How legacy firms achieve digital transformation through brand flagship platform: the role of digital platform capability

Purpose Digital transformation is widely recognized as a fundamental strategy for business-to-business (B2B) firms to attain long-term growth. However, the mechanism by which B2B firms leverage digital platforms to drive transformation and enhance competitiveness remains unclear. This paper aims to conceptualize the brand flagship platform as a business-to-business-to-customer (B2B2C) model by integrating B2B and business-to-consumer (B2C) models and explore its potential mechanisms for promoting digital transformation. Design/methodology/approach In this empirical study, this paper obtained 296 questionnaires from three companies across categories, namely Haier (manufacturing), China Merchants Bank (finance service) and Luckin Coffee (retail). The participants were managers who had access to the digital strategies. A structural equation model was conducted to test the proposed hypotheses. Findings This research shows that brand flagship platforms, which integrate B2B and B2C models, facilitate the digital transformation of B2B firms. Specifically, digital leadership capability and digital business capability positively influence digital platform capability, which is enabled by brand flagship platforms. Moreover, organizational flexibility amplifies the positive effects of digital leadership capability and digital business capability on digital platform capability. In turn, digital platform capability significantly enhances brand competitiveness. Practical implications This study offers significant insights for legacy firms seeking digital transformation through brand flagship platforms, providing actionable guidance for their strategic decisions. Originality/value This research fills a gap by advancing the theoretical understanding of the brand flagship platform through the integration of the B2B2C model and highlighting its role in B2B firms’ digital transformation. It sheds light on the underlying mechanism by which lower-order capabilities – digital leadership capability and digital business capability – influence brand competitiveness through the higher-order brand platform capability. It also expands brand management theory by demonstrating how digital platforms transform brands from product and service providers into ecosystem hubs.