How to Develop Organizational Forms for a Successful Digital Transformation? Findings from Two Case Studies

Abstract

AbstractPrevious research has increased our understanding of individual digital transformation (DT) activities, roles, responsibilities, and related dilemmas, yet a comprehensive insight is missing with respect to the organizational forms that are most appropriate for developing the capabilities needed for successful DT. The purpose of this paper is to identify the main organizational characteristics and organizational forms for a successful DT and to identify influential factors that impact decisions about suitable organizational forms. Drawing on two case studies, we look at how companies can develop digital capabilities through different configurations of organizational forms. Findings show that decisions on organizational forms have to be influenced by digital culture, IT department’s role, and the goals of DT. Moreover, top management leadership is more important than a formal digital strategy, and DT projects must be executed by coordinated interdisciplinary teams. The presented research offers a comprehensive insight on how companies can develop digital capabilities that enable a successful DT by developing their organizational forms, i.e., by combining the different DT actions, actors, their roles and responsibilities, their interplay, implementing DT strategies, and combining the design of digital software solutions with the design of organizational routines and practices.