Towards an integrated digital transformation framework for Industry 5.0 : enablers, barriers, and the ambidexterity solution

Abstract

Digital transformation (DT) is crucial for organizations to thrive in the digital era, driven by Industry 4.0 and further accelerated by Industry 5.0. However, unsuccessful DT initiatives can be detrimental to organisational performance, highlighting the need for pragmatic DT strategies aligned with operational goals and sustainable value creation. A comprehensive DT strategy must encompass organisational, technological, and human dimensions. Furthermore, organizations must simultaneously exploit their existing business models while exploring new digital opportunities - a capability known as organisational ambidexterity - to ensure sustained growth and competitiveness in an ever-evolving market landscape. Despite its significance, existing studies on DT lack an integrated perspective on the enabling and deterring factors that influence the success of DT initiatives. Additionally, there is a notable absence of a comprehensive framework to support organizations in effectively strategizing and implementing DT while maintaining organisational ambidexterity. This research addresses these significant gaps by systematically investigating the enablers and deterrents of DT and developing a comprehensive, actionable DT framework. The proposed framework equips organizations with a structured approach to achieving their DT objectives while successfully practicing ambidexterity. This study adopted an inductive approach combined with an explanatory sequential design to investigate how organizations navigate the complexities of DT while balancing tradition and innovation. The research began with an extensive literature review to identify and analyse the key constituents and frameworks of DT, emphasizing critical success factors and the application of organisational ambidexterity within the context of DT initiatives. Insights derived from this review were further explored through quantitative surveys and qualitative semi-structured interviews conducted with a carefully selected sample of organizations in Oman. This research makes a significant theoretical contribution to knowledge by offering an integrated perspective on the critical factors influencing DT and enhancing the understanding of organisational ambidexterity within the context of DT. From a practical standpoint, the study presents a comprehensive DT Framework, grounded in theoretical insights and pragmatically designed, offering organizations a structured approach to strategizing and implementing DT initiatives. Furthermore, this research proposes an 'ambidexterity solution' to balance exploitation and exploration in effectively practicing digital transformation.