Digital Transformation: The Interplay of Explorative and Exploitative Capability Development

Date
2020-01-07
Authors
Gao, Shan
Hakanen, Esko
Rajala, Risto
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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 extend 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.
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Making Digital Transformation Real, ambidexterity, digital transformation, exploitative capability, explorative capability, knowledge search
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10 pages
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Related To
Proceedings of the 53rd Hawaii International Conference on System Sciences
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Attribution-NonCommercial-NoDerivatives 4.0 International
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