Assessment of digital maturity: the role of resources and capabilities in digital transformation in B2B firms

Hortoványi et al. (2023),
International Journal of Production Research

Digital transformation is a major organisational challenge for manufacturing firms due to the extremely low success rate of such transformations to date. Capability Maturity theory suggests that firms need to develop digital transformation capability incrementally by focusing on a ‘vital few’ improvement priorities for advancing progress. The practitioner literature lacks empirical studies that validate extant capability maturity models (CMM) for digital transformation despite their importance. Moreover, there is a lack of assessment methods, and those that exist do not specify improvement points explicitly, nor prioritise them. Our research aims to address this gap through a systematic, quantitative analysis of digital capability by understanding the deployment of IT-enabled resources. Based on a sample of 302 manufacturing firms, results indicate that the digital transformation stages are punctuated by various resource-capability combinations. Results highlight that strategy- and organisation-related IT-enabled resources are the key drivers of digital transformation. We also observe that as a firm’s digital capability grows at each maturity stage, successively greater IT-enabled resources are required to support this in a stepwise function. To succeed, firms should be incentivised and supported to think beyond technology and develop five specific digital capabilities simultaneously. We also indicate the limitations that underlie our empirical work.

Extension of the strategic renewal journey framework: The changing role of middle management

Hortoványi et al. (2021)
Technology in Society

This paper presents the findings of a longitudinal study of a large corporation's journey towards becoming an ambidextrous organisation in the face of emerging technology. By investigating the interplay between the top and middle management, the results show that business intelligence systems allowed the firm to pursue a controlled renewal journey that was data-driven, automated, and supported fast organisational learning. This substituted for active frontline and middle managers. The change in organisational direction was driven by a small and powerful strategic top management group, even though this was a multi-unit firm with more than 100,000 employees. The main advantage of this type of journey is that the organisation can fully realize the advantage of highly centralised formal planning and control while becoming resilient and ambidextrous. A well-functioning decision support system, organisational policies and communication strategy can substitute for collective sense-making and shared strategic schemas. The results also suggest that management control systems can have a profound impact on developing organisational ambidexterity. The article also provides further details on the nature and implications of the rhetorical tactics used by the top management team to focus on organisational attention and action.

The impact of ICT on learning on-the-job

Hortoványi, L, Ferincz, A (2014),
The Learning Organization

Purpose – The purpose of this paper is to analyse the relationship between on-the-job learning andinformation and communication technology (ICT).Design/methodology/approach – Action research methodology was applied to study 62 small- andmedium-sized corporations, and to interview over 200 knowledge workers and managers. Thequalitative, textual data collected were transformed into 16 variables and analysed by multidimensionalscaling.Findings – The paper provides insights into the optimal use of ICT in intra-organizational knowledgetransfer and learning. We found that it is essential to use the right combination and number oftechnologies, aligned with the organization’s internal processes. Four different types of organizationswith sub-optimal usage of ICT and possible strategies for them to reach the optimal zone were identified.For successful organizational learning, however, more is needed: the individual must also understandthe value of learning and must be motivated to take part in it.Research limitations/implications – On-the-job-learning can be facilitated with ICT tools but onlyif the organization invests in the right levels of ICT. Too much technology can be as destructive toon-the-job learning as too little. Future research should look at other contexts (size, age, industry, etc.) tovalidate these findings.Practical implications – The paper demonstrates the effective use of ICT in knowledge transfer andon-the-job learning.Originality/value – The paper extends our understanding of human– computer collaboration. Ithighlights that finding the optimal level of ICT is essential for successful knowledge transfer andon-the-job learning