Managing Digital Transformation: Comprehending Digitalization Tensions for Driving Disruptive Change

Abstract

Recent studies have shown the significance of disruptive innovation activities in the context of digital transformation for incumbent organizations. These companies strive to move towards data-driven business models through applying digital technologies which were attested a disruptive nature. However, it is unclear why many of those innovation projects cannot seize the full potential of digital technologies and rather result in an incremental adaptation of existing products or processes. Applying paradox as a meta-theory in this context, we seek to examine the mechanisms of digital innovation management projects in established, industrial companies. By conducting a qualitative study based on a collaborative research project and additional interviews with experts from industrial companies we were able to identify and categorize emerging tensions in digital innovation projects. Based on those results, we derived underlying paradoxes, notably regarding the openness in collaborations, the determination of the digital innovation process and integration of the innovation outcome in the existing business. Based on paradox theory, we discuss that those subliminal paradoxes may become salient in form of tensions in digitalization projects. An awareness for existing paradoxes can reduce the impact of tensions in digital innovation management in order to create disruptive innovations through digital transformation.