How digital transformation impacts organizational culture – A multi-hierarchical perspective on the manufacturing sector

Abstract

Digital transformation (DT) is not merely restricted to a company’s adoption of digital technologies. Still, it implies changes to a company's business model, strategies, and culture. However, the impacts of DT on organizational culture (OC) have not been widely researched yet. Cultural dimensions have not been analyzed in the context of the digital age, neglecting the fact that the current OC needs to transform into a digital OC. Consequently, this paper contributes by identifying the main challenges of a company's transformation and examining the dynamics of the OC dimensions in the digital context. By applying adaptive structuration theory and an input-process-output model, this study provides an overview of the transformation of a manufacturing company's OC from five years ago until now and five years in the future as a result of its DT program in a single case study. The main findings are that DT transforms the company’s OC toward increased collectivism, femininity, indulgence, and long-term orientation and reduces power distance and uncertainty avoidance.