Strategic Adaptability as an Integrative Capability for Sustainable Competitive Advantage: A Qualitative Case Study in Indonesia's Digital Health Industry

Abstract

Rapid technological change, evolving healthcare regulations, and increasing customer expectations require digital health organizations to continuously strengthen their strategic adaptability to sustain competitive advantage. Although previous studies have highlighted the roles of Dynamic Capabilities, Strategic Flexibility, Organizational Ambidexterity, and Frugal Innovation, these capabilities have largely been examined independently, leaving limited understanding of how they collectively strengthen strategic adaptability. This study develops an empirically grounded Strategic Adaptability Model that integrates these complementary capabilities into a unified framework for sustainable competitive advantage. A qualitative single-case study was conducted in an Indonesian digital health organization using semi-structured interviews and document analysis. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña with source triangulation to enhance trustworthiness. The findings show that strategic adaptability develops through continuous environmental sensing, flexible strategic decision-making, balancing exploration and exploitation, and resource-efficient innovation, enabling organizations to strengthen innovation, customer value, and long-term competitiveness. The proposed Strategic Adaptability Model extends the Dynamic Capabilities perspective by positioning Strategic Flexibility, Organizational Ambidexterity, and Frugal Innovation as complementary capabilities that collectively translate Dynamic Capabilities into Sustainable Competitive Advantage.