Digital Innovation Management in Developing Economies: Challenges and Emerging Strategies in the Financial Services Sector of South Africa

Abstract

Digital innovations have become increasingly central to economic growth worldwide. This study investigates the challenges, success factors, and emerging strategies related to digital innovation management in developing economies, focusing on South Africa’s financial services sector. It reviews the relevant literature, evaluates existing models for innovation management, and introduces a conceptual framework, ‘digital innovation management in developing economies’ (DIM-DE), that incorporates elements such as dynamic capability development and external collaboration. The research includes qualitative interviews with five financial sector leaders, analysing problems such as talent scarcity and unreliable infrastructure, alongside success factors such as strategic alignment and customer focus. The findings validate the DIM-DE framework, and present strategies such as skills development and operational enhancements. Implications for stakeholders and recommendations for future research are discussed.