Digitalization as a Socioeconomic Challenge: Assessing the Mediating Role of Digital Service Quality on Digitalization’s Impact on Sustainable Competitive Advantage

This study examines the impact of digital service quality as a mediating variable between digitalization and sustainable competitive advantage since it is an important socio-economic challenge. There is a positive statistically significant relationship between digitalization, digital service quality, and sustainable competitive advantage at the telecommunication sector in Egypt. Data were collected from telecommunication workers in Egypt during 2024. Participants consisted of 300 employees who completed a questionnaire that assessed digitalization, digital service quality and sustainable competitive advantage dimensions. The results revealed that there is a significant relationship between the dimensions of digitization (such as strategic planning, preparing leaders, institutional structure, and attracting skills) and digital service quality and sustainable competitive advantage. This research provides an explicit recommendation for the digitalization of all organizational elements. The findings contribute to a better understanding mechanism of the influence of digitalization on digital quality and competitive advantage. The paper contributes to better understanding the dimensions of digitalization, digital service quality and sustainable competitive advantage. The use of digitalization as an independent variable, digital service quality as mediating variable, and sustainable competitive advantage as dependent variable has not been explored in one study in Egypt. In this study, a model has been built to analyze the relationship between digitalization, digital service quality and sustainable competitive advantage. Studying digitalization is crucial for businesses to gain a competitive advantage in today's digital landscape. As companies increasingly rely on digital technologies to deliver services, the level and usage of digital service Quality has become a key differentiator. By understanding how to design, deliver, and improve digital services, businesses can enhance customer experience, build trust, and establish a loyal customer base. This, in turn, can lead to increased customer retention, revenue growth, and ultimately, a sustainable competitive advantage. In a digitalized market, companies that prioritize the quality of their services are better equipped to adapt to changing customer needs, technological advancements, and shifting market conditions. By focusing on modern technologies to enhance service, businesses can identify areas for innovation, improve operational efficiency, and develop new revenue streams. Moreover, the findings demonstrate that companies which excel in digital service delivery can differentiate themselves from competitors, attract and retain top talent, and foster a culture of innovation and continuous improvement. By studying digitalization and prioritizing service quality, today’s businesses can unlock new opportunities for innovation and sustainability, while gaining a competitive advantage that drives long-term success.