Dynamic Mechanism of Digital Service Transformation of Incumbent Enterprises:A Longitudinal Case Study based on Dominant Logic Transformation
Digital servitization transformation has become an important tool for incumbent enterprises to create and maintain competitive advantages.How to drive incumbent enterprises to realize the dominance and adaptability of transformation has become a key problem in the digital servitization transformation of incumbent enterprises.Based on the perspective of dominant logic transformation,this paper chooses Sany Heavy Industry as the research object,uses longitudinal case study to deconstruct the generation and transformation mechanism of dominant logic behind the transformation,realizes mutual adaptation in response to the embedding effect of situational factors based on strategic focus and causal logic of key events,and then promotes the generation of dominant logic,and realizes the dynamic transformation of dominant logic by balancing the forces of variance suppression and variance emergence in the environment,and then explains the dynamic mechanism of digital servitization transformation of incumbent enterprises.The findings are as follows:First,the dominant logic generation of the digital servitization transformation of incumbent enterprises is the result of the mutual adaptation of the causal logic of phased focus and its key strategic action events,and the interaction with embedded situational factors.Second,the dominant logic of digital servitization transformation of incumbent enterprises is not static,and the key dynamic mechanism of its transformation lies in dynamically balancing the two forces of variance suppression and variance emergence based on embedded situational factors.The transformation of dominant logic is to make up for the variance inhibition caused by dominant logic through the emergence of variance based on opportunity seeking,and then improve the flexibility and adaptability of dominant logic.Moreover,the transformation of digital service in the incumbent enterprise is essentially the result of the joint action of"filter"and"lens"in the generation and transformation of leading logic,and its adaptability depends on the matching of environmental clue perception and the selection and variation process of leading logic.The main contributions of this study are reflected in the following three aspects:First,by incorporating the perspective of dominant logic transformation into the digital service transformation process of incumbent enterprises,we provide a comprehensive presentation of their digital service transformation through three stages:basic services,extended services,and intelligent services.We also conduct an in-depth investigation of the generation and transition of dominant logic at each stage,thereby enriching and advancing research on the micro-foundations and transformation processes of digital servitization.Second,we summarize the sources of impetus for digital servitization from two perspectives:variation suppression and variation emergence,addressing the inadequacy of unclear mechanisms underlying the dynamic transformation of dominant logic.This enhances our understanding of the critical role of dynamic balance between variation emergence and variation suppression in achieving dominant logic transformation,highlighting the driving mechanisms behind digital service transformation.Third,the essence of digital service transformation in incumbent enterprises is the result of the joint effect of"filter"and"lens"roles played by the generation and transition of dominant logic.This enhances our awareness of the dominance and adaptability of dominant logic,improving our understanding of its crucial role in achieving path dependence and path creation throughout transformation.From the perspective of dominant logic transformation,this paper presents the transformation process of three stages of digital servitization transformation of incumbent enterprises,and clarifies the roles of variation emergence and variation suppression in fostering the dynamic mechanism of digital servitization transformation,which provides significant guidelines for incumbent enterprises to realize path dependence and path breakthrough in the process of digital servitization transformation.First,top managers must improve strategic transformation cognition,staying sensitive to industry trends and processes.They should enhance information perception and filtering to build staged competitive advantages during digital servitization transformation,guiding other firms.Second,digital servitization is essential;managers must be flexible,improving environmental scanning and perception beyond current advantages.They should explore new technological and market opportunities,analyzing the dynamic relationship between existing strengths and new chances to increase flexibility and adaptability.Third,managers must recognize variation inhibition and emergence,using past data and forward-looking visions to compensate for strategic lag,raising decision-making cognition and boosting transformation success rates.
incumbent enterprisesdigital servitization transformationdominant logicdynamic mechanismlongitudinal case study
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