Microfoundations of Governance: Practice-based Perspectives on Digital Transformation

In this presentation, we delve into the pivotal role of governance in the context of digital transformation. As digital transformation is not merely a technological shift but a fundamental organizational change impacting business models and offerings, the presented study underscores the necessity of redefining governance. Rather than viewing governance as a purely prescriptive and restrictive function focused on compliance, we reconceptualize it as embodying 'enabling constraints' that both demarcate the boundaries within which digital transformation can take place and also foster greater autonomy and capability development.

Central to our discussion is the concept of dynamic capabilities, which are instrumental in adapting to rapidly evolving business, customer, and technology changes. Drawing on a qualitative meta-analysis of 34 case studies, we illustrate how traditional IT governance mechanisms may prove insufficient for organizations engaged in digital transformation. Instead, we identify new governance structures, processes, and relational mechanisms that function as microfoundations that enable dynamic capabilities—resulting in a comprehensive framework highlighting how governance mechanisms undergird digital transformation success.

This seminar takes place in person in T09-67. Alternatively, please follow this link to join via Zoom.