Managing Technological Change in the Digital Age: The Role of Architectural Frames

Cross border e-commerce development and enterprise digital technology innovation-empirical evidence from listed companies in China

As the main form of digital trade, cross-border e-commerce plays an important role, allowing China to expand its opening-up and promote the optimal foreign trade structure. It also provides opportunities for Chinese enterprises to develop digital technology. From the perspective of the establishment of China's cross-border e-commerce comprehensive pilot zone (CBECPZ), this article uses the multi-period DID method to examine the effects of cross-border e-commerce on enterprise digital technology innovation based on listed companies in the Shanghai and Shenzhen stock markets from 2007 to 2020. The CBECPZ dramatically promotes enterprise digital technology innovation. The mechanism test shows that the CBECPZ promotes digital technology innovation by financing constraint alleviation, digital transformation, and producer service industry agglomeration. The heterogeneity test shows that the direct effect is more significant in the enterprises of large-scale, non-state-owned, with high ICT correlation and in areas with strong government resource allocation capabilities. The research findings have important reference value for how to utilize cross-border e-commerce to promote digital technology innovation, and they also provide directional references for other developing countries to develop cross-border e-commerce.

The impact of digital infrastructure on provincial green innovation efficiency-empirical evidence from China

In the epoch of the digital economy, technological innovation and energy conservation are significantly facilitated by digital infrastructure, leading to substantial improvements in green innovation efficiency at the provincial level. This study employed the feasible generalized least square (FGLS) method to examine the effects of digital infrastructure on the green innovation efficiency across 30 provinces in the Chinese mainland, utilizing panel data from 2011 to 2020. Additionally, this investigation delves into the intervening role of industrial structure upgrading and the amplifying effects of environmental regulation and human capital on the process. Findings indicate that, to begin with, digital infrastructure contributes to the meaningful enhancement of green innovation efficiency within provinces. Subsequently, the industrial structure upgrading partially mediates the impact of digital infrastructure on the efficiency of provincial green innovation. Lastly, both human capital and environmental regulations amplify the beneficial influence of digital infrastructure on the effectiveness of green innovation at the provincial level. This study provides valuable insights into the mechanisms through which digital infrastructure boosts green innovation efficiency, aiding policymakers in formulating appropriate policies to augment digital infrastructure, thereby promoting provincial green innovation efficiency.

Addressing unforeseen public health risks via the use of sustainable system and process management

During the coronavirus disease 2019 (COVID-19) pandemic, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), which was designated by the World Health Organization in January 2020 as a newly emerging coronavirus in 2019, and its variants have placed unbearable strain on the healthcare systems of various countries, with serious implications for sustainable development worldwide. Researchers have proposed several solutions, such as the use of digital technologies to improve prevention systems. However, the challenges of epidemic prevention and control failures have not been addressed fundamentally, as the key causes of epidemic failures (i.e., outbreaks) and strategies for process management have been neglected. The purpose of the current study is to address these issues by exploring the causes of epidemic prevention and control failure and targeting improvement strategies that combine system structure of epidemic prevention and process management. Specifically, following an exploration of the main reasons for COVID-19 prevention and control failures through a case study of two tertiary hospitals, this paper outlines a targeted prevention and control system based on triangular validation and a loosely coupled process management framework and verifies the expected results using simulation methods together with statistical data on the spread of SARS-CoV-2 in Wuhan, China. The findings not only advance the development of epidemic risk prevention and control theory, especially the complementary nature of IT applications and process management in the field of epidemic risk prevention and control, but also provide guidance on the innovation and implementation of epidemic prevention and control systems and process management and recommendations for countries to promote sustainable development from a health-focused perspective.

Digital entrepreneurship from cellular data: How omics afford the emergence of a new wave of digital ventures in health

Data has become an indispensable input, throughput, and output for the healthcare industry. In recent years, omics technologies such as genomics and proteomics have generated vast amounts of new data at the cellular level including molecular, structural, and functional levels. Cellular data holds the potential to innovate therapeutics, vaccines, diagnostics, consumer products, or even ancestry services. However, data at the cellular level is generated with rapidly evolving omics technologies. These technologies use scientific knowledge from resource-rich environments. This raises the question of how new ventures can use cellular-level data from omics technologies to create new products and scale their business. We report on a series of interviews and a focus group discussion with entrepreneurs, investors, and data providers. By conceptualizing omics technologies as external enablers, we show how characteristics of cellular-level data negatively affect the combination mechanisms that drive venture creation and growth. We illustrate how data characteristics set boundary conditions for innovation and entrepreneurship and highlight how ventures seek to mitigate their impact.

Supplementary Information

The online version contains supplementary material available at 10.1007/s12525-023-00669-w.

Digital Gifts at the Workplace

This study builds on the emergence of new gifting practices using e-hongbaos which are monetary gifts transferred between individuals made possible by digital communication platforms. This is an exploratory study on the impact of these innovations on intra-organizational relationships. Three types of intra-organizational relationships are considered: the employee's relationship with the organization, with the team, and with the manager. The findings of the study indicate positive impacts of e-hongbao at all organizational levels. The authors also identify the varying effects of e-hongbao on intra-organizational relationship outcomes depending on the occasion of gifting, as well as the mode, direction, and measure. Specifically, ‘group' e-hongbao, a gamified group-gift enabled by the digitalization of gifting, has the strongest influence on intra-organizational relationships. The authors discuss the implications of these findings for theory and practice in the workplace and also offer future research directions.

How to Achieve Swift Resilience: the Role of Digital Innovation Enabled Mindfulness

Contributed to by the prevalence of digital technology, various cases of new ventures achieve resilience quickly despite experiencing hardship. Growing attention has been devoted to mindfulness-being alert and acting swiftly-to explain recovery. Scholars have primarily focused on mindful resource preparation pre-crisis. Nevertheless, how to mindfully organize resources as a crisis occurs remains under-explored. Based on an inductive study of a ride-sharing vehicle venture, which rapidly became an open service platform during the COVID-19 pandemic in China, we develop a framework termed "swift resilience" to understand how new ventures mindfully organize resources, driven by digital innovation. In particular, we critically trace three mechanisms-"data-driven stretching," "collective sharing," and "rapid pivoting"-and develop a process model to understand how new ventures build swift resilience. Our emerging findings shed light on the scholarship of organizational resilience, mindfulness, and digital entrepreneurship, and provide guidance to managers on achieving resilience quickly.

Extending Digital Ventures Through Templating

A powerful way of growing digital ventures is templating. Templating involves the generation and use of generic solutions across business areas to reduce cost and increase speed. There are three main processes with which ventures can improve templating: concepting, generalizing, and porting. This paper describes these processes and proposes implications for managers engaged in growing their digital venture.

Steps toward a digital ecology: ecological principles for the study of digital ecosystems

The notion of digital ecosystems has become a fruitful metaphor for examining the effects of digitalization across boundaries of organization, industry, lifeworld, mind, and body. In business-economic terms, the metaphor has inspired IS research into new business models, while in engineering terms, it has led to important insights into the design and governance of digital platforms. Studying digital ecosystems in these terms, however, makes it difficult to trace and explain those effects of digitalization, which do not materialize predominantly in economic and engineering patterns. Important relationships and their effects may therefore go unnoticed. In response, I draw on the ecological epistemology of Gregory Bateson and others to contribute an ecological approach to digital ecosystems. Such an understanding, I argue, expands the possibilities for tracing and explaining the wide-reaching, boundary-crossing effects of digitalization and the runaway dynamics they may lead to. I suggest to do this based on three principles: (1) part-of-ness—phenomena are to be observed as always part of a larger ecosystem; (2) systemic wisdom—ecosystems have limits, which need to be respected; and (3) information ecology—ecosystems are not mechanical but informed, cognitive systems. As my contribution, I propose six avenues for future IS research into digital ecology.

Digital Transformation Readiness Factors in Healthcare

Recently, technological transformation has led to critical innovations in the health sector. Hospitals can provide much better services via digital transformation. However, the desired result cannot be achieved due to the lack of organizational preparation for digital transformation. This article has introduced criteria to measure the readiness for digital transformation, and the analysis of these criteria was performed using Explanatory and Confirmatory Factor analysis. The proposed structure includes 21 items under five factors: Management Support, Current Status Tracking, Corporate Culture, Resource Reservation and Service Management. Exploring the factors for Digital readiness will be a guide for researchers, hospitals and practitioners.

Capabilities for value co-creation and value capture in emergent platform ecosystems: A longitudinal case study of SAP’s cloud platform

Companies across industries are shifting toward a platform ecosystem strategy. By leveraging cloud computing technologies, companies aim to benefit from collaboration with a wide range of third-party developers within emergent platform ecosystems. To succeed, these companies need to develop new organizational capabilities to co-create and capture value in platform ecosystems. To understand what capabilities are crucial to establish platform ecosystems and how they contribute to value co-creation and value capture, we conducted a multi-year, in-depth case study of SAP’s cloud platform project. We identified (1) technology-related capabilities (cloud-based platformization, open IT landscape management) and (2) relationship-driven capabilities (ecosystem orchestration, platform evangelism, platform co-selling) and illustrate how these capabilities help the platform owner to enable and balance value co-creation and value capture in an emergent platform ecosystem. With our findings, we contribute to the discussion on how companies can overcome the challenging emergent phase of platform ecosystems. We thereby bridge literature on value creation in platform ecosystems and on organizational capabilities. Though we conducted our study in the context of the enterprise software industry, we discuss how our findings apply to prospective platform owners from different contexts.

Emerging trends in digital transformation: a bibliometric analysis

Purpose

Ubiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis.

Design/methodology/approach

By performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM, this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software.

Findings

The study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain.

Research limitations/implications

The study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams.

Practical implications

For the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently.

Originality/value

This study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.

Sustainable Growth Variables by Industry Sectors and Their Influence on Changes in Business Models of SMEs in the Era of Digital Transformation

SMEs around the world are constantly under threats to their survival and sustainable growth. This study evaluated the variables influencing the sustainable growth of SMEs in the technological evolution of digital transformation. I propose a business model innovation strategy for the sustainable growth of SMEs. Furthermore, I evaluated the variables influencing growth by industry sector and present strategies for innovation in the business model. Data were collected from 205 CEOs in six sector industries in Korea, and I investigated the effect of variables that affected the company’s sustainability when introducing digital transformation. A partial least-squares regression was used for the statistical analysis and was performed using a data group analysis. I found that the SME performance varied by industry and that technological competency had a mediating effect. The variables that most affected the SME performance were management, technology, and technical competence in marketing and innovation. This research went beyond the limitations of studying only the effects of each of the previous literature variables through causal studies linking these variables. The variables affecting the performance of the industries were found to be different. By comparing the variables that led to a difference in performance in the industrial sector, I developed a business model innovation strategy that can affect the sustainable performance of SMEs.

Boundary negotiations: a paradox theoretical approach for efficient and flexible modular systems

Purpose

The purpose of this paper is to explore the interplay between firm boundary decisions and the management of both efficiency and flexibility and the implications this has for modular design in the provision of advanced services.

Design/methodology/approach

A single case study in the defence industry employs semi-structured interviews supplemented by secondary data. Data are analysed using thematic analysis.

Findings

The findings provide a process model of boundary negotiations for the design of efficient and flexible modular systems consisting of three phases; boundary ambiguity, boundary defences and boundary alignment.

Practical implications

The study provides a process framework for boundary negotiations to help organisations navigate the management of both-and efficiency and flexibility in the provision of advanced services.

Originality/value

Drawing upon modularity, paradox and systems theory, this article provides novel theoretical insight into the relationship between firm boundary decisions and the management of both-and efficiency vs. flexibility in the provision of product upgrade services.

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.

The Impact of Information Technology Capabilities of Manufacturing Enterprises on Innovation Performance: Evidences from SEM and fsQCA

With the development of national strategies (such as Industrial 4.0 and Made in China 2025), how to build digital enterprises and cultivate innovation capabilities of enterprises has become a critical problem to Chinese manufacturing enterprises. However, the literature on the specific path of information technology (IT) capabilities to the innovation of enterprises is still lacking a body of relevant empirical research. In particular, it has not yet thought to explore the information technology capabilities, digital transformation, and then innovation performance of manufacturing enterprises. By performing a questionnaire investigation for 138 Chinese manufacturing enterprises, this study adopted both a fuzzy-set qualitative comparative analysis (fsQCA) and structural equation modeling (SEM) to explore the set relations of the conjunctions and conditions and the statistical associations by studying the relationships among information technology capabilities, digital transformation and innovation performance. The results show that the positive impacts of information technology capabilities on the process innovation performance and the digital transformation, as well as the positive impacts of digital transformation on both process innovation performance and product innovation performance. Specifically, digital transformation takes on a new function of partial mediation of IT capabilities and process innovation performance, and digital transformation functions as a complete mediator for IT capabilities and product innovation performance. The combinations of causal recipes related to innovation performance are provided by a fuzzy-set qualitative comparative analysis (fsQCA). Through the analyses of SEM and fsQCA, this research develops the formation mechanisms of both process innovation performance and product innovation performance, and provides guidance for both IT and innovation management of manufacturing enterprises in China.

Platforms as service ecosystems: Lessons from social media

The growing business expansion of social media platforms is changing their identity and transforming the practices of networking, data and content sharing with which social media have been commonly associated. We empirically investigate these shifts in the context of TripAdvisor and its evolution since its very establishment. We trace the mutations of the platform along three stages we identify as search engine, social media platform and end-to-end service ecosystem. Our findings reveal the underlying patterns of data types, technological functionalities and actor configurations that punctuate the business expansion of TripAdvisor and lead to the formation of its service ecosystem. We contribute to the understanding of the current trajectory in which social media find themselves as well as to the literature on platforms and ecosystems. We point out the importance of services that develop as commercially viable and constantly updatable data bundles out of diverse and dynamic data types. Such services are essential to the making of the complementarities that are claimed to underlie ecosystem formation.

ORGANISATIONAL CHANGE AND BUSINESS MODEL INNOVATION: AN EXPLORATORY STUDY OF AN ENERGY UTILITY

We study the intricate relationship between business model innovation and the relevant organisational changes that can facilitate the renewal of a traditional business model. To do so, we build on the inductive, longitudinal single case study of an energy utility, describing the mechanisms through which the business model has been innovated over time, and the organisational changes that enabled and fostered such innovation. The innovation itself was a result of the need to face the current digital transformation that is compelling energy utilities to renew their traditional business models and offer customers a new value proposition. This study therefore contributes to the ongoing academic debate on business model innovation and its practical application, adding to the broad discussion on organisational ambidexterity and the analysis of the most relevant organisational changes adopted to implement effective business model innovation.

Digital innovation in context

Purpose

The purpose of this paper is to investigate how digital innovation processes emerge and evolve in organizational settings, and how serendipitous and unbounded digital innovations affect organizations’ overall digital directions.

Design/methodology/approach

The authors draw on an interpretive case study of the Church of Sweden, tracing in detail the design, deployment and governance of an interactive website for digital prayer, the Prayer Web (PW).

Findings

The findings show how the site came about in a serendipitous manner, created by an advertising agency as part of a marketing campaign. In turn, the unbounded nature of digital innovation was revealed as the wide and rapid adoption of the PW raised issues concerning the church’s overall digital direction linked to centralized control, as well as the nature and role of pastors, prayer and communities, as the site allowed people to post prayers and spread their messages (initially with no moderation).

Originality/value

The authors explore the serendipitous and unbounded ways in which digital innovation emerged and evolved in a traditional organization with a long legacy as an important societal institution. The paper contributes by generating rich insights on the role of the distinct aspects of digital technology in serendipitous and unbounded digital innovation. It particularly highlights how the editability and reprogrammability of digital artifacts triggered unexpected new behaviors and governance requirements in the organization under study. The authors encourage further research into the interrelationship between multiple unbounded and serendipitous digital innovations in an organization over time.

The role of discourse in transforming digital infrastructures

Radical shifts in large information technology programmes or digital infrastructures are unusual, but they do occur, usually as a consequence of problems or misalignment. What we know less about is the role of discourse in these shifts. Our interest in this article is to investigate the role of discourse when digitalisation programmes encounter problems. Building on Foucault’s theory of discourse, our research question is: what is the role of discourse in the transformation of digital infrastructures? Our research approach is a critical realist case study, discussing three cases from eHealth innovation. We use Foucault’s archaeological methodology to identify the emerging discursive formations when a programme encounters difficulties. This enables us to analyse the causal relationship between discursive formations and other mechanisms in the infrastructure. We offer two contributions: first, we outline a framework to understand the role of discursive formations in digital transformation; second, we propose a set of configurations to explain how contextual factors and causal mechanisms contingently lead to the transformation of a digital infrastructure.

Digital Innovation and Institutional Entrepreneurship: Chief Digital Officer Perspectives of their Emerging Role

In this study, we explore the role of Chief Digital Officer (CDO) through the perspectives of CDOs in thirty-five organizations. In enacting their emerging role, CDOs must navigate the existing institutionalized context of established information technology (IT) roles and respective jurisdictional claims. We find that CDOs intentionally draw on the term “digital” to distance themselves from existing executive roles in order to gain legitimacy. CDOs as institutional entrepreneurs take a focal role in both: (1) articulating and developing the emerging “digital” logic of action and (2) enacting this digital logic through strategies such as grafting, bridging, and decoupling to navigate tensions between the existing and emerging approaches to innovation with digital technologies.

The Digital Platform: A Research Agenda

As digital platforms are transforming almost every industry today, they are slowly finding their way into the mainstream information systems (ISs) literature. Digital platforms are a challenging research object because of their distributed nature and intertwinement with institutions, markets and technologies. New research challenges arise as a result of the exponentially growing scale of platform innovation, the increasing complexity of platform architectures and the spread of digital platforms to many different industries. This paper develops a research agenda for digital platforms research in IS. We recommend researchers seek to (1) advance conceptual clarity by providing clear definitions that specify the unit of analysis, degree of digitality and the sociotechnical nature of digital platforms; (2) define the proper scoping of digital platform concepts by studying platforms on different architectural levels and in different industry settings; and (3) advance methodological rigour by employing embedded case studies, longitudinal studies, design research, data-driven modelling and visualisation techniques. Considering current developments in the business domain, we suggest six questions for further research: (1) Are platforms here to stay? (2) How should platforms be designed? (3) How do digital platforms transform industries? (4) How can data-driven approaches inform digital platforms research? (5) How should researchers develop theory for digital platforms? and (6) How do digital platforms affect everyday life?

Digitalization in retailing: multi-sided platforms as drivers of industry transformation

Purpose

Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and suppliers meet the ever changing and demanding needs of retail shoppers. One example of this business model innovation is multi-sided digital platforms, which have become popular as they connect consumers with suppliers from around the world with a large ecosystem to support the retail platform. The purpose of this paper is to provide an overview of how multi-sided digital platforms are transforming the retail exchange logic and assess the implications and impact of these platform-based businesses on the retail sector, especially for business managers and consumers.

Design/methodology/approach

In this paper, the authors employ literature review, conceptual analysis and qualitative case study methodology. The authors provide an overview of how the platform economy is affecting the retail sector through the illustration of four digital multi-sided platforms: Alibaba Group, Amazon.com, eBay and Rakuten Group, and what differentiates them from incumbent business models in retailing.

Findings

The findings suggest that platforms transform the transaction logic of retailing as they simply intermediate transactions between buyers and suppliers rather than handling the entire supply and logistics chain themselves. The authors highlight the role of consumer understanding and Big Data as one example of how multi-sided digital platforms differentiate from their non-platform competitors.

Practical implications

The paper highlights how incumbent retailers can compete against new forms of business, such as digital platforms, and the authors demonstrate some of the managerial capabilities needed to remain relevant amidst this new digital competition.

Originality/value

Very little empirical studies in marketing and retail literature have focused on multi-sided digital platforms and their business models. The present study fills this gap with an overview of how multi-sided digital platforms transform the retail sector.

A Paradigmatic Analysis of Digital Application Marketplaces

This paper offers a paradigmatic analysis of digital application marketplaces for advancing information systems research on digital platforms and ecosystems. We refer to the notion of digital application marketplace, colloquially called ‘appstores,’ as a platform component that offers a venue for exchanging applications between developers and end users belonging to a single or multiple ecosystems. Such marketplaces exhibit diversity in features and assumptions, and we propose that examining this diversity, and its ideal types, will help us to further understand the relationship between application marketplaces, platforms, and platform ecosystems. To this end, we generate a typology that distinguishes four kinds of digital application marketplaces: closed, censored, focused, and open marketplaces. The paper also offers implications for actors wishing to make informed decisions about their relationship to a particular digital application marketplace.

Routines, Artefacts and Technological Change: Investigating the Transformation of Criminal Justice in England and Wales

Organisational routines embed and are increasingly embedded within IT artefacts. In this paper, I challenge the conventional notion that warrants the primacy of human activities in the study of routines and bring artefacts in general and IT artefacts in particular to the very centre of my theorising. Through an in-depth case study of crown prosecutors’ work, I endeavour to explain the way legislative and IT artefacts are implicated in the transformation of police-prosecutor routines. I show that legislative artefacts play a constitutive role that generates a new role position and a new system of social practices while IT artefacts serve a regulative function that enforces a newly programmed sequence of steps onto pre-existing practices. I argue for the benefits of foregrounding legislative and IT artefacts to develop a nuanced account of organisational routines that responds to recent calls for research that contextualises the IT artefact outside single settings. I draw on the Transformational Model of Social Activity to unpack the causal linkages between legislative and IT artefacts. Theoretical and practical implications are discussed.