Skip to main content

How Culture and Technology Go Hand-In-Hand in Digital Transformations into an Ecosystem Business

  • Conference paper
  • First Online:
Research and Innovation Forum 2023 (RIIFORUM 2023)

Abstract

The purpose of this paper is to improve current knowledge on culture’s role in a firm’s digital transformation, as well as to identify and add a cultural ‘digital maturity’ lens to an already well-known digital transformation framework. Literature reviews as well as a qualitative study of GE Appliances (GEA) and its transformation into an ecosystem business were conducted between 2021 and January 2023. Findings from interviews were synthesized into a rich thick description of GEA’s transformation between the years 2016 and 2022. GEA was then analyzed by using both an integrated framework on IT-enabled business transformation, as well as using a cultural ‘digital maturity lens’. Early generation of digital transformation frameworks from the field of information systems rarely take into consideration a firm’s culture. More recent research, however, emphasize the role of culture and key cultural attributes, favorable for a digital transformation. By using an actionable established framework, together with a ‘digital maturity’ lens the GEA transformation into an ecosystem business was analyzed and better understood. This paper contributes to a further understanding of the interdependency between a change in culture and digital technologies to succeed in any digital transformation.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Loebbecke, C., Picot, A.: Reflections on societal and business model transformation arising from digitization and big data analytics: a research agenda. J. Strateg. Inf. Syst. 24(3), 149–157 (2015)

    Article  Google Scholar 

  2. Richter, A., Heinrich, P., Stocker, A., Schwabe, G.: Digital work design. Bus. Inf. Syst. Eng. 60(3), 259–264 (2018)

    Article  Google Scholar 

  3. Ghosh, S., Hughes, M., Hughes, P.: Developing dynamic transformation capabilities in high velocity environment: A study of industrial internet companies. In: Strategic Management Society Special Conference, Banff, Canada, June (2017)

    Google Scholar 

  4. Butschan, J., Heidenreich, S., Weber, B., Kraemer, T.: Tackling hurdles to digital transformation—the role of competencies for successful industrial internet of things (IIoT) implementation. Inter. J. Inno. Manage. 23(4) (2019)

    Google Scholar 

  5. Schallmo, D., Williams, C.A., Boardman, L.: Digital transformation of business models—best practice, enablers, and roadmap. Inter. J. Inno. Manage. 21(8) (2017)

    Google Scholar 

  6. Fitzgerald, M., Kruschwitz, N., Bonnet, D., Welch, M.: Embracing digital technology: a new strategic imperative. MIT Sloan Manag. Rev. 55(2), 1 (2014)

    Google Scholar 

  7. Venkatraman, N.: IT-enabled business transformation: from automation to business scope redefinition. Sloan Manage. Rev. 35, 73–73 (1994)

    Google Scholar 

  8. Teece, D.J.: Business models and dynamic capabilities. Long Range Plan. 51, 40–49 (2018)

    Article  Google Scholar 

  9. Ahuja, G., Morris Lampert, C.: Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions. Strateg. Manag. J. 22(6–7), 521–543 (2001)

    Article  Google Scholar 

  10. Christensen, C.M., Bower, J.L.: Customer power, strategic investment, and the failure of leading firms. Strateg. Manag. J. 17(3), 197–218 (1996)

    Article  Google Scholar 

  11. Hill, C.W., Rothaermel, F.T.: The performance of incumbent firms in the face of radical technological innovation. Acad. Manag. Rev. 28(2), 257–274 (2003)

    Article  Google Scholar 

  12. Paap, J., Katz, R.: Anticipating disruptive innovation. Research-Tech. Manage. 47(5), 13–22 (2004)

    Google Scholar 

  13. Rothaermel, F.T.: Incumbent’s advantage through exploiting complementary assets via interfirm cooperation. Strateg. Manag. J. 22(6–7), 687–699 (2001)

    Article  Google Scholar 

  14. Kutzner, K., Schoormann, T., Knackstedt, R.: Digital transformation in information systems research: a taxonomy-based approach to structure the field. In: ECIS, p. 56 (2018)

    Google Scholar 

  15. Alavi, S., Habel, J.: The human side of digital transformation in sales: review & future paths. J. Pers. Selling & Sales Manage. 41(2), 83–86 (2021)

    Article  Google Scholar 

  16. Troisi, O., Grimaldi, M, Visvizi, A.: Digital transformation in tourism ecosystems—what impact on sustainability and innovation? In: Springer Proceedings in Complexity on Research and Innovation Forum 2022-Rupture, Resilience and Recovery in the Post-Covid World, pp.73-81. Springer, Switzerland (2023)

    Google Scholar 

  17. Teichert, R.: Digital transformation maturity: a systematic review of literature. Acta universitatis agriculturae et silviculturae mendelianae brunensis (2019)

    Google Scholar 

  18. Hartl, E., Hess, T.: The role of cultural values for digital transformation: insights from a Delphi study (2017)

    Google Scholar 

  19. Jensen, M.C.: A theory of the firm: governance, residual claims, and organizational forms. Harvard University Press, Cambridge (2000)

    Google Scholar 

  20. Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18(7), 509–533 (1997)

    Article  Google Scholar 

  21. Teece, D.J.: Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strateg. Manag. J. 28(13), 1319–1350 (2007)

    Article  Google Scholar 

  22. Schein, E.: Organizational culture and leadership. Wiley, Hoboken, NJ (2010)

    Google Scholar 

  23. Schein, E.H., Schein, P.A.: The corporate culture survival guide, 3rd edn. Wiley, Hoboken, NJ (2019)

    Google Scholar 

  24. Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., Venkatraman, N.V.: Digital business strategy: toward a next generation of insights. MIS Quart., 471–482 (2013)

    Google Scholar 

  25. Schmid, A.M., Recker, J., Vom Brocke, J.: The socio-technical dimension of inertia in digital transformations. In: Proceedings of the 50th Hawaii International Conference on System Sciences (2017)

    Google Scholar 

  26. Korachi, Z., Bounabat, B.: Integrated methodological framework for digital transformation strategy building (IMFDS). Inter. J. Adv. Comp. Sci. Appl. 10(12) (2019)

    Google Scholar 

  27. Ghosh, S., Steiber, A.: Digitalization’s effect on business model innovation, Chapter 2. Apple Academic Press (2021)

    Google Scholar 

  28. Troisi, O., Visvizi, A., & Grimaldi, M: Digitalizing business models in hospitality ecosystems: toward data-driven innovation. European J. Inno. Manage. 26(7), 242–277 (2023)

    Google Scholar 

  29. Verina, N., Titko, J.: Digital transformation: conceptual framework. In: Proceedings of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering’2019”, Vilnius, Lithuania, 9–10 (2019)

    Google Scholar 

  30. Trenerry, B., Chang, S., Wang, Y., Suhaila, Z.S., Lim, S.S., Lu, H.Y., Oh, P.H.: Preparing workplaces for digital transformation: an integrative review and framework of multi-level factors. Front. Psychol 12 (2021)

    Google Scholar 

  31. Nadkarni, S., Prügl, R.: Digital transformation: a review, synthesis and opportunities for future research. Manage. Rev. Quart. 71(2), 233–341 (2021)

    Article  Google Scholar 

  32. Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., Roig-Tierno, N.: Digital transformation: An overview of the current state of the art of research. Sage Open 11(3) (2021)

    Google Scholar 

  33. Henriette, E., Feki, M., Boughzala, I.: Digital transformation challenges. In: MCIS, p. 33 (2016)

    Google Scholar 

  34. Visvizi, A., Troisi, O., Grimaldi, M., & Loia, F: Think human, act digital: activating data-driven orientation in innovative start-ups. European J. Inno. Manage. 25(6), 452–478 (2022)

    Google Scholar 

  35. Steiber, A., Alänge, S.: The Silicon Valley model, pp. 143–155. Springer International Publishing (2016)

    Google Scholar 

  36. Steiber, A.: Organizational innovations: a conceptualization of how they are created, diffused, and sustained. Chalmers Tekniska Hogskola (Sweden) (2012)

    Google Scholar 

  37. Steiber, A.: Leadership for the digital world—the transformation of GE appliances, management for professionals. Springer International Publishing (2022)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Annika Steiber .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Steiber, A., Alvarez, D. (2024). How Culture and Technology Go Hand-In-Hand in Digital Transformations into an Ecosystem Business. In: Visvizi, A., Troisi, O., Corvello, V. (eds) Research and Innovation Forum 2023. RIIFORUM 2023. Springer Proceedings in Complexity. Springer, Cham. https://doi.org/10.1007/978-3-031-44721-1_1

Download citation

Publish with us

Policies and ethics