The digital transformation journey of incumbent companies

Abstract

Digital transformation has become a strategic topic on the agenda of CEOs of large companies as well as has attracted growing interest from scholars. In particular, it is a critical topic for established companies - also known as incumbents - that need to transform their structure, strategy, business model, and culture to remain competitive in the context of the digital revolution. In order to contribute to this discussion, this research aimed to identify relevant dimensions of the digital transformation journey of incumbent companies in different industries. The dissertation is developed through two articles. The first one brings a systematic literature review with the objective of identifying main characteristics of existing research on DT in the areas of business and management. This has led to a conceptual framework built upon the description of nine dimensions of digital transformation identified in the study. The second article aimed to analyze the digital transformation journey of incumbents companies and has done so by applying the digital transformation theoretical framework in three incumbent firms that are leaders in their respective sectors and have market-recognized digital initiatives. A fundamental contribution of the current study is the examination of the ongoing digital transformation journey of incumbent firms across traditional industries. Nine dimensions of the firm's digital transformation were identified and described: structure and governance, digital transformation strategy, business model, culture, technology, data, capital, people, and dynamic capabilities. Our conceptual framework can be applied to guide future studies and to serve as a powerful tool for executives in charge of digital transformation processes in established firms. Thesis findings also contribute to existing studies by further explaining how established companies sense and seize opportunities in a digital transformation context, as well as how they have reconfigured their structure, culture, and business model to capture the potential of digital technologies. The research results also revealed a novel definition for digital transformation as being a journey of organizational change, in which a firm combines internal resources and dynamic capabilities to employ new digital technologies and transform its structure, business model, culture, and strategy to maintain its relevance in the digital landscape.