Digitization is among the macro-trends that significantly determine the business world of the 21st century. Firms striving to succeed in this environment have to develop new strategic approaches. The accelerating development of information technology drives digitization. Thus, IT strategy and business strategy need to be integrated. In this context, information systems literature promotes the concept of digital business strategy, reflecting a fusion between IT strategy and business strategy. However, currently, we do not know much about the characteristics and different types of such digital business strategies. To this end, we develop a conceptually and empirically grounded typology of digital business strategies. Based on a dataset of 281 firms worldwide, we carry out a cluster analysis, identify basic types of digital business strategies and evaluate their effects on firm performance. The paper contributes to a better understanding of new business strategy concepts. It thus enriches the extant insights from innovation management, strategic management, and information systems literature in the context of digitization.