DIGITAL TRANSFORMATION AND AMBIDEXTERITY: A LITERATURE REVIEW ON EXPLORATION AND EXPLOITATION ACTIVITIES IN COMPANIES’ DIGITAL TRANSFORMATION

Abstract

One major challenge in the industries is digital transformation. Ambidexterity, the ability to optimise the existing and innovate new business concepts, is widely accepted as a critical concept of sustainable success. We conducted a literature review (period from 2010 to 2021) on what differential aspects of exploration and exploitation are needed to lead a digital transformation. With the help of a structured selection process, we identified 94 relevant papers. Our findings show that all reviewed articles on digital transformation contain aspects of exploration and exploitation, often without deep specifications. We reveal that structural ambidexterity, leadership, and collaboration are the focus areas related to ambidexterity in digital transformation. Digital transformations fail by not achieving the intended innovation outcome resulting from inadequate key performance indicators and focussing on short-term profitability. Our findings provide first insights but need additional empirical research for validation and more detailed knowledge on ambidexterity in digital transformation.