Digital transformation: The interplay of explorative and exploitative capability development

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Conference article in proceedings
Date
2020-01-07
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Language
en
Pages
11
1-11
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Abstract
This research focuses on the firms’ capability development in the era of digital transformation. We empirically investigate how firms operating in heavy industry extend their capabilities through explorative and exploitative capability development. Our study uncovers that firms in the industry tend to begin with exploitation and gradually extended to exploration. Our findings highlight the importance and necessity of adopting network capabilities both for execution of transformation activities, and for developing internal capabilities. The empirical evidence indicates that inter-organizational ambidexterity is essential for unleashing the full potential of digital transformation, and that ambidexterity can be achieved through a combination of internal and external capabilities.
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Keywords
Digital transformation, ambidexterity, exploration, exploitation, knowledge search
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Citation
Gao , S , Hakanen , E & Rajala , R 2020 , Digital transformation: The interplay of explorative and exploitative capability development . in Proceedings of the 53rd Hawaii International Conference on System Sciences . Hawaii International Conference on System Sciences , pp. 4306-4315 , Annual Hawaii International Conference on System Sciences , Maui , Hawaii , United States , 07/01/2020 . https://doi.org/10.24251/HICSS.2020.527