Seems Legit! Conceptualizing the Role of Legitimacy in Collective Action for Digital Innovation

Abstract

The effect of digital transformation on organizing innovation as collective action is still underexplored. Organizational reality shows that nascent organizational units, which we label Digital Innovation Units (DIUs), emerge as actors driving the digital transformation of organizational innovation. Yet, DIUs’ innovation endeavors and internal collaboration efforts still seem challenging for many organizations. We argue that the mere presence of DIUs challenges institutionalized innovation structures and actor arrangements, for instance regarding the legitimate roles of research and development (R&D) units or IT units (ITUs) in digital innovation processes, and impedes collective actions. This trend demands a theoretical reevaluation of how to think about collective action for digital innovation. Adopting an institutional perspective, we build on the collective action of institutional innovation model and consider the role of organizational legitimacy in constructing collective action of R&D, ITUs and DIUs for digital innovation. We offer a complementary intra-organizational dimension by modifying the model’s four central elements and simultaneously transfer its theoretical base into the digital era. By elaborating on the contemporary challenges associated with organizing for digital innovation in general, and with collective action with DIUs in particular, our conceptualization offers crucial insights into the organizational underpinnings enabling collective action for digital innovation.