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Open Access
Article
Publication date: 2 August 2024

Wojciech Czakon and Natanya Meyer

In recent years we have seen major technological advancements including the launch of large language models such as ChatGPT and the popularity of the digital transformation topic…

Abstract

Purpose

In recent years we have seen major technological advancements including the launch of large language models such as ChatGPT and the popularity of the digital transformation topic among professionals and academics. Despite this, the pace of digital transformation is surprisingly slow. We aimed to identify behavioral antecedents of an organization’s sluggish digital transformation.

Design/methodology/approach

We adopted the organizational level of analysis, which differs from prior analyses of technological revolutions that looked at the phenomenon from an aggregate labor market or society level of analysis.

Findings

We identified dehumanization as a key construct useful in examining the behavioral impediments to digital transformation. We indicated that the traditionally dual understanding of dehumanization needs to incorporate the actual involvement of non-human agents in operational and decision-making processes in organizations.

Originality/value

We complemented the predominant approach of digital transformation, which focuses on technology and related business model development, with a behavioral approach. We considered digital transformation as an extreme degree of change, similar to the Industrial Revolution. We paved the way for the conceptual development of dehumanization in the digital world and for developing managerial practices useful in alleviating concerns that impede the pace of digital transformation.

Details

Central European Management Journal, vol. 32 no. 3
Type: Research Article
ISSN: 2658-0845

Keywords

Article
Publication date: 9 May 2024

Cristiane Froehlich, Luísa Baggio Reinhardt, Dusan Schreiber and Luciene Eberle

Digital transformation is a process in which organizations use technology as an essential resource to improve performance and increase market reach and results.

Abstract

Purpose

Digital transformation is a process in which organizations use technology as an essential resource to improve performance and increase market reach and results.

Design/methodology/approach

This research aims to verify how dynamic capabilities are configured for the development of strategies and processes necessary for digital transformation. To this end, qualitative research of an exploratory nature was carried out, operationalized through in-depth individual interviews with a semi-structured approach with managers who occupy leadership positions, in addition to a documentary survey of the internal records of the analyzed organization. In data analysis, the content analysis technique was used.

Findings

The main results of the research showed that the dynamic capabilities configured in sensing, seizing and reconfiguring contribute to leveraging digital transformation in the business studied through the reformulation of strategies to integrate and coordinate the implementation of new routines, investments in technological and human resources and actions to change culture with a focus on digital transformation considering the company’s stakeholders.

Originality/value

This transformation affects business models, products, services and processes, as well as the review of strategies, organizational structures and management concepts.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 24 May 2024

Disheng Wang and Xiaohong Xia

This study aims to examine the impact of digital transformation on firms’ value and explore the mediating impact of ESG performance and moderating impact of information…

Abstract

Purpose

This study aims to examine the impact of digital transformation on firms’ value and explore the mediating impact of ESG performance and moderating impact of information interaction.

Design/methodology/approach

Data was collected from companies listed on the Shanghai and Shenzhen stock exchange between 2012 and 2020 with 21,488 observational samples, featuring a selection of 3,348 companies. Panel data regression techniques were used to test the mediating role of ESG performance and the moderating role of information interaction.

Findings

The study found that digital transformation can improve firms’ ESG performance, which in turn positively affects their value. The firms that engage in more interaction with outsiders benefit more from digital transformation and have a higher value.

Originality/value

This study provides new theoretical insight into improving firms’ value through digital transformation and ESG performance. It is the first to discuss and study the moderating role of information interaction in the relationship between digital transformation and firms’ value.

Details

Business Process Management Journal, vol. 30 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 10 May 2024

Mehreen Malik, Muhammad Mustafa Raziq, Naukhez Sarwar and Adeel Tariq

Scholars and practitioners acknowledge that digital leadership can help organizations gain a competitive advantage. This article focuses on the characteristics, styles and skills…

Abstract

Purpose

Scholars and practitioners acknowledge that digital leadership can help organizations gain a competitive advantage. This article focuses on the characteristics, styles and skills needed for effective digital leadership. It looks at the role of digital leaders in innovating business models and introducing organizational change required for a successful digital transformation.

Design/methodology/approach

This paper is based on a comprehensive literature review of digital transformation, digital leadership, business model innovation, and organizational culture. It draws on institutional theory (INT) the neo-institutional theory (NIT). It draws from Science Direct, Web of Science and Google Scholar publications. A proposition and a conceptual framework are developed based on evaluating and synthesizing the literature.

Findings

We find that specific leader characteristics (agility, participative, innovativeness and openness), styles (democratic and transformational) and skills (cognitive, social, technological and digital) enable successful business model innovation and organizational change, all of which allow successful digital transformation of firms.

Originality/value

The literature on digital transformation has not been well integrated with the leadership literature. This is particularly true in terms of the role digital leaders play in the successful digital transformation of firms. The conceptual framework and a way forward proposed in this paper introduce future research directions on the topic.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 13 June 2024

Zeshan Ahmad, Belal Mahmoud AlWadi, Harish Kumar, Boon-Kwee Ng and Diep Ngoc Nguyen

The digital transformation of family-owned small businesses (F-OSBs) has become a critical area of research to maintain their economic contribution in today’s rapidly evolving…

Abstract

Purpose

The digital transformation of family-owned small businesses (F-OSBs) has become a critical area of research to maintain their economic contribution in today’s rapidly evolving digital landscape. This study examines the effect of internet entrepreneurial self-efficacy on the digital transformation of F-OSBs by mediating strategic agility and moderating artificial intelligence usage.

Design/methodology/approach

This study employed a cross-sectional survey design to collect primary data from 378 descendent entrepreneurs of F-OSBs in Pakistan’s five major cities.

Findings

The study revealed that leadership ability, internet marketing, technology utilization, and artificial intelligence used by the F-OSBs can contribute to their digital transformation, but e-commerce ability does not. The strategic agility of the descendant entrepreneur enhances the abilities of e-commerce, leadership, and technology utilization, leading to the digital transformation of F-OSB. However, strategic agility reduces the role of Internet marketing in digital transformation. Artificial intelligence usage moderates leadership’s ability to improve strategic agility but increases technology utilization for strategic agility and digital transformation of F-OSB.

Practical implications

The digital transformation through a combination of strategic agility and artificial intelligence can increase the F-OSBs' proactive approach to respond to changing market conditions even during economic recessions like COVID-19.

Originality/value

This study broadens the existing literature by examining the effect of descendent entrepreneur’s internet entrepreneurial self-efficacy, strategic agility, artificial intelligence usage, and their interplay on the digital transformation of F-OSB through the unified theory of acceptance and the use of technology.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 14 May 2024

Seyed Mahdi HosseiniNasab

This research paper aims to conceptualize digital transformation governance and its conventional mechanisms and to present governance solutions tailored to an organization’s level…

Abstract

Purpose

This research paper aims to conceptualize digital transformation governance and its conventional mechanisms and to present governance solutions tailored to an organization’s level of digital maturity. The objective is to provide a framework for large organizations to select appropriate governance mechanisms based on their digital maturity level, enabling them to effectively manage and govern their digital transformation journey.

Design/methodology/approach

The study employs a meta-synthesis methodology, systematically reviewing and synthesizing findings from 175 academic papers and 31 reports/white papers. The research involves a rigorous qualitative approach, including literature search, selection of relevant texts, information extraction, analysis of qualitative findings, quality control and presentation of findings.

Findings

The proposed model suggests a three-tiered approach to digital transformation governance based on the organization’s digital maturity: “beginner,” “intermediate” and “advanced” stages. The findings indicate that as an organization advances in its digital maturity, its governance mechanism tends to be less centralized and involves multiple relevant units. Conversely, organizations with lower digital maturity require a more concentrated approach to digital governance.

Research limitations/implications

The study is based on a systematic review and synthesis of existing literature. Further empirical research could validate and refine the proposed model.

Practical implications

By using the proposed maturity-driven model, organizations can choose a more suitable and effective governance mechanism for the realization of their digital transformation roadmap based on their digital maturity level. The model offers a comprehensive framework for selecting and combining appropriate governance mechanisms at each maturity stage.

Originality/value

The proposed framework offers a strategic and novel yet practical tool, enabling organizations to advance their digital governance capabilities in sync with their transformation roadmap. The study consolidates dispersed findings and expands the range of viable governance mechanisms contingent on digital progression.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 27 May 2024

Fang Xue, Yunqing Tan and Sajid Anwar

This study aims to integrate the concepts of digital transformation, innovation strategy, and competitive advantage, into a novel research model in an effort to identify a more…

Abstract

Purpose

This study aims to integrate the concepts of digital transformation, innovation strategy, and competitive advantage, into a novel research model in an effort to identify a more competitive path for digital transformation within manufacturing enterprises.

Design/methodology/approach

The research model was tested through multivariate hierarchical regression analyses, and Hayes’ PROCESS for SPSS, utilizing survey data collected from 183 manufacturing enterprises in China.

Findings

The results indicate that, in comparison to research and development (R&D) and production, digital transformation in service and organizational activities exert a more significant impact on competitive advantage. Conversely, digital transformation in sales does not exhibit a significant impact on competitive advantage. Furthermore, in contrast to exploratory innovation and ambidexterity, exploitative innovation has a more pronounced influence on digital transformation. Additionally, digital transformation has been confirmed as a mediator in the relationship between innovation strategy and competitive advantage.

Originality/value

These findings expand our comprehension of digital transformation as an evolving process and shed light on the relationship between digital transformation and competitive advantage across various value-creating activities. This research serves as a valuable resource for decision-makers in selecting the most suitable path for digital transformation and configuring innovative resources.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 11 June 2024

Benjamin Faro, Babak Abedin, Dilek Cetindamar and Farhad Daneshgar

The research aims to understand the co-existence of nimbleness and resilience in a continuous digital transformation, along with the dynamic capabilities needed to balance the…

Abstract

Purpose

The research aims to understand the co-existence of nimbleness and resilience in a continuous digital transformation, along with the dynamic capabilities needed to balance the challenges of their co-existence.

Design/methodology/approach

The current study draws on dialogical action design research (D-ADR) to investigate interactions among practitioners and executives. Data are collected from a major Australian financial services organisation (FSO) and many international experts.

Findings

The study presents a framework, the continuous transformation model (CTM), to describe digital transformation within an FSO context, emphasising nimbleness and resilience as its foundational pillars. This framework facilitates the identification of the critical role of organisational capabilities in managing continuous digital transformation, supported by dynamic IT capabilities. More importantly, the findings underscore how these capabilities enable managers to effectively balance the coexistence of nimbleness and resilience.

Research limitations/implications

The CTM contributes to the enterprise information systems literature by offering a coherent understanding of balancing resilience and nimbleness to succeed in digital transformation. In particular, the research model elucidates the relationship between dynamic capabilities and continuous digital transformations.

Practical implications

Digital transformations are not a one-off exercise. Managers in the FSO context must cultivate their organisational capabilities to achieve nimbleness and resilience during their digital transformation journey.

Originality/value

The relationship between dynamic capabilities and continuous digital transformation sheds light on establishing successful management processes within FSOs.

Details

Journal of Enterprise Information Management, vol. 37 no. 4
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 29 April 2024

Yuxue Chen and Yuqian Zhang

This study aims to investigate the influence of digital transformation on the overall financial performance of firms, with a specific focus on Chinese-listed companies from 2010…

Abstract

Purpose

This study aims to investigate the influence of digital transformation on the overall financial performance of firms, with a specific focus on Chinese-listed companies from 2010 to 2021. It seeks to understand the impacts on various accounting and financial indicators in emerging economies such as China.

Design/methodology/approach

This study employs a text-mining approach to construct a digital transformation index based on the data sample of 11,814 firm-year observations from China’s A-share listed companies. This index serves as a proxy to measure the extent of digital transformation and its impact on financial performance and health.

Findings

The findings indicate that digital transformation significantly enhances overall financial performance and health, as evidenced by increased profitability, reduced operational costs, and lowered financial risks. The study reveals a time-lagged effect, where the benefits of digital transformation become more apparent after about one year. Further analysis shows that the value of digital transformation is more evident in a firm’s asset items. This raises the possibility of recognising the by-product, such as data resources, in the digital transformation process.

Originality/value

This research offers a unique contribution by linking digital transformation to financial performance using a large dataset from China's A-share listed firms. Doing so enhances our understanding of the tangible effects of digital transformation on corporate performance. Furthermore, this research provides valuable insights for the advancement of future accounting practices and the development of standards.

Details

Industrial Management & Data Systems, vol. 124 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 June 2024

Mekuanint Abera, Chetana Marvadi and Dilipkumar Suthar

This study aims to examine the mediating role of innovation capability in the relationship between digital transformation strategy and innovation performance of microfinance…

Abstract

Purpose

This study aims to examine the mediating role of innovation capability in the relationship between digital transformation strategy and innovation performance of microfinance institutions in Ethiopia.

Design/methodology/approach

Survey data were collected from 12 microfinance institutions in Ethiopia through self-administered questionnaires. Statistical analysis was conducted using structural equation modeling with AMOS and SPSS. Covariance-based structural equation modeling was used to test the study hypotheses.

Findings

Digital transformation strategy indicators such as (digitization vision, information technology integration, information technology agility and flexibility of information technology) directly affect innovation performance. The innovation capability mediates the relationship between digital transformation strategy indicator (information technology agility) and innovation performance. However, innovation capability does not have mediation effect in the relationship between digital transformation strategy remaining indicators (digitization vision, information technology flexibility and information technology integration) and innovation performance.

Originality/value

The study affirmed the importance of dynamic capability theory and presents noteworthy conclusions applicable to managers, stakeholders, and policymakers. It illuminates how innovation capability serves as a crucial link between digital transformation strategies and innovation performance within microfinance institutions in Ethiopia. This research enhances the current understanding of innovation capability, digital transformation strategy and innovation performance in the literature.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

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