Cycles of Innovation and Alignment in Digital Transformation: Investigating the Dynamics of Resource Recombination in a Construction Firm

Abstract

The generative nature of digital technology implies that during digital transformation (DT), organizations traverse multiple cycles of innovation and resource alignment. Still, extant research mainly chronicles DT as linear and contained phenomenon occurring in response to a dramatic environmental change event.How new resources align with previous ones into novel combinations, the work that supports continuous organizational capability building, and the temporal relationships between cycles of change in DT has received scant attention. Drawing on dynamic capability theory, we analyze innovation and resource alignment cycles driving DT at Lundqvist Trävaru AB, a small Swedish construction firm. Our study has at least two contributions. First, the analysis reveals three types of dynamic capabilities that shape resource generation and alignment in DT. Second, we provide a process model outlining the innovation and alignment cycles that fuel DT as they scale in the focal firm.

Unpacking construction site digitalization: the role of incongruence and inconsistency in technological frames

“…Firms that experiment with digital technology's capabilitiesincluding construction firms (e.g. Boland et al 2007, Lundberg et al 2020)may acquire diverse opportunities for process, product and service innovations (Yoo et al 2010, Nyl en and Holmstr€ om 2015, Nambisan et al 2017. However, despite increases in digital technology investments, the construction industry is still slowly harnessing infrastructural and combinatorial benefits (Morgan 2019, Hall et al 2020.…”

“…Pervasive, combinatory digital technologies trigger new opportunities for digitalization and innovation in the construction industry (e.g. Slaughter 2000, Boland et al 2007, Lundberg et al 2020. However, despite rapidly increasing digital technology investments, the industry is slowly harnessing the benefits (Jacobsson et al 2017) for reasons including project-based logic, fragmented value chains, and monolithic IT-systems (Dubois and Gadde 2002b, Jacobsson and Linderoth 2010, Hall et al 2020.…”

A business transformation model to enhance the sustainability of small-sized family businesses

“…Goerzig and Baurnhansl (2018) explain that digital transformation is a company's changes initiated by competitive advantage through the information technology evolution (Barann et al, 2019). Leuven (2019) states that digital transformation is a continuous interaction between digital technology, business and society, which have transformational effects on velocity, scope, and impact processes (Lundberg & Sandberg, 2020).…”

“…Business transformation refers to the process of applying technology, which drastically changes business methods. Business transformation is a fundamental change in a company's business processes (Lundberg & Sandberg, 2020). Small family businesses need business transformation to enhance sustainability.…”

Introduction to the Minitrack on Making Digital Transformation Real

“…The introduction of this new technology leads to an innovation cycle that needs to be aligned with resources. The researchers develop a process model from their empirical model, showing the importance of scanning, designing, and evaluating as dynamic capabilities [8].…”