Title: Desperately seeking industrial digital strategy: a dynamic capability approach
Authors: Linnéa Carlsson; Monika Hattinger; Anna Karin Olsson; Ulrika Lundh Snis
Addresses: School of Business, Economics and IT, University West, SE-461 86 Trollhättan, Sweden ' Department of Engineering Science, University West, SE-461 86 Trollhättan, Sweden ' School of Business, Economics and IT, University West, SE-461 86 Trollhättan, Sweden ' School of Business, Economics and IT, University West, SE-461 86 Trollhättan, Sweden
Abstract: This study focuses on managers' perceptions of organisational capabilities for strategy formulation related to industrial digitalisation. A qualitative case study based on ten interviews in two manufacturing companies explores managers' perceptions of industrial digitalisation. A dynamic capability framework, consisting of the organisational capabilities sensing, seizing, and transforming opportunities, is applied to recognise and analyse nuances in managers' interpretation of prevailing organisational capabilities. Findings reveal that the studied companies have a limited maturity concerning knowledge, skills, and resources for industrial digitalisation which is needed in order to formulate a digital strategy. An additional core capability was discerned, i.e., 'seeking'. Seeking includes actions for articulating, appropriating, and involving in the very early phases of understanding and formulating a digital strategy. This article contributes to the existing dynamic capability framework by adding the core capability seeking illustrated in an elaborated and holistic 'dynamic capability loop'. The loop frames industrial digitalisation as a continuous process closely integrated with strategy formulation.
Keywords: digitalisation; industry 4.0; industrial digital strategy; strategy formulation; industrial digitalisation; organisational capability; management; manufacturing industry; dynamic capability framework; case study.
International Journal of Information Systems and Change Management, 2021 Vol.12 No.4, pp.345 - 364
Received: 09 Mar 2021
Accepted: 30 Jan 2022
Published online: 11 May 2022 *