Managing Digital Transformation with Sociotechnical Micro-Foundations: A Dynamic Capabilities Approach

Abstract

The dynamic capabilities approach has contributed to our understanding of digital transformation and has been complemented with the concept of micro-foundations. However, the potential contribution of micro-foundations has not fully been realized in IS research to explain the dynamics of digital transformation. Thus, we introduce sociotechnical micro-foundations, which we posit in an empirically grounded theoretical framework through an in-depth case study of the digital transformation of a Nordic hotel chain. The proposed framework advances the literature on dynamic capability and digital transformation by extending our understanding of how competencies and digital resources are interrelated in digital transformations.