This research focuses on the firms’ capability development in the era of digital transformation. We empirically investigate how firms operating in heavy industry extend their capabilities through explorative and exploitative capability development. Our study uncovers that firms in the industry tend to begin with exploitation and gradually extended to exploration. Our findings highlight the importance and necessity of adopting network capabilities both for execution of transformation activities, and for developing internal capabilities. The empirical evidence indicates that inter-organizational ambidexterity is essential for unleashing the full potential of digital transformation, and that ambidexterity can be achieved through a combination of internal and external capabilities.
|Number of pages||11|
|Publication status||Published - 7 Jan 2020|
|MoE publication type||Not Eligible|
|Event||Annual Hawaii International Conference on System Sciences - Maui, United States|
Duration: 7 Jan 2020 → 10 Jan 2020
Conference number: 53
|Conference||Annual Hawaii International Conference on System Sciences|
|Period||07/01/2020 → 10/01/2020|
- Digital transformation
- knowledge search
Gao, S., Hakanen, E., & Rajala, R. (2020). Digital transformation: The interplay of explorative and exploitative capability development. 1-11. Paper presented at Annual Hawaii International Conference on System Sciences, Maui, United States.