Evaluating the optimal digital transformation strategy using hierarchical sensitivity decision model: A case study of tourism industry

I-Ya Chen; Chun-Yueh Lin; Yi-Ting Peng; I-Ya Chen; Chun-Yueh Lin; Yi-Ting Peng

doi:10.3934/jimo.2026016

Journal of Industrial and Management Optimization

2026, Volume 22, Issue 1: 422-449. doi: 10.3934/jimo.2026016

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Evaluating the optimal digital transformation strategy using hierarchical sensitivity decision model: A case study of tourism industry

1.
Department of Business Administration, Tamkang University, New Taipei City, Taiwan
2.
Department of Public Finance and Tax Administration, National Taipei University of Business, Taipei City, Taiwan

Received: 29 May 2025 Revised: 30 September 2025 Accepted: 29 October 2025 Published: 05 December 2025
90B50, 90C31

In this study, we addressed the critical challenge of digital transformation (DT) strategy evaluation in the tourism industry. While the literature extensively discusses DT's importance, it lacks quantitative frameworks for systematic strategy prioritization under varying market conditions, leaving practitioners without actionable decision-support tools. Therefore, we presented a comprehensive hierarchical decision support system that integrates the Analytic Hierarchy Process (AHP) with robust sensitivity analysis. The analysis identified "Digitalized Customer Preferences" as the paramount success factor and "Business Model Transformation" (BMT) as the optimal strategy. Critically, sensitivity analysis revealed a 78.68% threshold for "Digital Consumer Demand", where strategic priorities shifted from BMT to product-service optimization. These findings advance DT theory through dynamic, threshold-based strategy frameworks while providing tourism managers with quantitative guidance for adaptive strategic decision-making based on market dynamics.
- digital transformation strategy,
- tourism industry,
- delphi method,
- Analytic Hierarchy Process,
- sensitivity analysis
Citation: I-Ya Chen, Chun-Yueh Lin, Yi-Ting Peng. Evaluating the optimal digital transformation strategy using hierarchical sensitivity decision model: A case study of tourism industry[J]. Journal of Industrial and Management Optimization, 2026, 22(1): 422-449. doi: 10.3934/jimo.2026016

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Abstract

In this study, we addressed the critical challenge of digital transformation (DT) strategy evaluation in the tourism industry. While the literature extensively discusses DT's importance, it lacks quantitative frameworks for systematic strategy prioritization under varying market conditions, leaving practitioners without actionable decision-support tools. Therefore, we presented a comprehensive hierarchical decision support system that integrates the Analytic Hierarchy Process (AHP) with robust sensitivity analysis. The analysis identified "Digitalized Customer Preferences" as the paramount success factor and "Business Model Transformation" (BMT) as the optimal strategy. Critically, sensitivity analysis revealed a 78.68% threshold for "Digital Consumer Demand", where strategic priorities shifted from BMT to product-service optimization. These findings advance DT theory through dynamic, threshold-based strategy frameworks while providing tourism managers with quantitative guidance for adaptive strategic decision-making based on market dynamics.

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