Types of Tensions and Their Transformative Effects in Digital Transformation
Type
conference paper
Date Issued
2024-12
Author(s)
Abstract
Digital transformation in incumbent organizations is characterized by organizational tensions. They result from a clash of established routines, value propositions, and identity with new digitally-enabled ones. Based on an in-depth exploratory case study with the car wash equipment manufacturer CleanCar, we report on two central findings: First, digital transformation is not only characterized by paradoxical tensions as is commonly assumed. Instead, we found that tensions take on various forms and identified four tension types in the context of CleanCar’s digital transformation: dialectic (‘B2B versus B2C identity’), trade-off (‘local adoption versus centralization’), duality (‘material versus immaterial solutions’ and ‘cost-based versus value-based revenue logic’), and paradox (‘strengthening the core versus embracing the unknown’). Second, we associate different tension types with different transformative effects implying tensions’ impact on the digital transformation varies. We discuss propositions to mobilize future research and encourage practitioners to consider and manage different types of tensions during digital transformation.
Event Title
International Conference on Information Systems
Event Location
Bangkok, Thailand
Event Date
Dec 13-18, 2024
Division(s)