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Systems
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Strategic Management in Digital Transformation Era
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Strategic Management in Digital Transformation Era

A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Systems Practice in Social Science".

Deadline for manuscript submissions: 31 October 2024 | Viewed by 6143

Special Issue Editors

Dr. Saqib Shamim

E-Mail Website
Guest Editor
School of Business and Management, Queen Mary University of London, London E1 4NS, UK
Interests: innovation management; digital transformations; dynamic capabilities; social innovation; strategy
Dr. Usama Awan

E-Mail Website
Guest Editor
Research on Digitalization and Sustainability, Inland Norway University, Hamar, Norway
Interests: digital transformation; sustainability; circular economy
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Industries and societies are now facing the fourth industrial revolution, often called industry 4.0, and firms’ ability to create value from digital technologies is commonly cited as a source of competitive advantage (Chalmers et al., 2021; Krakowski et al., 2023). However, despite investments in digital technologies such as artificial intelligence, big data analytics, 3D printing, robotics, etc., many companies complain that these technologies are not adding to their profits. This indicates that acquisition of digital technologies does not guarantee successful digital transformation; it also requires the ability to manage the process of digital transformation. This argument is consistent with prominent theories of strategic management such as resource-based views, dynamic capabilities views, and resource orchestration theory. For successful digital transformation and to create value from digital technologies, firms need digital strategizing. Digital strategizing refers to a domain focused on the interplay between digital technologies and people at different levels of organizations in processes that form, transmit, implement, host, and support strategy. Scholarly attention is required to explore strategic management approaches for the success of digital transformation to achieve competitive advantage. Challenges such as resource management, stakeholder engagement, employee trust, change management, and routine disruption need specialized research. The purpose of this Special Issue is to extend the debate on the role of strategic management in the digital transformation era.

This Special Issue particularly looks forward to empirical and literature review articles on the following, among others:

  • How do digital transformations impact upon the antecedents of new venture formation and the role and skills of entrepreneurs in driving such start-up opportunities?
  • While the firms from all around world are racing to recruit digital talents, what are the necessary skills required to perform relevant roles? How can firms/start-ups build a team with the requisite skills to successfully pursue an opportunity?
  • How can start-ups leverage relevant technologies associated with industry 4.0 to capture value and rapidly expand their businesses in the market? What are the capabilities required to enable such scaling processes?
  • How can entrepreneurs or established multinational enterprises (MNEs) leverage digital technologies associated with industry 4.0 to accelerate international growth and enhance international performance?
  • As industry 4.0 represents profound changes in society, how do governments, incumbent firms, start-ups, and other relevant parties collaborate to tackle these challenges?
  • How do industry 4.0 technologies influence social, environmental, and economic upgrading?

Dr. Saqib Shamim
Dr. Usama Awan
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Systems is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Published Papers (6 papers)

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Research

37 pages, 9009 KiB  
Article
The Impact of a Skill-Driven Model on Scrum Teams in Software Projects: A Catalyst for Digital Transformation
by Vayodya Haputhanthrige, Ikram Asghar, Sidra Saleem and Saqib Shamim
Systems 2024, 12(5), 149; https://doi.org/10.3390/systems12050149 - 26 Apr 2024
Viewed by 311
Abstract
Human skills are a critical factor in the success or failure of a digital project. Limited studies have been conducted to identify the industry demand for skills of scrum roles (product owner, scrum master, web developer) and levels (entry, associate, mid-senior). The evaluation [...] Read more.
Human skills are a critical factor in the success or failure of a digital project. Limited studies have been conducted to identify the industry demand for skills of scrum roles (product owner, scrum master, web developer) and levels (entry, associate, mid-senior). The evaluation of skills over time benefits both decision-makers and associated team members, which leads to successful project completions. The aim of this research is to improve decision making concerning the level-specific skills of selected scrum roles for digital projects. The study identifies major and minor skills, patterns, and relationships between levels, and formulates the mathematical equations as the most important inputs to the skill-driven model’s implementation and evaluation. Both qualitative and quantitative research methods were used to analyse 900 surveyed job advertisements published on LinkedIn in Europe. Descriptive analysis was used to analyse quantitative data while the deductive approach was followed with thematic analysis. There are required skill sets for each level of roles, level-specific skills, industry-demanded skills, and formulas related to the initial and individual skill ratings that are investigated. A new mechanism for evaluation is introduced based on “the time spent with skills”. As a result, the proposed model is implemented by feeding research findings into the Mendix programming platform. The skill-driven model is a decision-support solution in software project management to evaluate skills which assist in assigning the right person to the right digital project. Further investigation on different job portals can help to improve the accuracy of industry standards and reduce the lack of progression skills by overcoming limitations identified in this paper. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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26 pages, 2012 KiB  
Article
Transitioning to Agile Organizational Structures: A Contingency Theory Approach in the Financial Sector
by Darley Biviana Pacheco-Cubillos, Josefa Boria-Reverter and Jaime Gil-Lafuente
Systems 2024, 12(4), 142; https://doi.org/10.3390/systems12040142 - 22 Apr 2024
Viewed by 381
Abstract
The primary objective of this investigation is to explore the key factors within a large corporation that facilitate the transition from a conventional hierarchical organizational structure to a more agile one. Although there are studies in the literature on the different agile organizational [...] Read more.
The primary objective of this investigation is to explore the key factors within a large corporation that facilitate the transition from a conventional hierarchical organizational structure to a more agile one. Although there are studies in the literature on the different agile organizational structures, there are no clear guidelines for a large company to transform to an agile framework. This study employs contingency theory as its framework and specifically focuses on the financial sector to identify both opportunities and challenges encountered during this transformation process. Qualitative research methods were employed, involving an analysis of five case studies in which managers served as respondents. This research contributes to the identification of a model as a guideline for the transformation of the organizational structure towards agility that can provide valuable information for companies undergoing such a transformation. The managers surveyed provided their experience and the competencies of their profiles were validated, in addition to the application of the Delphi method to obtain more objective information. The findings underscore that large companies should refrain from adopting a completely flat hierarchical structure. Moreover, there exists a set of strategic-level elements that serve as a guiding framework for the transformation process. Furthermore, it is essential to acknowledge that the transformation process itself does not follow a one-size-fits-all approach; rather, it is contingent upon the unique context of each individual case, and it is also a cultural challenge. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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19 pages, 1294 KiB  
Article
The Non-Linear Impact of Digitalization on the Performance of SMEs: A Hypothesis Test Based on the Digitalization Paradox
by Xinqiang Chen, Xiu-e Zhang, Zhiwen Cai and Jiangjie Chen
Systems 2024, 12(4), 139; https://doi.org/10.3390/systems12040139 - 20 Apr 2024
Viewed by 392
Abstract
While digitalization offers new opportunities for small- and medium-sized enterprises (SMEs), it also introduces the phenomenon of the “digitalization paradox”. This paper develops a theoretical model comprising digitalization, digital technology–business alignment, external social capital, and SMEs’ performance, rooted in strategic alignment theory (SAT) [...] Read more.
While digitalization offers new opportunities for small- and medium-sized enterprises (SMEs), it also introduces the phenomenon of the “digitalization paradox”. This paper develops a theoretical model comprising digitalization, digital technology–business alignment, external social capital, and SMEs’ performance, rooted in strategic alignment theory (SAT) and social capital theory (SCT). The necessary data for the study were obtained by distributing questionnaires to 352 small and medium-sized enterprises engaged in digital practices in China, and hierarchical regression analysis was employed to investigate the impact of digitalization on the performance of SMEs and its boundaries of influence. The results indicate an inverted U-shaped relationship between digitalization and SME performance, with both digital technology–business alignment and external social capital serving as positive moderators. Specifically, digital technology–business alignment and external social capital both enhance the positive impact of digitalization on the performance of SMEs and mitigate its negative effects. The findings enhance comprehension of the “digitalization paradox” and offer new insights and solutions for SMEs to navigate the opportunities and challenges of digitalization. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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26 pages, 4324 KiB  
Article
System Approach to the Process of Institutional Transformation for Industrial Integrations in the Digital Era
by Tatyana Tolstykh, Nadezhda Shmeleva, Alexey Boev, Tatiana Guseva and Svetlana Panova
Systems 2024, 12(4), 120; https://doi.org/10.3390/systems12040120 - 06 Apr 2024
Viewed by 683
Abstract
The digitalization of the high-tech economy is complicated due to several issues. One can mention non-synchrony and imbalance in the development of industrial enterprises and their integrations; changes in the elements and relations between enterprises and the external environment; as well as contradictions [...] Read more.
The digitalization of the high-tech economy is complicated due to several issues. One can mention non-synchrony and imbalance in the development of industrial enterprises and their integrations; changes in the elements and relations between enterprises and the external environment; as well as contradictions between the actors. Therefore, a new institutional system for industrial integrations needs to be formed. This article proposes a concept and scenario of the institutional change needed to bolster industrial integrations in the digital economy. The structural logic and algorithm of the process provides for the gradual progress through seven phases of institutional transformation. The authors have developed an institutional change management platform for strategic transformation, the core of which is a decision-making system. The platform supports the management of digital and material business processes of industrial integrations. The conceptual approach is based on a comparison of the life cycles of enterprises and their markets. The article proposes a methodology for assessing the readiness of industrial integrations to implement institutional change strategies using modified Shewhart control charts. The methodology is based on a two-criterion approach to the analysis of finances, production reserves, human resources, organizational structures, management technologies, corporate institutions, and a personnel motivation system. This approach allows determining the level of compliance of the resources available with the requirements of the transformation strategy implementation plan. The methodology has been tested at 14 enterprises functioning as industrial integration actors. According to the dynamics of the level of readiness to implement the transformation strategy, enterprises within the framework of industrial integrations are divided into three groups: enterprises with consistently high, medium, and low levels of readiness to implement the strategy. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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28 pages, 715 KiB  
Article
Unleashing Green Innovation in Enterprises: The Transformative Power of Digital Technology Application, Green Human Resource, and Digital Innovation Networks
by Jian Liu, Qibin Wang and Chaoyi Wei
Systems 2024, 12(1), 11; https://doi.org/10.3390/systems12010011 - 30 Dec 2023
Viewed by 2101
Abstract
The rapid development of digital technology has injected new vitality into green technological innovation within manufacturing enterprises. Proper application of digital technology during the innovation process can propel global sustainable development. Using Chinese publicly traded manufacturing firms as a sample, this study employed [...] Read more.
The rapid development of digital technology has injected new vitality into green technological innovation within manufacturing enterprises. Proper application of digital technology during the innovation process can propel global sustainable development. Using Chinese publicly traded manufacturing firms as a sample, this study employed a constructed digital technology innovation network and OLS models to unveil the mechanisms through which digital technology application affects green technological innovation. This research reveals a significant positive impact of the breadth and depth of digital technology applications on companies’ green technological innovation performance. Green human resource allocation serves as an intermediary in this relationship. Furthermore, the embeddedness and structural embeddedness of the digital technology innovation network play a significantly positive moderating role in the relationship between digital technology applications and green human resource allocation. This discovery provides a theoretical foundation for how companies can harness digital technology to promote green innovation within China’s digital strategy. It aids manufacturing enterprises in optimizing digital technology applications, improving green human resource allocation, and facilitating the development of digital technology innovation networks, advancing more sustainable development and contributing to global environmental goals. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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18 pages, 2754 KiB  
Article
Research on the Measurement and Characteristics of Virtual Agglomeration Based on Social Network Analysis: Evidence from 29 Manufacturing Industries in China
by Qing Zhang, Shaofeng Ru and Yiyang Cheng
Systems 2023, 11(12), 571; https://doi.org/10.3390/systems11120571 - 08 Dec 2023
Viewed by 1423
Abstract
(1) Background: Virtual agglomeration reshapes the organizational form and drives the sustainable development of the manufacturing industry. How to measure the virtual agglomeration level of the manufacturing industry is an important and difficult problem for current research. (2) Methods: In this study, we [...] Read more.
(1) Background: Virtual agglomeration reshapes the organizational form and drives the sustainable development of the manufacturing industry. How to measure the virtual agglomeration level of the manufacturing industry is an important and difficult problem for current research. (2) Methods: In this study, we constructed a social network for the virtual agglomeration of the manufacturing industry, with each industry representing a node in the network. We also measured the virtual agglomeration level of the overall manufacturing industry using the network edge number and network density indicators in the social network analysis method. Each sub-industry virtual agglomeration level was measured using the point centrality index. Furthermore, the virtual agglomeration characteristics of the manufacturing industry were examined through cluster analysis and core–periphery analysis. The data sources include the supply chain statistics and virtual agglomeration text data of manufacturing enterprises. The virtual agglomeration text data were obtained with the help of Python crawler technology. Two types of data were matched, and the virtual agglomeration data of 29 manufacturing industries in China from 2012 to 2022 was obtained. (3) Results: The virtual agglomeration level of the overall manufacturing industry is constantly improving, but there are large differences among different industries. Moreover, the virtual agglomeration of the manufacturing industry has the characteristics of both specialization and diversification. The virtual agglomeration social network of the manufacturing industry is experiencing an evolution process from a “core–periphery” structure to a “core–semi-periphery–periphery” structure. (4) Conclusions: This study provides a theoretical basis and practical reference for improving the virtual agglomeration level of the manufacturing industry. Full article
(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)
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