Title: Digitalisation and complementary integration: a case study of a Chinese real estate company

Authors: Xin-zhi Chang; Xie-lin Liu

Addresses: School of Economics and Management, University of Chinese Academy of Sciences, Beijing, 100190, China ' School of Economics and Management, University of Chinese Academy of Sciences, Beijing, 100190, China; School of Entrepreneurship and Management, ShanghaiTech University, Shanghai, 201210, China

Abstract: In the digital age, incumbents are seeking new strategies to address their lack of digital capabilities and resources. To avoid disruption, complementary integration offers incumbents a mean to explore creative destruction proactively. Complementary integration is organised around dynamic capabilities and resource management, transforming incumbents' identities through implementing complementary activities to achieve value chain integration. However, few empirical studies have explained how complementary integration is achieved. Focusing on the development of construction robots by a Chinese real estate company, this paper uses dynamic capabilities and resource management theories to show how incumbents can achieve complementary integration through digital upgrading. The paper emphasises that the ability to identify complementary industries, seize and bundle complementary resources, and re-configure and leverage complementary capabilities helps to transform traditional incumbents into complementary industry leaders. This process leads to the emergence of complementary integration strategies, which create a new industry and market logic. In addition, the paper emphasises the nuances of complementary integration and cross-boundary disruption in expanding the boundary of firms.

Keywords: digitalisation; complementary integration; incumbents; dynamic capabilities; construction robots.

DOI: 10.1504/IJTM.2025.143595

International Journal of Technology Management, 2025 Vol.97 No.2/3, pp.410 - 439

Received: 27 Sep 2022
Accepted: 09 May 2023
Published online: 02 Jan 2025 *

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