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Despite the role of digital technologies in increasing the popularity of K-pop, little is known about how K-pop entertainment companies digitally transform their business models and the driving forces that shape this transformation. In this study, we present an in-depth case study of a pioneering K-pop entertainment company, SM Entertainment, whose founder’s charismatic leadership and organizational capabilities contribute to the digital transformation of its business model through market-pioneering strategies and strategic learning derived from continuous interactions with changing business environments. This transition to the digital business model ultimately leads to sustainable competitive advantages in the marketplace. The important theoretical and practical implications of the findings are discussed.

Leading digital business model transformation in the K-pop industry: the case of SM Entertainment