Building dynamic capabilities in large global advertising agency networks: managing the shift from mass communication to digital interactivity

Abstract

Interactive digital technologies result in significant managerial challenges for the largest global advertising agency networks. This paper, based on original data from in-depth case research in three of the largest global advertising networks, investigates how advertising agency networks manage the change from mass communication to digital interactivity by applying theory of dynamic capabilities to assess challenges and solutions. Relatedly, the paper analyses the change agent role ascribed to the Chief Digital Officers mandated to solve the digital interactivity challenges. The findings uncover the cognitive, structural, operational and process changes needed to develop digital interactivity, thereby highlighting important managerial implications.