Document Type

Dissertation

Degree

Doctor of Business Administration

Major

Business Administration

Date of Defense

9-19-2022

Graduate Advisor

Dr. Dinesh A. Mirchandani, Ph.D., Information Systems

Committee

Dr. Dinesh A. Mirchandani, Ph.D.

Dr. Joseph Rottman, D. Sc.

Dr. Doug Smith, Ph.D.

Abstract

A new wave of advanced technologies is disrupting companies of all types and transforming business models within every industry. Long-standing industrial firms that rose to prominence in a pre-digital economy are particularly vulnerable. Prevailing views suggest these companies (hereafter referred to as incumbents) must reimagine their value propositions and transform themselves by leveraging today’s advanced technologies. The opportunities provided by these advanced technologies will significantly affect incumbents whether they participate or not. The pursuit of these opportunities, commonly referred to as digital transformation (DX), is the focus of our research.

Traditional technology-enabled business endeavors creating incremental operational improvements fell within the domain of information technology organizations. DX is more profound and has become a leadership imperative for all top-level managers. The leaders of incumbent companies are facing a “moment-of-truth” with some characterizing the situation as “digital or death”. With this gravity, it is not surprising that academic and business research highlights the critical role of leadership.

To address this challenge, our research leveraged prior academic views on the use of management control systems utilized to guide organizational change and employee behavior. We tested a DX control system model to identify leadership processes that are correlated to DX success. Additionally, our research highlights a new digital leadership capability required for top-level managers, which we refer to as digital acuity. Evidence suggests these leaders need high levels of digital acuity to understand new technologies, develop a digitally enabled vision for their organization, and champion digital innovation. As such, we extend prior research with the addition of digital acuity to the DX control system framework. Finally, we provide evidence that points to a mediated model explaining how digital acuity interacts with the utilization of the process components to drive DX success.

As famed management consultant, Peter Drucker, once said “the greatest danger in times of turbulence is not the turbulence, it is to act with yesterday’s logic”. Our findings provide incremental and original insights into a new digital leadership lens for leaders of incumbent companies in their pursuit of a digitally enabled future.

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