Digital transformation

Our philosophy

Digital transformation (DT) is an important topic that is attractive to both academics and practitioners. DT is described as the utilization of digital technologies to enhance organizational effectiveness or exposure. DT basically emphasizes on the technological changes and the alignment between technologies and business process. At the organizational level, firms need to find the way to use new digital technologies to change their process and organizational structure, by defining a digital strategy or digital transformation strategy, and by creating a new business model to gain firm’s performance and reduce costs with the right digital roadmap and digital vision of leaders.

DT has been realized as an opportunity for firms to potentially enable numerous business improvements and benefits for their organizations, however, there are several incumbents who are struggling with DT implementation. It is reported that the estimated failure-rate of DT is ranged from 66% to 84%. There are reasons to figure out such failures, including the distinct economic value that new start-up and firms face with, the forces of inertia within incumbent organizations.

DT is changing processes that affect the entire organization to enhance business outcomes. Scholars reported that organizational innovation and change are positively impacted by both transactional and transformational leadership styles. However, in circumstances that are dynamic, companies gain more from transformative leadership and organizational innovation can be improved by the influence of both transformational and transactional leadership. As a result, transformational leaders may establish an environment for innovation that encourages employees' inventiveness.

Our objective is to figure out the DT processes based on our research, particularly, for emerging market firms who are lacking of resources and technological capabilities that are important for DT.

DT is a foundational transformation process in which digital technologies are used to improve a firm's business dimensions (i.e., enhancing customer experience, operational efficiency, new digital business model) and performance (e.g., market performance, financial performance).

The framework

The framework of Digital transformation is described below, including three components: antecedents, mechanisms, and consequences. We will discuss external factors, including trends of digital technologies, digital competition, and digital customer behavior.

Leadership in DT era

Leadership is the most important element influencing on firm's DT. Leadership plays a crucial role as an antecedent along the digital journey of companies.