As proliferating digital literature ignores how digital opportunities are generated in the first place, digital innovation and transformation can be ontologically ungrounded. To fill this gap, following a realist perspective of entrepreneurship, this article examines digital opportunities as profit propensities afforded by a digitalized environment, while treating digital innovation and transformation as the actualization process. To elaborate, first, we coin Digitalized Opportunity Space (DOS) to describe the digitalized environment as a critical intersection of four spaces - resource, utility, digital, and institutional- that muster conditions without which digital opportunities cannot be actualized. Second, we develop four managerial archetypes - resource orchestrators, utility integrators, digital evangelists, and institutional realists- who tend to recognize digital opportunities based on their organizational location and thereby endorse different digital innovations. Third, to facilitate a systemic and balanced approach to digital transformation, we recommend group-level heuristics - the generic density perspective, the ecosystem view of the firm, multi-dimensional network effects, and disciplined imagination- which restore totality from partiality. Taken together, the DOS framework (of opportunity generation), the managerial archetypes (of opportunity recognition), and the group-level heuristics (of opportunity actualization) constitute the opportunity-centric (vs technology-centric or organization-centric) perspective on digital innovation and transformation, thereby materializing the connection between digital literature and entrepreneurship.
Read full abstract