Digital transformation: The interplay of explorative and exploitative capability development

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Abstract

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.
Original languageEnglish
Pages1-11
Number of pages11
Publication statusPublished - 7 Jan 2020
MoE publication typeNot Eligible
EventAnnual Hawaii International Conference on System Sciences - Maui, United States
Duration: 7 Jan 202010 Jan 2020
Conference number: 53

Conference

ConferenceAnnual Hawaii International Conference on System Sciences
Abbreviated titleHICSS
CountryUnited States
CityMaui
Period07/01/202010/01/2020

Keywords

  • Digital transformation
  • ambidexterity
  • exploration
  • exploitation
  • knowledge search

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    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.