IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v13y2024i1d10.1186_s13731-024-00404-5.html
   My bibliography  Save this article

Digital transformation in incumbent companies: a qualitative study on exploration and exploitation activities in innovation

Author

Listed:
  • Sabrina Hoessler

    (University of Bamberg)

  • Claus-Christian Carbon

    (University of Bamberg
    Research Group EPÆG (Ergonomics, Psychological Aesthetics, Gestalt))

Abstract

Digital transformation is a pivotal strategic pillar for companies. Despite its relevance, incumbent companies still face challenges in implementation due to the complex character of transformation processes. We provide a framework serving as guidance for leaders of digital transformations. Based on an explorative research design, we conducted 33 semi-structured interviews with experts of digital transformations of incumbent companies. Our findings indicate that leaders need to understand the terminologies related to exploration, exploitation, and digital transformation, and the complex interaction between all three areas. This includes digital literacy and being aware of differentiated treatment of exploration and exploitation in innovations and the relevance of both. Leaders must acknowledge that industry and organizational characteristics influence organizations’ tendencies towards exploration or exploitation in innovations. Exploration in digital transformation is about using digital technologies to rethink business models. Using digital technologies to optimize existing processes, products, and IT infrastructure is associated with exploitation. In sum, we need different target settings and approaches for the required activities.

Suggested Citation

  • Sabrina Hoessler & Claus-Christian Carbon, 2024. "Digital transformation in incumbent companies: a qualitative study on exploration and exploitation activities in innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-31, December.
    • Handle: RePEc:spr:joiaen:v:13:y:2024:i:1:d:10.1186_s13731-024-00404-5
    DOI: 10.1186/s13731-024-00404-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-024-00404-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-024-00404-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Tilson & Kalle Lyytinen & Carsten Sørensen, 2010. "Research Commentary ---Digital Infrastructures: The Missing IS Research Agenda," Information Systems Research, INFORMS, vol. 21(4), pages 748-759, December.
    2. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    4. Daniel van den Buuse & Willem van Winden & Wieke Schrama, 2021. "Balancing Exploration and Exploitation in Sustainable Urban Innovation: An Ambidexterity Perspective toward Smart Cities," Journal of Urban Technology, Taylor & Francis Journals, vol. 28(1-2), pages 175-197, April.
    5. Christoph Kreiterling, 2023. "Digital innovation and entrepreneurship: a review of challenges in competitive markets," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-13, December.
    6. Elfindah Princes, 2019. "Ambidextrous Leadership in Manufacture Industry in Indonesia," GATR Journals jmmr228, Global Academy of Training and Research (GATR) Enterprise.
    7. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    8. Andrew Page & Jonny Holmström, 2023. "Enablers and inhibitors of digital startup evolution: a multi-case study of Swedish business incubators," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-28, December.
    9. Joseph K. Nwankpa & Pratim Datta, 2017. "Balancing exploration and exploitation of IT resources: the influence of Digital Business Intensity on perceived organizational performance," European Journal of Information Systems, Taylor & Francis Journals, vol. 26(5), pages 469-488, September.
    10. J. Piet Hausberg & Kirsten Liere-Netheler & Sven Packmohr & Stefanie Pakura & Kristin Vogelsang, 2019. "Research streams on digital transformation from a holistic business perspective: a systematic literature review and citation network analysis," Journal of Business Economics, Springer, vol. 89(8), pages 931-963, December.
    11. Jafari-Sadeghi, Vahid & Garcia-Perez, Alexeis & Candelo, Elena & Couturier, Jerome, 2021. "Exploring the impact of digital transformation on technology entrepreneurship and technological market expansion: The role of technology readiness, exploration and exploitation," Journal of Business Research, Elsevier, vol. 124(C), pages 100-111.
    12. Li, Feng, 2020. "The digital transformation of business models in the creative industries: A holistic framework and emerging trends," Technovation, Elsevier, vol. 92.
    13. Faris Alghamdi, 2018. "Ambidextrous leadership, ambidextrous employee, and the interaction between ambidextrous leadership and employee innovative performance," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-14, December.
    14. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    16. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    17. S. Hoessler & C. C. Carbon, 2022. "Digital Transformation And Ambidexterity: A Literature Review On Exploration And Exploitation Activities In Companies’ Digital Transformation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 26(08), pages 1-54, October.
    18. Navitha Singh Sewpersadh, 2023. "Disruptive business value models in the digital era," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-27, December.
    19. Daniel Schallmo & Christopher A. Williams & Luke Boardman, 2017. "Digital Transformation Of Business Models — Best Practice, Enablers, And Roadmap," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(08), pages 1-17, December.
    20. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    21. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Xiumei & Li, Yue, 2023. "The use of data-driven insight in ambidextrous digital transformation: How do resource orchestration, organizational strategic decision-making, and organizational agility matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    2. Gong, Cheng & Ribiere, Vincent, 2021. "Developing a unified definition of digital transformation," Technovation, Elsevier, vol. 102(C).
    3. Siachou, Evangelia & Vrontis, Demetris & Trichina, Eleni, 2021. "Can traditional organizations be digitally transformed by themselves? The moderating role of absorptive capacity and strategic interdependence," Journal of Business Research, Elsevier, vol. 124(C), pages 408-421.
    4. Lei Guo & Luying Xu, 2021. "The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    5. Liu, Zixu & Zhou, Jianghua & Li, Jizhen, 2023. "How do family firms respond strategically to the digital transformation trend: Disclosing symbolic cues or making substantive changes?," Journal of Business Research, Elsevier, vol. 155(PA).
    6. Cong Cheng & Hongfang Cui, 2024. "Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    7. Florian Wiesböck & Thomas Hess, 2020. "Digital innovations," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 75-86, March.
    8. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    9. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    10. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).
    11. Matthias Fabian Gregersen Trischler & Jason Li-Ying, 2023. "Digital business model innovation: toward construct clarity and future research directions," Review of Managerial Science, Springer, vol. 17(1), pages 3-32, January.
    12. Pi-Hui Chung & Cheng-Yu Lee, 2024. "The Attitude of Family Firms Toward Digital Transformation: From the Organizational Learning Perspective," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(4), pages 1-2.
    13. Jan Jöhnk & Philipp Ollig & Patrick Rövekamp & Severin Oesterle, 2022. "Managing the complexity of digital transformation—How multiple concurrent initiatives foster hybrid ambidexterity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 547-569, June.
    14. Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    15. YoungKi Park & Paul A. Pavlou & Nilesh Saraf, 2020. "Configurations for Achieving Organizational Ambidexterity with Digitization," Information Systems Research, INFORMS, vol. 31(4), pages 1376-1397, December.
    16. Guo, Bin & Zhang, Jiale & Tan, Ziyan, 2024. "Firm digitalization as strategic response: An integrated model based on the awareness-motivation-capability (AMC) framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    17. Sebastian Firk & André Hanelt & Jana Oehmichen & Michael Wolff, 2021. "Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1800-1831, November.
    18. Satı, Zümrüt Ecevit, 2024. "Comparison of the criteria affecting the digital innovation performance of the European Union (EU) member and candidate countries with the entropy weight-TOPSIS method and investigation of its importa," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    19. Robert Keller & Philipp Ollig & Patrick Rövekamp, 2022. "Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(1), pages 33-46, February.
    20. Michaela Wrede & Vivek K. Velamuri & Tobias Dauth, 2020. "Top managers in the digital age: Exploring the role and practices of top managers in firms' digital transformation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1549-1567, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:13:y:2024:i:1:d:10.1186_s13731-024-00404-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.