Opportunity or Threat? Exploring Middle Manager Roles in the Face of Digital Transformation

Abstract

There has been much controversy concerning the effects of automation on the role of middle managers in contemporary organizations. Some scholars adopt the “automation-as-a-threat” perspective to argue that middle manager roles will disappear with digital automation. Yet, others take a “automation-as-an-opportunity” view to underscore the advantages digital technology offers to individuals and organizations. Drawing on role theory, we develop a framework that reconciles these opposing views, and argue that the effect of digital transformation on middle management involvement in strategic decision-making depends on which middle-management tasks are automated. Data from 74 middle managers of large firms in Germany, Austria and Switzerland, show that automation of routine tasks can help middle managers to build capacity (both, in terms of time and cognition), offering opportunities to become more involved in strategic decision-making. At the same time, the automation of non- routine tasks precludes middle-managers’ meaningful engagement with strategic narratives. Overall, our study highlights that digital transformation is a double-edged sword for middle managers’ involvement in strategic decision-making – and its effects depend on which aspects are replaced by digital technology.