Digital transformation in entrepreneurial firms through information exchange with operating environment

Abstract Changing digital technologies and innovation threaten established business models. Increasing uncertainty in the operating environment often drives the need to transform the core business model of firms through a process of digital business transformation (DBT). In this study, we conduct a longitudinal study of two digital startups in the crowdfunding domain and identify the core attributes driving such transformation in digital ventures. We build a framework that examines how DBT takes place in entrepreneurial firms through information exchange with the environment. This research will help entrepreneurs and managers of such firms design and develop reactive business models for market success.