Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal

Warner, K. S.R. and Wäger, M. (2019) Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal. Long Range Planning, 52(3), pp. 326-349. (doi: 10.1016/j.lrp.2018.12.001)

Abstract

In this qualitative study, we explore how incumbent firms in traditional industries build dynamic capabilities for digital transformation. Digital transformation has been defined as the use of new digital technologies, such as mobile, artificial intelligence, cloud, blockchain, and the Internet of things (IoT) technologies, to enable major business improvements to augment customer experience, streamline operations, or create new business models. In making sense of digital transformation, we discovered that leaders in various industry circles use the term inconsistently to describe various strategizing and organizing activities; in addition, the term has gained limited scholarly attention as a context for study of strategic change. Drawing on senior executives' experiences with leading digitalization projects at incumbent firms, we propose a process model comprising of nine microfoundations to reveal the generic contingency factors that trigger, enable, and hinder the building of dynamic capabilities for digital transformation. Our findings reveal that digital transformation is an ongoing process of using new digital technologies in everyday organizational life, which recognizes agility as the core mechanism for the strategic renewal of an organization's (1) business model, (2) collaborative approach, and eventually the (3) culture.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Warner, Dr Karl
• Authors: Warner, K. S.R., and Wäger, M.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Long Range Planning
• Publisher: Elsevier
• ISSN: 0024-6301
• ISSN (Online): 1873-1872
• Published Online: 19 December 2018
• Copyright Holders: Copyright © 2018 Elsevier Ltd.
• First Published: First published in Long Range Planning 52(3):326-349
• Publisher Policy: Reproduced in accordance with the publisher copyright policy