IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v72y2023ics0160791x22002901.html
   My bibliography  Save this article

Digital transformation of incumbent firms from the perspective of portfolios of innovation

Author

Listed:
  • Zhang, Zhengyi
  • Jin, Jun
  • Li, Shijing
  • Zhang, Yuanmin

Abstract

Digital technology has created new elements of innovation types and given incumbent firms new portfolios of innovation. The portfolio of innovation used during a digital transformation allows it to be successfully implemented and gives a competitive advantage to incumbent firms. We present two propositions for the portfolio of innovation and its shift during the process of digital transformation. Based on an emergent innovation matrix, we conducted a multi-case study on three Chinese firms from different industries, in order to identify the novel innovation types that appear when these firms undergo digital transformation. The research suggests that incumbent firms innovate in various ways simultaneously to implement a digital transformation when faced with market and technology change, and the portfolio of innovation shifts during the digital transformation process.

Suggested Citation

  • Zhang, Zhengyi & Jin, Jun & Li, Shijing & Zhang, Yuanmin, 2023. "Digital transformation of incumbent firms from the perspective of portfolios of innovation," Technology in Society, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:teinso:v:72:y:2023:i:c:s0160791x22002901
    DOI: 10.1016/j.techsoc.2022.102149
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X22002901
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2022.102149?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Niosi, Jorge & Reid, Susan E., 2007. "Biotechnology and Nanotechnology: Science-based Enabling Technologies as Windows of Opportunity for LDCs?," World Development, Elsevier, vol. 35(3), pages 426-438, March.
    2. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    3. Giovanni Gavetti & Daniel A. Levinthal & Jan W. Rivkin, 2005. "Strategy making in novel and complex worlds: the power of analogy," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 691-712, August.
    4. Kim, Linsu, 1980. "Stages of development of industrial technology in a developing country: A model," Research Policy, Elsevier, vol. 9(3), pages 254-277, July.
    5. Heredia Pérez, Jorge A. & Geldes, Cristian & Kunc, Martin H. & Flores, Alejandro, 2019. "New approach to the innovation process in emerging economies: The manufacturing sector case in Chile and Peru," Technovation, Elsevier, vol. 79(C), pages 35-55.
    6. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    8. Azar, Goudarz & Ciabuschi, Francesco, 2017. "Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness," International Business Review, Elsevier, vol. 26(2), pages 324-336.
    9. Ulrich Lichtenthaler, 2020. "Building Blocks of Successful Digital Transformation: Complementing Technology and Market Issues," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-14, February.
    10. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    11. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    12. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    13. Tianxu Chen & Lihong Qian & Vadake Narayanan, 2017. "Battle on the Wrong Field? Entrant Type, Dominant Designs, and Technology Exit," Strategic Management Journal, Wiley Blackwell, vol. 38(13), pages 2579-2598, December.
    14. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    15. Elia, Gianluca & Margherita, Alessandro & Passiante, Giuseppina, 2020. "Digital entrepreneurship ecosystem: How digital technologies and collective intelligence are reshaping the entrepreneurial process," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    16. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    17. Nelson, Richard R & Winter, Sidney G, 1975. "Growth Theory from an Evolutionary Perspective: The Differential Productivity Puzzle," American Economic Review, American Economic Association, vol. 65(2), pages 338-344, May.
    18. Wang, Lili & Jiang, Shan & Zhang, Shiyun, 2020. "Mapping technological trajectories and exploring knowledge sources: A case study of 3D printing technologies," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    19. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    20. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    21. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    22. Galindo-Martín, Miguel-Ángel & Castaño-Martínez, María-Soledad & Méndez-Picazo, María-Teresa, 2019. "Digital transformation, digital dividends and entrepreneurship: A quantitative analysis," Journal of Business Research, Elsevier, vol. 101(C), pages 522-527.
    23. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75002, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    24. Magistretti, Stefano & Dell’Era, Claudio & Messeni Petruzzelli, Antonio, 2019. "How intelligent is Watson? Enabling digital transformation through artificial intelligence," Business Horizons, Elsevier, vol. 62(6), pages 819-829.
    25. Christian Matt & Thomas Hess & Alexander Benlian, 2015. "Digital Transformation Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 339-343, October.
    26. Kim, Linsu, 1999. "Building Technological Capability for Industrialization: Analytical Frameworks and Korea's Experience," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(1), pages 111-136, March.
    27. Vincent L. Barker Iii & Irene M. Duhaime, 1997. "Strategic Change In The Turnaround Process: Theory And Empirical Evidence," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 13-38, January.
    28. Franco Malerba & Richard Nelson, 2011. "Learning and catching up in different sectoral systems: evidence from six industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1645-1675, December.
    29. Zhang, Xiaoxing & Gao, Changyuan & Zhang, Shuchen, 2022. "The niche evolution of cross-boundary innovation for Chinese SMEs in the context of digital transformation——Case study based on dynamic capability," Technology in Society, Elsevier, vol. 68(C).
    30. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75202, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    31. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    32. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anqi Wang & Lianmei Zhu & Huanan Sun & Shali Wang & Haijing Ma, 2023. "Fiscal Decentralization, Enterprise Digital Transformation and Enterprise Green Innovation—The Case of 11 Years A-Share Listed Companies in China," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    2. Hong Chen & Haowen Zhu & Tianchen Sun & Xiangyu Chen & Tao Wang & Wenhong Li, 2023. "Does Environmental Regulation Promote Corporate Green Innovation? Empirical Evidence from Chinese Carbon Capture Companies," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    3. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    4. Yang Liu & Jing Cheng & Jingjing Dai, 2024. "Harnessing digital transformation for green innovation in energy transition: a study on R&D investments and spatial spillover in China," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-30, February.
    5. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    6. Liang Tang & Haifeng Jiang & Shanshan Hou & Jun Zheng & Lianqi Miao, 2023. "The Effect of Enterprise Digital Transformation on Green Technology Innovation: A Quantitative Study on Chinese Listed Companies," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    7. Mihaela Brindusa Tudose & Amalia Georgescu & Silvia Avasilcăi, 2023. "Global Analysis Regarding the Impact of Digital Transformation on Macroeconomic Outcomes," Sustainability, MDPI, vol. 15(5), pages 1-21, March.
    8. Wu, Kai & Lu, Yufei, 2023. "Corporate digital transformation and financialization: Evidence from Chinese listed firms," Finance Research Letters, Elsevier, vol. 57(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siachou, Evangelia & Vrontis, Demetris & Trichina, Eleni, 2021. "Can traditional organizations be digitally transformed by themselves? The moderating role of absorptive capacity and strategic interdependence," Journal of Business Research, Elsevier, vol. 124(C), pages 408-421.
    2. Ritala, Paavo & Baiyere, Abayomi & Hughes, Mathew & Kraus, Sascha, 2021. "Digital strategy implementation: The role of individual entrepreneurial orientation and relational capital," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    3. Robert Keller & Philipp Ollig & Patrick Rövekamp, 2022. "Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(1), pages 33-46, February.
    4. Zahra, Shaker A. & Liu, Wan & Si, Steven, 2023. "How digital technology promotes entrepreneurship in ecosystems," Technovation, Elsevier, vol. 119(C).
    5. Saarikko, Ted & Westergren, Ulrika H. & Blomquist, Tomas, 2020. "Digital transformation: Five recommendations for the digitally conscious firm," Business Horizons, Elsevier, vol. 63(6), pages 825-839.
    6. Blanka, Christine & Krumay, Barbara & Rueckel, David, 2022. "The interplay of digital transformation and employee competency: A design science approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    7. Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    8. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    9. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    10. Florian Wiesböck & Thomas Hess, 2020. "Digital innovations," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 75-86, March.
    11. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    12. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    13. Li, Min & Liu, Na & Kou, Aiju & Chen, Wenchuan, 2023. "Customer concentration and digital transformation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    14. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    15. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    16. Xie, Yu & Chen, Zhen & Boadu, Francis & Tang, HongJuan, 2022. "How does digital transformation affect agricultural enterprises’ pro-land behavior: The role of environmental protection cognition and cross-border search," Technology in Society, Elsevier, vol. 70(C).
    17. Hadjielias, Elias & (Lola) Dada, Olufunmilola & Discua Cruz, Allan & Zekas, Stavros & Christofi, Michael & Sakka, Georgia, 2021. "How do digital innovation teams function? Understanding the team cognition-process nexus within the context of digital transformation," Journal of Business Research, Elsevier, vol. 122(C), pages 373-386.
    18. Alexander Bohnert & Albrecht Fritzsche & Shirley Gregor, 2019. "Digital agendas in the insurance industry: the importance of comprehensive approaches†," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 1-19, January.
    19. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Alam, Gazi Mahabubul & Mazzoleni, Alberto, 2023. "Entrepreneurs as strategic transformation managers: Exploring micro-foundations of digital transformation in small and medium internationalisers," Journal of Business Research, Elsevier, vol. 154(C).
    20. Soluk, Jonas & Kammerlander, Nadine & Darwin, Solomon, 2021. "Digital entrepreneurship in developing countries: The role of institutional voids," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:72:y:2023:i:c:s0160791x22002901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.