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Strategic renewal meets organizational changes: what shapes incumbent’s return to digital technologies investments?

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  • Jacques Bughin
  • Nicolas van Zeebroeck

Abstract

A unique feature of digital technologies is their broad impact at both business and market dynamics levels. While the first impact is often studied by scholars under the lenses of digital transformation (DT), the second is often separately addressed by the analysis of strategic renewal to adapt to the new environment. Here, we assess the interaction between organizational changes and extent of strategic change (“boldness” of change) associated with DT, through a series of cross-sectional samples of firms engaging in DT worldwide. We find that organizational capabilities mediate extent of strategic change, which in turn strongly determines the return on investing in digital technologies for incumbent firms.

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  • Jacques Bughin & Nicolas van Zeebroeck, 2025. "Strategic renewal meets organizational changes: what shapes incumbent’s return to digital technologies investments?," ULB Institutional Repository 2013/389349, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/389349
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