IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/266361.html
   My bibliography  Save this article

Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company

Author

Listed:
  • Krzywdzinski, Martin
  • Butollo, Florian

Abstract

The development of Industry 4.0 technologies creates leeway for the digital transformation of manufacturing companies, whose business models increasingly rely on software and data-based services. While several studies emphasise that manufacturing has no choice but to follow this transformation, there is little knowledge about how companies are actually managing it. This article uses the case study of a leading mechanical engineering company to analyse how the company organised the development of new digital technologies and how it changed its organisational structures and practices. It is based on 22 interviews and an analysis of company documents. The analysis draws on ambidexterity theory, which is extended toward a dynamic process analysis. It shows that digital transformation presupposes the development of structures and practices supporting cross-functional cooperation and the creation of new skill formation approaches. It develops a model of organisational change related to the digital transformation of manufacturing companies which includes the proof-of-concept phase, the partial exploitation phase, and the organisational transformation phase.

Suggested Citation

  • Krzywdzinski, Martin & Butollo, Florian, 2022. "Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(2), pages 161-184.
    • Handle: RePEc:zbw:espost:266361
    DOI: 10.5771/0935-9915-2022-2-161
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/266361/1/Full-text-article-Krzywdzinski-et-al-Combining-experiential-knowledge.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.5771/0935-9915-2022-2-161?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
    ---><---

    References listed on IDEAS

    as
    1. Tom J. M. Mom & Frans A. J. Van Den Bosch & Henk W. Volberda, 2007. "Investigating Managers' Exploration and Exploitation Activities: The Influence of Top‐Down, Bottom‐Up, and Horizontal Knowledge Inflows," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 910-931, September.
    2. Bob Walrave & A Georges L Romme & Kim E van Oorschot & Fred Langerak, 2017. "Managerial attention to exploitation versus exploration: toward a dynamic perspective on ambidexterity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(6), pages 1145-1160.
    3. Erwin Danneels & Gianmario Verona & Bernardino Provera, 2018. "Overcoming the inertia of organizational competence: Olivetti’s transition from mechanical to electronic technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(3), pages 595-618.
    4. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    5. Thorsten Koch & Josef Windsperger, 2017. "Seeing through the network: Competitive advantage in the digital economy," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-30, December.
    6. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    7. Hans-Gerd Ridder, 2017. "The theory contribution of case study research designs," Business Research, Springer;German Academic Association for Business Research, vol. 10(2), pages 281-305, October.
    8. Martin Krzywdzinski, 2021. "Automation, digitalization, and changes in occupational structures in the automobile industry in Germany, Japan, and the United States: a brief history from the early 1990s until 2018 [Managing fle," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 499-535.
    9. Valeria Cirillo, 2017. "Technology, employment and skills," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(8), pages 734-754, November.
    10. Simge Tuna & Stefano Brusoni & Anja Schulze, 2019. "Architectural knowledge generation: evidence from a field study," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 977-1009.
    11. Alexander Zimmermann & Sebastian Raisch & Julian Birkinshaw, 2015. "How Is Ambidexterity Initiated? The Emergent Charter Definition Process," Organization Science, INFORMS, vol. 26(4), pages 1119-1139, August.
    12. Jing Zeng & David Mackay, 2019. "The influence of managerial attention on the deployment of dynamic capability: a case study of Internet platform firms in China," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 1173-1192.
    13. Florian BUTOLLO & Lea SCHNEIDEMESSER, 2021. "Beyond “Industry 4.0": B2B factory networks as an alternative path towards the digital transformation of manufacturing and work," International Labour Review, International Labour Organization, vol. 160(4), pages 537-552, 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. Krzywdzinski, Martin & Butollo, Florian, 2022. "Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 33(2), pages 161-184.
    2. Benedikt Schnellbächer & Sven Heidenreich, 2020. "The role of individual ambidexterity for organizational performance: examining effects of ambidextrous knowledge seeking and offering," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1535-1561, October.
    3. Karl Aschenbrücker & Tobias Kretschmer, 2022. "Performance-based incentives and innovative activity in small firms: evidence from German manufacturing," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 47-64, June.
    4. van Assen, Marcel F., 2020. "Empowering leadership and contextual ambidexterity – The mediating role of committed leadership for continuous improvement," European Management Journal, Elsevier, vol. 38(3), pages 435-449.
    5. Jensen, Are & Clausen, Tommy H., 2017. "Origins and emergence of exploration and exploitation capabilities in new technology-based firms," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 163-175.
    6. Yi Zhang & Feng Wei & Constance Van Horne, 2019. "Individual Ambidexterity And Antecedents In A Changing Context," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-25, April.
    7. Katsuki Aoki & Miriam Wilhelm, 2017. "The Role of Ambidexterity in Managing Buyer–Supplier Relationships: The Toyota Case," Organization Science, INFORMS, vol. 28(6), pages 1080-1097, December.
    8. Schnellbächer, Benedikt & Heidenreich, Sven & Wald, Andreas, 2019. "Antecedents and effects of individual ambidexterity – A cross-level investigation of exploration and exploitation activities at the employee level," European Management Journal, Elsevier, vol. 37(4), pages 442-454.
    9. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    10. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    11. Jan Ossenbrink & Joern Hoppmann, 2019. "Polytope Conditioning and Linear Convergence of the Frank–Wolfe Algorithm," Mathematics of Operations Research, INFORMS, vol. 44(1), pages 1319-1348, February.
    12. Jing A. Zhang & Tao Bai & Ryan W. Tang & Fiona Edgar & Steven Grover & Guoquan Chen, 2022. "The Development of Individual Ambidexterity Across Institutional Environments: Symmetric and Configurational Analyses," Management International Review, Springer, vol. 62(4), pages 517-540, August.
    13. Yasser Alizadeh & Antonie J. Jetter, 2019. "Pathways for Balancing Exploration and Exploitation in Innovations: A Review and Expansion of Ambidexterity Theory," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-33, August.
    14. Sebastian Raisch & Michael L. Tushman, 2016. "Growing New Corporate Businesses: From Initiation to Graduation," Organization Science, INFORMS, vol. 27(5), pages 1237-1257, October.
    15. Enkel, Ellen & Heil, Sebastian & Hengstler, Monika & Wirth, Henning, 2017. "Exploratory and exploitative innovation: To what extent do the dimensions of individual level absorptive capacity contribute?," Technovation, Elsevier, vol. 60, pages 29-38.
    16. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    17. Jan Ossenbrink & Joern Hoppmann & Volker H. Hoffmann, 2019. "Hybrid Ambidexterity: How the Environment Shapes Incumbents’ Use of Structural and Contextual Approaches," Organization Science, INFORMS, vol. 30(6), pages 1319-1348, November.
    18. Schnellbaecher, Benedikt & Diefenbach, Ulf & Millemann, Jan, 2015. "Putting the Individual in Ambidexterity – Identifying Activities to Achieve Organisational Ambidexterity and Long-Term Survival," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2015), Kotor, Montengero, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Kotor, Montengero, 10-11 September 2015, pages 57-63, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    19. Jiewei Zu & Jianan Wang & Jun Ma, 2022. "Ambidexterity in a Rapidly Changing Environment of China: Top Management Team Decision Making and Sustained Performance," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
    20. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.

    More about this item

    Keywords

    industry 4.0; manufacturing; innovation; ambidexterity; skill formation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    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:zbw:espost:266361. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.