The Role of Technology Strategy, Agile Process Re-Engineering, and Digital Innovation in Achieving Competitive Advantage: Evidence from United Arab

Abstract

This study examined the impact of technology strategy execution, agile process re-engineering, and digital innovation on competitive advantage in the telecom sector of UAE. Primary data were collected from a sample of 365 senior managers, consultants, and technology executives across leading telecom operators and consulting firms in UAE. Data were analyzed using Structural Equation Modeling (SEM) to test the hypothesized framework, drawing on literature from digital transformation, strategic management, and innovation theory. The results revealed that technology strategy execution significantly strengthened competitive advantage by aligning innovation with business goals, improving efficiency, and enabling scalable transformation programs. Agile process re-engineering also had a strong positive effect on competitive advantage. Furthermore, digital innovation—including AI applications, IoT solutions, 5G adoption, and cloud integration—was found to be a key driver of differentiation, enabling telecom firms to provide future-ready services and respond quickly to market changes. Collectively, these three independent variables explained a substantial proportion of variance in competitive advantage, confirming the strategic importance of digital and agile practices in telecom transformation.