Developing Dynamic Capabilities for Digital Transformation from a German Manufacturing Industry Perspective

  • Verena Ernst

Student thesis: Doctoral Thesis

Abstract

Digital technologies have transformed value creation, competition, and operations in traditional organisations. For the German manufacturing sector—a global engineering leader and economic cornerstone—adapting to digital transformation is essential. Given the multifaceted and dynamic nature of digital transformation, the dynamic capability framework is well-suited to capture and analyse this complexity. This research, using the dynamic capability lens, addresses the question: How do German manufacturing organisations develop dynamic capabilities for digital transformation? It aims to provide an understanding on how these firms navigate and adapt to the continuous changes driven by digital transformation.
To address research gaps, including limited understanding of the German manufacturing context, the role of cultural and leadership factors in digital transformation, and the need for practical, adaptable frameworks, this research adopts a Computational Literature Review to define digital transformation boundaries and elements. Through 21 in-depth interviews with industry experts, the study identifies ten key microfoundations aligned with the DX Sensing, DX Seizing, and DX Transforming framework. It also uncovers six "enablers" and "barriers" to dynamic capability development, offering actionable insights for strategic decision-making and enhancing competitive ad- vantage.
By bringing together empirical insights with established theoretical frameworks, this study makes several significant contributions: a) it deepens the understanding of the Sensing-Seizing-Transforming paradigm, including its microfoundations within the context of digital transformation in the German manufacturing sector, by validating seven established microfoundations and conceptualizing three new ones—DX Trend Crafting, DX Strategic Architecture Management, and DX Program Management; b) it identifies six organisational factors that influence the success of digital transformation initiatives, offering strategic insights to assist companies in prioritizing and navigating their transformation efforts, including the introduction of DX Growth Mindset as an en- abling element for further exploration; c) it integrates the findings into a adaptable framework that can be used by managers and policymakers to enhance strategic decision-making for ensuring competitive advantage in the digital landscape.
Date of Award27 Nov 2024
Original languageEnglish
Awarding Institution
  • University of Portsmouth
SupervisorMark Xu (Supervisor) & Robert Lobue (Supervisor)

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