Identifying critical capabilities for improving the maturity level of digital services creation process

Purpose: This research aims to develop a digital capability maturity model to find the critical capability and define the maturity level of the digital services creation process for the Business Process Outsourcing (BPO) company, which services cover the end-to-end client's non-core activities involving people, process, and technology.Design/methodology/approach: The study conducts qualitative approaches in variables selection using grounded theory, followed by in-depth interviews and focus group discussion confirming the chosen variables as relevant capabilities. Additionally, quantitative approaches are used to define the impact of those capabilities on the process through an online survey of 208 employees and Structural Equation Modelling (SEM) for model analysis.Findings: The research proves that alignment strategy has a positive impact on the organizational and individual capabilities, both of which have a positive impact on the process. All capabilities are defined in the "quantitatively managed" maturity level, while the collaboration culture and value creation skill indicators are required to be prioritized in development for having a significant driver yet an inferior performance.Practical implications: The proposed model is built to be generally utilized to help the BPO companies understand their critical capabilities and improve their maturity level to lead the industry. The research contribution is not only to develop a model that is suitable for a particular business but also to create more value for academic purposes through improving the model by introducing a new variable "alignment strategy" and "organizational capability" as an essential component influencing the process.Originality/value: This is a multimethod study that elaborates empirical evidence, literature review, and professional judgment to assess the capabilities of the digital services creation process, to prove the importance of alignment between those capabilities, and to define the process maturity level.