
[71] WESTERMAN, G., CALMÉJANE, C., BONNET, D., FERRARIS, P. AND MCAFEE, A. 2011). "Digital Transformation: A roadmap for billion-dollar organizations". MIT Center for Digital Business and Capgemini Consulting, 1, 1-68.
[72] WODAK, R. and M. MEYER (2009). "Critical discourse analysis: History, agenda, theory and methodology". Methods of critical discourse analysis 2: 1-33.
[73] YIN, R. (1991). "Case study research: design and methods". Newbury Park, Rev. Ed, Sage Publications.

Digital Business, Digital Transformation, Financial Service Providers, IT Capability, South Africa, TOE Context