Strategic design of culture for digital transformation

Abstract

Industrial organizations need to take a cultural leap in order to integrate social systems with rapidly evolving digital technologies. Subsequently, aspiration for digital transformation enabled by organizational culture is ubiquitous; however, guidance in the literature on how to refresh the culture in pursuit of digital transformation strategy is underdeveloped. We conducted a diagnostic multi-case study on the organization culture in three globally renowned industrial organizations undergoing digital transformation strategy implementation. Through thematic analysis of qualitative data, we identified cultural artefacts, values in action, and assumptions that industrial organizations should refresh to enable digital transformation. It was found that forerunner industrial organizations’ approach to culture is strategically proactive and thoughtful. Furthermore, their leaders employed culture as a social control system for digital technology adoption. The research findings are summarized as an exploratory framework for the strategic design of culture for the purpose, governance, ecosystem, and organization of sociotechnical systems.