The Digital Undertow: How the Corollary Effects of Digital Transformation Affect Industry Standards

Abstract

Digital transformation research shows how waves of digitalization produce strategic changes within and across firms, enabling new forms of value creation. We argue that different but no less important processes of digital transformation are generated by the undertow produced by these waves. Digital undertow, a corollary effect of waves of digitalization, profoundly influences how firms operate by transforming the industry standards that coordinate and regulate their core business activities. This is producing what we refer to as digital displacement, a process that is significantly challenging the capacity of standards to effectively manage industry operations in the digital age.