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Beyond Digital Inventions—Diffusion of Technology and Organizational Capabilities to Change

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Legal Tech, Smart Contracts and Blockchain

Part of the book series: Perspectives in Law, Business and Innovation ((PLBI))

Abstract

Digitalization is currently creating numerous opportunities for value creation in intellectual industries. In the legal industry however, the vast majority of law firms have remained the same without responding to the rising opportunities. The reluctance in the mainstream legal industry to adopt new digital technologies has created a duality to the field (with legal tech enthusiasts on one side and traditional sceptics on the other). This chapter explores why and discusses the connection between industrial diffusion and capabilities to change residing in individual firms. We relate digitalization to technological shifts in the past and explore the specific challenges and barriers for a digital transformation among law firms . We find that most law firms neither have the technological capabilities nor the economical motivation to change, why digitalization has, instead, become a source of fear. However, in order to seize digital opportunities and adapt to the constantly, and rapidly, changing environment, law firms need to overcome this fear and develop organizational capabilities to change. We conclude that for a true industrial transformation—beyond digital inventions—we cannot only focus on the presence of new technologies but we also need to address the diffusion of them.

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Notes

  1. 1.

    Kagermann (2015), pp. 23–45.

  2. 2.

    See, e.g., generally, Pasmore (2015); see, e.g., generally, Pasmore (2018).

  3. 3.

    Reeves and Deimler (2011), pp. 134–141.

  4. 4.

    Brynjolfsson and McAfee (2014), pp. 14–37.

  5. 5.

    Huang and Rust (2018), pp. 155–172.

  6. 6.

    Barrett et al. (2015), pp. 135–154.

  7. 7.

    Teece (2018), pp. 40–49.

  8. 8.

    Brescia (2015), pp. 203–222; and, generally, Susskind and Susskind (2015).

  9. 9.

    Christensen et al. (2013), pp. 106–114.

  10. 10.

    Kronblad (2017), p. 16193.

  11. 11.

    Fredberg and Pregmark (2016), pp. 185–219.

  12. 12.

    Pregmark (2016), pp. 26–27.

  13. 13.

    David (2007), pp. 91–114.

  14. 14.

    Bernstein (2010), pp. 2257–2312.

  15. 15.

    Crouch (1992), pp. 80–92.

  16. 16.

    Carlson and Gorman (1992), pp. 48–79.

  17. 17.

    Rosenberg (1974), pp. 90–108.

  18. 18.

    Bernstein (2010), pp. 2257–2312.

  19. 19.

    See, e.g., generally, Rogers (1962).

  20. 20.

    Rosenberg (1974), pp. 90–108; See, e.g., generally, Rogers (1962).

  21. 21.

    See, e.g., generally, Pasmore (2015); Johansen (2017), pp. 1–27.

  22. 22.

    Johansen (2017), pp. 1–27; See, generally, Pasmore (2015).

  23. 23.

    Utterback and Abernathy (1975), pp. 639–656.

  24. 24.

    Kagermann (2015), pp. 23–45.

  25. 25.

    See, e.g., generally, Schwab (2017).

  26. 26.

    Seely (2003), pp. 7–48.

  27. 27.

    See, e.g., generally, Fredberg (2003).

  28. 28.

    Ihlström et al. (2008), pp. 29–57.

  29. 29.

    Fredberg and Pregmark (2016), pp. 212–214.

  30. 30.

    Patel et al. (2009), pp. 5–17.

  31. 31.

    See, e.g., generally, Ito et al. (2017).

  32. 32.

    See, e.g., generally, Goodwin (2015).

  33. 33.

    Rosenberg (1974), pp. 90–108; see, e.g., generally, Rogers (1962).

  34. 34.

    See, e.g., generally, Pasmore (2015); see, e.g., generally, Johansen (2017).

  35. 35.

    See, e.g., generally, Rogers (1962); Rosenberg (1974), pp. 90–108.

  36. 36.

    See, e.g., generally, Christensen (1997).

  37. 37.

    Beer (2009), pp. 223–230.

  38. 38.

    See, e.g., generally, Pasmore (2015); Beer (2009), pp. 19–25; see, e.g., generally, Galbraith (2014).

  39. 39.

    See, e.g., generally, Galbraith (2014).

  40. 40.

    See, e.g., Beer (2007); see, e.g., generally, Pasmore (2015); Fredberg and Pregmark (2016).

  41. 41.

    Teece et al. (1997), pp. 509–533; Teece (2018), pp. 40–49; Huy (2005), pp. 3–37; Pregmark (2016), pp. 26–27.

  42. 42.

    Eisenbach et al. (1999), pp. 80–89.

  43. 43.

    See, e.g., generally, Galbraith (2014).

  44. 44.

    Tushman and O’Reilly (1996), pp. 10–30; Smith et al. (2010), pp. 468–461.

  45. 45.

    See, e.g., generally, Pasmore (2015); see, e.g., generally, Beer (2009).

  46. 46.

    Pregmark (2016), pp. 15–30; Kronblad (2018), p. 18075.

  47. 47.

    Kronblad (2018), p. 18075.

  48. 48.

    Trader-Leigh (2002), pp. 138–155.

  49. 49.

    Trader-Leigh (2002), pp. 138–155.

  50. 50.

    See, e.g., generally, Beer (2007).

  51. 51.

    Rock (2008), pp. 44–52.

  52. 52.

    Mabin et al. (2001), pp. 168–191.

  53. 53.

    See, e.g., generally, Pasmore (2015); see, e.g., generally, Pasmore (2018).

  54. 54.

    See, e.g., generally, Coch and French (1948); see, generally, Lawrence (1969); see, generally, Cawsey (2012).

  55. 55.

    Lawrence (1969), p. 6.

  56. 56.

    Teece et al. (1997), pp. 40–49; Teece (2018), pp. 509–533; Eisenhardt and Martin (2000), pp. 1105–1122.

  57. 57.

    Teece et al. (1997), pp. 509–533.

  58. 58.

    Beer (2013), pp. 27–33.

  59. 59.

    Beer (2013), p. 32.

  60. 60.

    Huy (1999), pp. 325–345; Huy (2005), pp. 3–37.

  61. 61.

    Huy (1999), pp. 325–345; Huy (2005), pp. 3–37; see, e.g., generally, Amabile and Kramer (2011).

  62. 62.

    Rock (2008), pp. 44–52; Heskett (2007), pp. 1–2.

  63. 63.

    Fainschmidt and Frasier (2017), pp. 550–566.

  64. 64.

    Fredberg and Pregmark (2016), pp. 185–219.

  65. 65.

    See, e.g., generally, Kotter (2008).

  66. 66.

    See, e.g., generally, Beckhard and Harris (1987).

  67. 67.

    Pregmark (2016), pp. 28–30.

  68. 68.

    See, e.g., generally, Pasmore (2015); see, e.g., generally, Johansen (2017).

  69. 69.

    See, e.g., generally, Shuen (2008); Shuen and Sieber (2009), pp. 58–65.

  70. 70.

    Rosenberg (1974), pp. 90–108.

  71. 71.

    See, e.g., generally, Løwendahl (2009).

  72. 72.

    Levin and Tadelis (2005), pp. 131–171.

  73. 73.

    See, e.g., generally, Maister (2003).

  74. 74.

    Greenwood et al. (2002), pp. 58–80.

  75. 75.

    von Nordenflycht (2010), pp. 155–174.

  76. 76.

    Morris and Pinnington (1998), pp. 3–24.

  77. 77.

    Kronblad (2018), p. 18075.

  78. 78.

    Garoupa (2013), p. 77–86.

  79. 79.

    Kronblad (2018), p. 18075.

  80. 80.

    See, e.g., generally, Pasmore (2015).

  81. 81.

    Rosenberg (1974), pp. 90–108.

  82. 82.

    Rosenberg (1974), pp. 90–108.

  83. 83.

    See, e.g., generally, Pasmore (2015); Beer (2009), pp. 9–13.

  84. 84.

    See, e.g., generally, Beer (2007).

  85. 85.

    See, e.g., generally, Chesbrough (2003) and Galbraith (2014).

  86. 86.

    Rosenberg (1974), pp. 90–108.

  87. 87.

    Kronblad (2018), p. 18075.

  88. 88.

    Smets et al. (2017), pp. 203–239.

  89. 89.

    Kronblad (2018), p. 18075.

  90. 90.

    See, e.g., generally, Kotter (2008).

  91. 91.

    See, e.g., generally, Pasmore (2015).

  92. 92.

    Johansen (2017), pp. 1–27; see, e.g., generally, Pasmore (2015).

  93. 93.

    See, e.g., generally, Beer (2007); Rock (2008), pp. 44–52; Mabin et al. (2001), pp. 168–191.

  94. 94.

    See, e.g., generally, Lawrence (1969).

  95. 95.

    Fredberg and Pregmark (2016), pp. 185–219; Pregmark (2016), pp. 2–30; Kronblad (2018), p. 18075.

  96. 96.

    See, e.g., generally, Beer (2007); Mabin et al. (2001), pp. 168–191.

  97. 97.

    See, e.g., generally, Pasmore (2018).

  98. 98.

    Utterback and Abernathy (1975), pp. 639–656.

  99. 99.

    Teece et al. (1997), pp. 509–533; Beer (2013), pp. 30–33.

  100. 100.

    Teece et al. (1997), pp. 509–533.

  101. 101.

    Huy (1999), pp. 325–345.

  102. 102.

    Pregmark (2016), pp. 10–30.

  103. 103.

    Fainschmidt and Frasier (2017), pp. 550–566.

  104. 104.

    Fredberg and Pregmark (2016), pp. 185–219.

  105. 105.

    See, e.g., generally, Huy (2005).

  106. 106.

    Pregmark (2016), pp. 10–30.

  107. 107.

    Fainschmidt and Frasier (2017), pp. 550–566.

  108. 108.

    Fredberg and Pregmark (2016), pp. 185–219.

  109. 109.

    Beer (2013), pp. 27–33.

  110. 110.

    Kronblad (2018), p. 18075.

  111. 111.

    See, e.g., generally, Johansen (2017); see, e.g., generally, Pasmore (2015).

  112. 112.

    See, e.g., generally, Shuen (2008); Shuen and Sieber (2009), pp. 58–65.

  113. 113.

    See, e.g., generally, Johansen (2017).

  114. 114.

    Kronblad (2018), p. 18075.

  115. 115.

    See, e.g., generally, Beer (2007).

  116. 116.

    See, e.g., generally, Beer (2007).

  117. 117.

    Smets et al. (2017), pp. 203–239.

  118. 118.

    Fainschmidt and Frasier (2017), pp. 550–566.

  119. 119.

    See, e.g., generally, Johansen (2017); see, e.g., generally, Pasmore (2015).

  120. 120.

    See, e.g., generally, Johansen (2017).

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Authors and Affiliations

  1. Department of Technology Management and Economics, Chalmers University of Technology, Gothenburg, Sweden

    Charlotta Kronblad & Johanna E. Pregmark

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  1. Charlotta Kronblad
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  2. Johanna E. Pregmark
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Correspondence to Charlotta Kronblad .

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Editors and Affiliations

  1. Institute of European and American Studies, Academia Sinica, Taipei, Taiwan

    Marcelo Corrales

  2. Faculty of Law, Kyushu University, Fukuoka, Japan

    Mark Fenwick

  3. School of Accounting and Finance, University of Vaasa, Vaasa, Finland

    Helena Haapio

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Kronblad, C., Pregmark, J.E. (2019). Beyond Digital Inventions—Diffusion of Technology and Organizational Capabilities to Change. In: Corrales, M., Fenwick, M., Haapio, H. (eds) Legal Tech, Smart Contracts and Blockchain. Perspectives in Law, Business and Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-13-6086-2_5

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