Designing a Digital Transformation Strategy Activity Model for Manufacturing Organizations
Subject Areas : Management
Reza Sabouri
1
,
Naser Feghhi Farahmand
2
*
,
ُSoleyman Iranzadeh
3
1 - Department of Industrial Management, Ta.C., Islamic Azad University, Tabriz, Iran.
2 - Department of Industrial Management, Ta.C., Islamic Azad University, Tabriz, Iran.
3 - Department of Industrial Management, Ta.C., Islamic Azad University, Tabriz, Iran.
Keywords: Digital transformation strategy, management actions, drivers of digital transformation. ,
Abstract :
Given the transformative effects of digital technologies on almost all aspects of the organization's internal and external environment, developing and implementing a digital transformation strategy has become a key concern for many organizations. Accordingly, the purpose of this study was to design a model of digital transformation strategy activities for manufacturing organizations and the research method was descriptive-causal. The statistical population of this study included two sections: experts and all managers of manufacturing companies in East Azerbaijan Province. In this study, 14 experts participated in the first section and 338 managers of manufacturing companies responded to the questionnaires in the second section of the study. Two questionnaires were used to collect data. Interpretive structural modeling and structural path modeling were used to analyze the data. The findings of the interpretive structural modeling section show that the model of digital transformation strategy activities in manufacturing organizations in East Azerbaijan Province is at six levels. The activities of digital transformation drivers have had the greatest impact and the consequences of transformation have had the greatest impact on the pattern of digital transformation strategy activities in manufacturing organizations. Also, testing the designed pattern has shown the appropriate validity and reliability of the pattern and confirmed the direct and indirect relationships of digital transformation strategy activities in manufacturing organizations and confirmed the designed pattern based on empirical data.
1. Albukhitan, S. (2020). Developing digital transformation strategy for manufacturing. Procedia computer science, 170, 664-671.
2. Barni, A., Carpanzano, E., Landolfi, G., & Pedrazzoli, P. (2019, June). Urban Manufacturing of Sustainable Customer-Oriented Products. In International Conference on the Industry 4.0 model for Advanced Manufacturing (pp. 128-141). Springer, Cham.
3. Basu, S. (2023). Plant Intelligent Automation and Digital Transformation (pp. 243-272). Amsterdam, The Netherlands:: Elsevier.
4. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. MIS quarterly, 471-482.
5. Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. The Journal of Strategic Information Systems, 28(1), 17-33.
6. Chawla, R. N., & Goyal, P. (2021). Emerging trends in digital transformation: a bibliometric analysis. Benchmarking: An International Journal, 29(4), 1069-1112.
7. Chong, J., & Duan, S. (2020). Understanding digital strategy for digital transformation: A review of literature. In Proceedings of the 23rd Pacific Asia Conference on Information Systems (PACIS 2020) (pp. 1-12). Association for Information Systems.
8. Creswell, J. W., & Creswell, J. D. (2005). Mixed methods research: Developments, debates, and dilemma. Berrett-Koehler Publishers.
9. Ferraris, A., Degbey, W. Y., Singh, S. K., Bresciani, S., Castellano, S., Fiano, F., & Couturier, J. (2022). Microfoundations of strategic agility in emerging markets: empirical evidence of Italian MNEs in India. Journal of World Business, 57(2), 101272.
10. Fichman, R. G., Dos Santos, B. L., & Zheng, Z. (2014). Digital innovation as a fundamental and powerful concept in the information systems curriculum. MIS quarterly, 38(2), 329-A15.
11. Gimpel, H., Hosseini, S., Huber, R., Probst, L., Röglinger, M., & Faisst, U. (2018). Structuring digital transformation: a framework of action fields and its application at ZEISS. Journal of Information Technology Theory and Application (JITTA), 19(1), 3.
12. Gobble, M. M. (2018). Digital strategy and digital transformation. Research-Technology Management, 61(5), 66-71.
13. Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation, 102, 102217.
14. Güler, M., & Büyüközkan, G. (2019). Analysis of digital transformation strategies with an integrated fuzzy AHP-axiomatic design methodology. IFAC-PapersOnLine, 52(13), 1186-1191.
15. Gurcan, F., Boztas, G. D., Dalveren, G. G. M., & Derawi, M. (2023). Digital transformation strategies, practices, and trends: a large-scale retrospective study based on machine learning. Sustainability, 15(9), 7496.
16. Hamdani, N. A., Maulani, G. A. F., Nugraha, S., Mubarok, T. M. S., & Herlianti, A. O. (2021). Corporate culture and digital transformation strategy in universities in Indonesia. Studies of Applied Economics, 39(10).
17. Henfridsson, O., & Bygstad, B. (2013). The generative mechanisms of digital infrastructure evolution. MIS quarterly, 907-931.
18. Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2020). Options for formulating a digital transformation strategy. In Strategic information management (pp. 151-173). Routledge.
19. Holotiuk, F., & Beimborn, D. (2017). Critical success factors of digital business strategy. In Proceedings of the International Conference on Wirtschaftsinformatik, St. Gallen, pp. 991-1005.
20. Ismail, M. H., Khater, M., & Zaki, M. (2017). Digital business transformation and strategy: What do we know so far. Cambridge Service Alliance, 10(1), 1-35.
21. Kane, G. (2019). The technology fallacy: people are the real key to digital transformation. Research-Technology Management, 62(6), 44-49.
22. Kane, G. C., Palmer, D., Phillips, A. N., & Kiron, D. (2015). Is your business ready for a digital future?. MIT Sloan management review, 56(4), 37.
23. Lee, C. H., Trappey, A. J., Liu, C. L., Mo, J. P., & Desouza, K. C. (2022). Design and management of digital transformations for value creation. Adv. Eng. Inform, 52, 101547.
24. Lee, C. H., Wang, D., Desouza, K. C., & Evans, R. (2021). Digital Transformation and the New Normal in China: How Can Enterprises Use Digital Technologies to Respond to COVID-19?. Sustainability, 13(18), 10195.
25. Lee, C. H., Wang, D., Lyu, S., Evans, R. D., & Li, L. (2022). A digital transformation-enabled framework and strategies for public health risk response and governance: China's experience. Industrial Management & Data Systems, (ahead-of-print).
26. Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & information systems engineering, 57, 339-343.
27. Maulani, G. A. F., & Hamdani, N. A. (2019). The influence of information technology and organizational climate on the competitiveness of private universities in Indonesia. International Journal of Recent Technology and Engineering, 8(1).
28. Maulani, G. A. F., Hamdani, N. A., Nugraha, S., Solihat, A., & Mubarok, T. M. S. (2021). Information technology resources and innovation performance in higher education. Int. J. Interact. Mob. Technol., 15(4), 117-125.
29. McGrath, R., & McManus, R. (2020). Discovery-Driven. Harvard Business Review, 98(3), 124-133.
30. Nwankpa, J. K., & Roumani, Y. (2016). IT capability and digital transformation: A firm performance perspective.
31. Ritala, P., Baiyere, A., Hughes, M., & Kraus, S. (2021). Digital strategy implementation: The role of individual entrepreneurial orientation and relational capital. Technological Forecasting and Social Change, 171, 120961.
32. Romero, D., Flores, M., Herrera, M., & Resendez, H. (2019, June). Five management pillars for digital transformation integrating the lean thinking philosophy. In 2019 IEEE International conference on Engineering, technology and Innovation (ICE/ITMC) (pp. 1-8). IEEE.
33. Ross, J., Sebastian, I., Beath, C., Mocker, M., Moloney, K., & Fonstad, N. (2016). Designing and executing digital strategies: completed research paper. In Digital innovation at the crossroads: ICIS 2016, International Conference on Information Systems, December 11-14, 2016, Dublin, Ireland: practice-oriented research (pp. 1-17). Association for Information Systems.
34. Savastano, M., Amendola, C., Bellini, F., & D’Ascenzo, F. (2019). Contextual impacts on industrial processes brought by the digital transformation of manufacturing: A systematic review. Sustainability, 11(3), 891.
35. Schallmo, D. R., Williams, C. A., Schallmo, D. R., & Williams, C. A. (2018). History of digital transformation. Digital Transformation Now! Guiding the Successful Digitalization of Your Business Model, 3-8.
36. Scuotto, V., Magni, D., Palladino, R., & Nicotra, M. (2022). Triggering disruptive technology absorptive capacity by CIOs. Explorative research on a micro-foundation lens. Technological Forecasting and Social Change, 174, 121234.
37. Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G., & Fonstad, N. O. (2020). How big old companies navigate digital transformation. In Strategic information management (pp. 133-150). Routledge.
38. Shaughnessy, H. (2018). Creating digital transformation: Strategies and steps. Strategy & Leadership, 46(2), 19-25.
39. Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: A holistic typology of digital transformation strategies. Business Horizons, 62(6), 683-693.
40. Tumbas, S., Berente, N., & Vom Brocke, J. (2017, December). Born Digital: Growth Trajectories of Entrepreneurial Organizations Spanning Institutional Fields. In ICIS.
41. Verina, N., & Titko, J. (2019, May). Digital transformation: conceptual framework. In Proc. of the Int. Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering (pp. 9-10).
42. Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66.