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Digital Transformation: The Interplay of Explorative and Exploitative Capability Development

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Title:Digital Transformation: The Interplay of Explorative and Exploitative Capability Development
Authors:Gao, Shan
Hakanen, Esko
Rajala, Risto
Keywords:Making Digital Transformation Real
digital transformation
exploitative capability
explorative capability
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Date Issued:07 Jan 2020
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 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.
Pages/Duration:10 pages
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
Appears in Collections: Making Digital Transformation Real

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