Digital transformation in large established organisations: Four restructuring dilemmas based on dynamic capabilities

Abstract

This study explores the intricate strategic implications of digital transformation for large established organisations operating within dynamic environments. While digital transformation has garnered substantial attention in the context of startups, large established organisations face unique challenges in balancing existing capabilities with adopting new digital capacities. This research sheds light on how large established organisations navigate the interplay between change and stability during digital transformation by employing a dynamic capabilities framework. Through a systematic literature review of 123 articles from leading journals, the research categorises large established organisations dynamic capabilities into four domains: performance, leadership, governance and structure. The findings reveal that for each domain, large established organisations encounter a range of dilemmas during digital transformation. The study highlights the need for large established organisations to address these dilemmas and operationalise digital transformation effectively. By offering a comprehensive perspective on these challenges, the study provides valuable guidance for researchers and managers seeking to navigate the complexities of digital transformation in established organisations. The paper concludes by outlining potential directions for future research in this evolving field.