Role of Government to Enhance Digital Transformation in Small Service Business

In the digital economy era, small service business struggle to compete in a rapidly changing and dynamic market. Therefore, through digital transformation (DT), small service business seek to increase their competitive advantage, improve business performance, and achieve business growth. Having limited resources and capabilities, small service business must deal with several barriers and challenges. This study aims to discover the barriers, and the roles of government, for digital transformation in small service business. This study applied a qualitative approach involving semi-structured in-depth interviews with top management of small service business. Then, we employed the content analysis method to examine interview data and construct a model. This research reveals four main barriers to digital transformation in small service business: lack of funding, lack of digital capability, lack of human resources, and technical barriers. We found there are four government roles for supporting digital transformation in small service business: build a digital platform for small service business, promote mobile/digital payment, provide digital training, and build a digital collaboration ecosystem. Additionally, based on this study’s findings, a model for barriers and government support of digital transformation in small service business is presented. This study contributes to the conceptual framework and management implications in the digital transformation field. The study’s findings provide insights to practitioners and suggest that the government could alter the current policies and programs to support digital transformation in small service business.

The Digital Transformation of Business Model Innovation: A Structured Literature Review

This paper has a two-fold aim: to analyze the development of the digital transformation field, and to understand the impact of digital technologies on business model innovation (BMI) through a structured review of the literature. The results of this research reveal that the field of digital transformation is still developing, with growing interest from researchers since 2014. Results show a need for research in developing countries and for more collaboration between researchers and practitioners. The review highlights that the field is fragmented among disruptive technologies, shared platforms and ecosystems, and new enabling technologies. We conclude that digital transformation has impacted value creation, delivery, and capture in almost every industry. These impacts have led to the employment of a variety of new business models, such as those for frugal innovation and the circular economy.

Theorizing Actor Interactions Shaping Innovation in Digital Infrastructures: The Case of Residential Internet Development in Belarus

This paper focuses on how digital innovation develops in ecologies of distributed heterogeneous actors with contesting logics, diverse technologies, and various forms of orchestrations. Drawing on the insights from emerging theories of digital innovation augmented by an institutional logics perspective, we examine a case study of how residential internet infrastructure was shaped over 20 years by the interplay of self-organized residential communities, corporate internet service providers (ISPs), and a state ISP. Our analysis of this case leads to the identification of four types of interactions that shape the trajectories of digital infrastructure development beyond direct actor interplays and competitive or collaborative relationships. We label these interactions symbiotic generative, symbiotic mutualistic, parasitic complementary, and parasitic competitive and explain the processes and conditions of their development and their innovation outcomes. Drawing on these findings, we develop a model of symbiotic and parasitic interactions shaping digital infrastructure development and identify key characteristics of the ecologies where these emerge. The case study and the model that emerged aim to contribute to the growing field of research on complex and nonlinear paths of digital innovation development constituted by the dynamics of its distributed agency. The article concludes by highlighting avenues for future research.

Impact of digital transformation on the automotive industry

Digital technologies are transforming the automotive industry and disrupting traditional business models. New business opportunities related to Industry 4.0 are emerging, so companies must adapt to the new environment. The study presents an application of fuzzy-set qualitative comparative analysis (fsQCA) to analyze the future impact of digital transformation on business performance models and the different actors' satisfaction. A wide range of aspects and actors derived from the digital transformation process in the automotive industry are considered. The study covers connected and autonomous driving, mobility as a service, digital information sources in car purchasing, big data, etc. The disruptive effect of the gradual introduction of electric vehicles into the market is also considered, which is boosted by environmental policies on climate change and directives for the potential use of renewable energy sources to power electric vehicles. On the other hand, the study analyses the impacts of digital transformation on the automotive industry from the point of view of different actors, ranging from automobile manufacturers, service providers, public transportation providers, and consumers to governments. The methodology has been successfully applied to a complex case study-based empirical analysis. It presents a novel application of fsQCA to digital transformation in the automotive industry in Spain. The conclusions show that it is necessary to invest in adequate measures for adaptation to digital transformation, and manufacturers will end up having greater profits, productivity, and competitiveness. From the point of view of consumers, there will be access to more and better services and greater satisfaction with the required services.

The impact of information technology culture and personal innovativeness in information technology on digital entrepreneurship success

Purpose

Very little or no study has explored the predictors of behaviour and traits that determine digital entrepreneurship (DE) success. In response, the purpose of this paper is to present a research model that takes information technology (IT) culture as a theoretical lens and personal innovativeness and experience in IT projects as theoretical constructs to predict behaviour and traits that explain DE success.

Design/methodology/approach

Based on the literature review, the authors propose hypotheses and a research model. The authors tested the model using structural equation modelling (SEM), by surveying a sample of digital entrepreneurs operating in the Yabacon Valley, Lagos, Nigeria.

Findings

The results indicate that IT culture is an essential predictor of achieving DE success. The results also suggest that an entrepreneur's innovativeness in IT and experience in IT projects have significant negative and positive moderating effects on the relationship between IT culture and achieving DE success.

Research limitations/implications

This paper taps into a new setting – DE context – by exploring the moderation effects of an entrepreneur's innovativeness in IT and experience in IT projects on the link between their IT culture and achieving a successful DE outcome.

Practical implications

This model offers managers an understanding of how IT culture and personal innovativeness and experience in IT work together to achieve DE success. Meanwhile, it sheds some light on managers to treat individuals with different levels of experience differently.

Originality/value

The authors theorise IT culture, personal innovativeness and experience in IT and show their effects on DE success, thus making an essential contribution to the information systems (ISs) and entrepreneurship research and practice. Moreover, the authors provide a novel methodology to conceptualise IT culture as a second-order hierarchical reflective construct by giving evidence that partial least squares (PLS) path modelling can assess a hierarchical model with moderating effects. This study answers scholars' call to construct more accurate explanations of innovation outcomes in an increasingly digital world.

Usage of Digital Twins Along a Typical Process Development Cycle

Digital methods for process design, monitoring, and control can convert classical trial-and-error bioprocess development to a quantitative engineering approach. By interconnecting hardware, software, data, and humans currently untapped process optimization potential can be accessed. The key component within such a framework is a digital twin interacting with its physical process counterpart. In this chapter, we show how digital twin guided process development can be applied on an exemplary microbial cultivation process. The usage of digital twins is described along a typical process development cycle, ranging from early strain characterization to real-time control applications. Along an illustrative case study on microbial upstream bioprocessing, we emphasize that digital twins can integrate entire process development cycles if the digital twin itself and the underlying models are continuously adapted to newly available data. Therefore, the digital twin can be regarded as a powerful knowledge management tool and a decision support system for efficient process development. Its full potential can be deployed in a real-time environment where targeted control actions can further improve process performance.

Toward an Economically Optimal Team Design in IT-Related Innovation Projects

Driven by the increased relevance of digitalised and hypercompetitive business environments, companies need to focus on IT-related innovation projects (ITIPs) to guarantee long-term success. Although prior research has illustrated that an appropriate team design can increase project performance, an approach for determining the economically optimal team design from an ex ante perspective is missing. Against this backdrop, we follow analytical modelling research and develop a model that determines the optimal team design for an ITIP by transferring central findings of previous research regarding relevant influencing factors, e.g., team size and academic background diversity, into an ex ante economic evaluation. Thereby, our model allows the comparison of different team designs (i.e., team compositions) with regard to the prospective monetary project performance. Generally, the results show that only about a fifth of the random team designs resulted in a positive profit. In contrast, the well-founded, optimal team designs proposed by our model led to a positive profit in almost 90% of all cases. Regarding the influencing parameters, we observe that team size is the most important factor since a deviation from the optimum has a much more significant effect on the expected profit than do other factors such as work experience. To ensure the real-world fidelity and applicability of our model, we discuss the underlying assumptions with two practitioners. Our contribution is manifold: Inter alia, from an academic perspective, we enhance existing research on team design by converting well-accepted qualitative findings from a frequently investigated field outside business administration (i.e., [social] psychology) into a quantitative model that allows for the ex ante economic evaluation of team design parameters. For practitioners, we provide a model that assists managers in designing ITIP teams that are more likely to deliver desired results. This model enables managers to avoid relying only on gut feeling when designing ITIP teams, as is currently often the case due to a lack of alternative approaches.

The Evolutionary Trajectories of Peer-Produced Artifacts: Group Composition, the Trajectories’ Exploration, and the Quality of Artifacts

Members of an online community peer-produce digital artifacts by negotiating different perspectives and personal knowledge bases. These negotiations are manifested in the temporal evolution of the peer-produced artifact. In this study, we conceptualize the evolution of a digital artifact as a trajectory in a feature space. Our theoretical frame suggests that, through negotiations, contributors’ actions “pull” the trajectory and shape its movement in the feature space. We hypothesize that the type of contributors that work on a focal article influences the extent to which that article’s trajectory explores alternative positions within that space, and that the trajectory’s exploration is, in turn, associated with the artifact’s quality. To test these hypotheses, we analyzed the trajectories of wiki articles drawn from two peer-production communities, Wikipedia and Wikia, tracking the evolution of 242 paired articles for over a decade during which the articles went through 536,745 revisions. We found that the contributors who are the most likely to increase the trajectory’s exploration are those that (1) return to work on the focal artifact and (2) are unregistered members in the broader online community. Further, our results show that the trajectory’s exploration has a curvilinear association with article quality, indicating that exploration contributes positively to quality, but that the effect is reversed when exploration exceeds a certain level. The insights derived from this study highlight the value of an artifact-centric approach to increasing our understanding of the dynamics underlying peer-production.

Deal or No Deal? Online Deals, Retailer Heterogeneity, and Brand Evaluations in a Competitive Environment

Daily deal platforms, such as Groupon, peaked in the mid-2000s, by letting retailers offer 50% promotions to consumers using an app. When used right, retailers were able to get consumers to try them for the first time and build a customer base. When used wrong, retailers lost revenue unnecessarily and sometimes went out of business. Even now, in 2020, you can find lovers and haters of daily deals, and yet they remain an integral part of the marketing mix for many retailers. One lingering question about these deals remained: How do customers perceive a retailer that offers daily deals before going to the retailer? Do retailers look desperate or confident? Through a series of laboratory experiments, we test whether offering a deal changes consumers’ preconsumption brand evaluations. Our research shows that brand evaluations are contingent on the retailer type (i.e., price segment and age), the success of the current deals offered (i.e., number of page visits and purchases), and the number of competitors that are also using deals. Together, our work demonstrates specific conditions where offering deals may lead to positive or negative consumer perceptions even before arriving at the retailer.

Configurations for Achieving Organizational Ambidexterity with Digitization

Organizational ambidexterity refers to the capability of businesses to balance the pursuit of radical innovation simultaneously with incremental innovation. It echoes the popular notion that to thrive well in a competitive economy, businesses need to balance their exploration of new markets and products with exploitation or balance operational efficiency with flexibility. Digital technologies have become central to enabling organizational ambidexterity. The analysis reveals how the three dimensions of digitization efforts—IT implementation spending, IT training, and actual IT usage—should be combined with specific internal and external factors to develop greater ambidexterity. Two of these complementary factors are either a centralized organizational structure or a strong supplier and partner network—the first a likely channel for cross-organizational knowledge transfer and the second for interfirm knowledge transfers. However, determining which combinations are useful also depends on the size of the business and competitiveness of markets. Large businesses, or those in more competitive sectors, derive a slightly greater advantage from digitization than small firms or those in less competitive sectors. These findings are useful for policy makers tasked with subsidy allocation to industry sectors and managers when allocating investment spending for digitization.

Continuance Use of Cloud Computing in Higher Education Institutions: A Conceptual Model

Resource optimization is a key concern for Higher Education Institutions (HEIs). Cloud Computing, as the recent generation in computing technology of the fourth industrial revolution, has emerged as the main standard of service and resource delivery. As cloud computing has grown into a mature technology and is being rapidly adopted in many HEIs across the world, retaining customers of this innovative technology has become a challenge to the cloud service providers. Current research trends on cloud computing have sought to study the acceptance or adoption of technology; however, little research has been devoted to the continuance use in an organizational setting. To address this gap, this study aims to investigate the antecedents of cloud computing continuance use in HEIs. Hence, drawing on the prior literature in organizational-level continuance, this research established a conceptual model that extends and contextualizes the IS continuance model through the lens of the TOE framework (i.e., technological, organizational, and environmental influences). The results of a pilot study, conducted through a survey with information and communications technology (ICT) decision makers, and based on the proposed conceptual model, indicate that the instrument is both reliable and valid, and so point the way towards further research. The paper closes with a discussion of the research limitations, contribution, and future directions.

Conceptualising Artificial Intelligence as a Digital Healthcare Innovation: An Introductory Review

Artificial intelligence (AI) is widely recognised as a transformative innovation and is already proving capable of outperforming human clinicians in the diagnosis of specific medical conditions, especially in image analysis within dermatology and radiology. These abilities are enhanced by the capacity of AI systems to learn from patient records, genomic information and real-time patient data. Uses of AI range from integrating with robotics to creating training material for clinicians. Whilst AI research is mounting, less attention has been paid to the practical implications on healthcare services and potential barriers to implementation. AI is recognised as a “Software as a Medical Device (SaMD)” and is increasingly becoming a topic of interest for regulators. Unless the introduction of AI is carefully considered and gradual, there are risks of automation bias, overdependence and long-term staffing problems. This is in addition to already well-documented generic risks associated with AI, such as data privacy, algorithmic biases and corrigibility. AI is able to potentiate innovations which preceded it, using Internet of Things, digitisation of patient records and genetic data as data sources. These synergies are important in both realising the potential of AI and utilising the potential of the data. As machine learning systems begin to cross-examine an array of databases, we must ensure that clinicians retain autonomy over the diagnostic process and understand the algorithmic processes generating diagnoses. This review uses established management literature to explore artificial intelligence as a digital healthcare innovation and highlight potential risks and opportunities.

Organizational Re-Design for Business Model Innovation while Exploiting Digital Technologies: A Single Case Study of an Energy Company

Digital technologies are bringing a wide spectrum of business opportunities as well as significant organizational challenges for incumbent companies operating in traditional industries such as the energy one. The diffusion of new technologies is changing the way energy solutions are consumed and experienced, while consumers increasingly take ownership of their consumption, acting as “prosumers”. In this evolving scenario, incumbents are urged to reshape their business models, explore new opportunities and change their organizational structures accordingly. Still, the required organizational re-design process that enables companies to undergo business model innovation (BMI) while exploiting digital technologies is partially neglected in literature. Hence, this study explores how established companies embrace organizational re-design process to innovate their business model. To this end, we leverage a single case study methodology focused on an incumbent energy company. Our findings show how the establishment of a business unit dedicated to digital technologies exploitation has enabled the company’s BMI. More specifically, we point at the critical role played by the know-how and the industrial capabilities to sustain not only the innovation activities of the new business unit, but also the overall company performance and the shift towards a renewed business model.

Where does knowledge-sharing motivation come from? The case of third-party developer in mobile platforms

Purpose

In mobile platforms, an increasing number of third-party developers (developers) create new ideas and enhance their expertise through knowledge sharing on the developers’ community. Notwithstanding the importance of the sharing and its uniqueness on the mobile platform contexts, the motivational factors of sharing their knowledge on the community have been underinvestigated. Therefore, this paper aims to provide a comprehensive framework to enhance the knowledge sharing in the mobile platform context.

Design/methodology/approach

Based on the theory of reasoned action, this paper incorporated intrinsic and internalized extrinsic motivations with two unique features of platform environments: platform open policies and coopetitive relationships. To test, an online survey was distributed to four developer communities in Korea, two Android and two iOS communities.

Findings

The results show that a platform pursuing higher openness causes the developers to find higher social pressure for information sharing. The coopetitive relationship with other developers in the same platform takes dissimilar roles; reciprocity significantly increases subjective norm, while rivalry does attitude. Self-efficacy and self-development stimulate knowledge sharing. Furthermore, multilevel analysis to capture the difference between two leading mobile platforms indicates no path difference but, interestingly, shows significant mean difference between the two platforms regarding perceived openness and rivalry.

Originality/value

With this paper, the authors fulfill the need to understand the knowledge-sharing intention of developers in the context of mobile platforms where developers can be potential competitors or cooperators and where two platforms offer different policies and developmental environments.

The ownership of digital infrastructure: Exploring the deployment of software libraries in a digital innovation cluster

Boundary resources have been shown to enable the arm’s-length relationships between platform owners and third-party developers that underlie digital innovation in platform ecosystems. While boundary resources that are owned by open-source communities and small-scale software vendors are also critical components in the digital infrastructure, their role in digital innovation has yet to be systematically explored. In particular, software libraries are popular boundary resources that provide functionality without the need for continued interaction with their owners. They are used extensively by commercial vendors to enable customization of their software products, by communities to disseminate open-source software, and by big-tech platform owners to provide functionality that does not involve control. This article reports on the deployment of such software libraries in the web and mobile (Android) contexts by 107 start-up companies in London. Our findings show that libraries owned by big-tech companies, product vendors, and communities coexist; that the deployment of big-tech libraries is unaffected by the scale of the deploying start-up; and that context evolution paths are consequential for library deployment. These findings portray a balanced picture of digital infrastructure as neither the community-based utopia of early open-source research nor the dystopia of the recent digital dominance literature.

Digital ambidexterity in the public sector: empirical evidence of a bias in balancing practices

Purpose

The purpose of this study is to explore and theorize on balancing practices (BP) for digital ambidexterity in the public sector.

Design/methodology/approach

The research is designed as an interpretative case study of a large Swedish authority, involving data collection in the form of interviews and internal documents. The method of analysis involves both theorizing on the findings from a previous framework for digital innovation and deriving design implications for ambidextrous governance.

Findings

The findings show that all identified BP except one (shadow innovation) is directed toward an increased emphasis on efficiency (exploitation) rather than innovation (exploration). With the increased demand for innovation capabilities in the public sector, this is identified as a problem.

Research limitations/implications

The limitations identified are related to the choice in the method of an interpretative case study, with issues of transferability and empirical generalizability as the main concerns. The implications for research are related to a need for additional studies into the enactment of digital ambidexterity, where the findings offer insight and inspiration for continued research.

Practical implications

The study shows that managers and executives involved in the design and imposition of governance within the public sector need to take the design recommendations for digital ambidexterity into consideration.

Social implications

The study offers two main implications for practice. First, policymakers need to take the conceptual distinction of efficiency and innovation into account when designing policies for the digital government. Second, existing funding practices need to be re-designed to better facilitate innovation.

Originality/value

This is the first study directed toward enhancing the insight into BP for digital ambidexterity in the public sector. The study has so far resulted in both a localized shift in policy and new directions for research. With the public sector facing needs for increased innovation capabilities, the study offers a first step toward understanding how this is currently counteracted through governance design.

Closeness and distance: configurational practices for digital ambidexterity in the public sector

Purpose

The purpose of this study is to increase the current understanding of how public sector organizations dynamically balance exploration and exploitation of digital initiatives, i.e. the enactment of digital ambidexterity.

Design/methodology/approach

This study uses Zimmermann, Raisch and Cardinal’s perspective of configurational practices for addressing the enactment of digital ambidexterity. The method comprises a qualitative, interpretative case study of a large municipality in Sweden, using both interviews and secondary data.

Findings

Through the perspective of configurational practices, the study identifies and describes a set of sub-practices that constitute the enactment of digital ambidexterity. This is then used for theorizing how configurational practices involve the balancing of closeness and distance.

Research limitations/implications

This study is limited by being a single, non-longitudinal case of a Swedish municipality that has implications for generalizability and transferability. Moreover, it opens up for new perspectives to the future study of the enactment of ambidexterity in the public sector.

Practical implications

Organizations striving for digital ambidexterity are recommended to use the configurational approach to assess and design their governance to build ambidextrous capabilities through a combination of closeness and distance.

Social implications

This study is aimed at strengthening public sectors abilities for continued relevance for its stakeholders over time. With increased need for digital innovation within the public sector, the findings and recommendations derived from the study lead to increased innovation capability, which in turn is expected to lead to increased relevance of services.

Originality/value

To the best of authors’ knowledge, this is the first study that addresses how ambidexterity is enacted within the public sector following the configurational approach. As such, it opens up for new perspectives on organizational ambidexterity.

Digital Business Model, Digital Transformation, Digital Entrepreneurship: Is There A Sustainable “Digital”?

Digitalization plays a major role in contributing towards the United Nations Sustainable Development Goals. Without transformation of existing businesses, both economic and environmental challenges of the future cannot be solved sustainably. However, there is much confusion on interrelationships and terms dealing with digitization or digitalization: Digital business model, digital transformation, digital entrepreneurship. How do these terms interrelate with and to digitalization, and how do they support firms to grow sustainably? To answer this question, we identified seven core digital-related terms based on a structured literature search within the management and economics domain, namely: Digital, Business Model, Digital Business Model, Digital Technology, Digital Innovation, Digital Transformation, and Digital Entrepreneurship. Thereafter, we analyzed prior literature for deriving a common understanding and definition as a basis for interrelations within a conceptual framework. Definitions were presented in a case study setup with twelve innovation and research and development (R&D) managers from various business units of a German high-tech company. Based on these insights, we propose a conceptual framework on how Digital Readiness, Digital Technology, and Digital Business Models might sustainably relate to Innovation, moderated by a Digital Transformation Process. With this approach, we aim to equip practitioners and researchers alike in handling and addressing change through digitalization sustainably.

Standardization Procedure for Data Exchange

Common specification of data promotes data exchange among many and unspecified individuals and organizations. However, standardization itself tends to discourage innovation that can create new uses of data. To overcome this dilemma of innovation and standardization, this paper analyzes and proposes hypotheses regarding the process through which the World Wide Web Consortium (W3C) has realized innovations such as web applications by updating the standard. I hypothesize the following changes in standardization process management at the W3C as key factors supporting innovation through standardization among stakeholders with conflicting interests: (1) defining the scope of the specifications to be developed according to functions instead of technical structures; (2) design of a development management policy based on feedback from implementations, referred to as an “implementation-oriented policy”; (3) inclusion of diversified stakeholders in open standardization processes that facilitate consensus formation and the diffusion of developed standards; and (4) adopting a royalty-free to encourage third-party developers to implement proposed specifications and advance update of proposals. This single case analysis leads to the development and diffusion of common technological data specifications, which are the driving factors for innovation utilizing big data generated by exchanging data of various origins.

Metahuman systems = humans + machines that learn

Metahuman systems are new, emergent, sociotechnical systems where machines that learn join human learning and create original systemic capabilities. Metahuman systems will change many facets of the way we think about organizations and work. They will push information systems research in new directions that may involve a revision of the field’s research goals, methods and theorizing. Information systems researchers can look beyond the capabilities and constraints of human learning toward hybrid human/machine learning systems that exhibit major differences in scale, scope and speed. We review how these changes influence organization design and goals. We identify four organizational level generic functions critical to organize metahuman systems properly: delegating, monitoring, cultivating, and reflecting. We show how each function raises new research questions for the field. We conclude by noting that improved understanding of metahuman systems will primarily come from learning-by-doing as information systems scholars try out new forms of hybrid learning in multiple settings to generate novel, generalizable, impactful designs. Such trials will result in improved understanding of metahuman systems. This need for large-scale experimentation will push many scholars out from their comfort zone, because it calls for the revitalization of action research programs that informed the first wave of socio-technical research at the dawn of automating work systems.

Making a digital innovator: antecedents of innovativeness with digital technologies

Purpose

To compete in the current digital economy, organizations need a workforce capable of developing novel products/services using digital technologies to create value. The purpose of this study is to explore and understand the antecedents of digital innovativeness so that we can appropriately train the workforce.

Design/methodology/approach

The authors theorize a model linking four individual characteristics (entrepreneurial orientation, digital literacy, entrepreneurial self-efficacy and digital technology self-efficacy) to digital innovativeness. They frame four hypotheses and validate them using a survey.

Findings

This study reveals that two antecedents of individual digital innovativeness linked to personal beliefs of competency are correlated to an individual's digital innovativeness. It also challenges long-held assumptions in technology education and industry by revealing that two other factors typically associated with digital innovativeness – basic digital literacy and entrepreneurial orientation – do not relate to the individual's digital innovativeness.

Originality/value

We believe that the study is the first of its kind to examine the antecedents of digital innovativeness with an eye on the characteristics necessary to innovate with digital technologies to create value. By hiring employees exhibiting high levels of these characteristics, promoting a culture of experimentation and educating its workforce to gain confidence in its abilities to execute and deploy digital technologies, organizations can secure their strategic position in a business landscape driven by digital innovations.