Contributing mechanisms of organisational structural change in the context of digital transformation. An exploratory case research

Abstract

Organisations are subject to constant change in the context of the megatrend of digital transformation (DT), which has numerous effects on the corporate environment. This influence results in organisational structural change (OSC), which can be observed as a phenomenon across all industries. Given the dynamics of DT, as well as the increasingly digital world, which has an impact on all organisational functions, management along the organisational structure is an elementary factor for companies to ensure competitiveness and cover new types of value creation. Therefore, identifying contributing mechanisms is relevant to characterise OSC and thereby gain a comprehensive understanding of this phenomenon. Currently, academic literature reveals gaps in understanding OSC in the context of DT and the contributing mechanisms. At present, it remains unclear how the considered phenomenon can be characterised, whereby there is a lack of knowledge concerning what these changes look like. Furthermore, it is unclear which mechanisms contribute to OSC, which makes it difficult to explain this phenomenon in detail. Academic literature lacks an understanding of practical experiences regarding OSC, which has led to a gap between theory and practice because mainly theoretical models exist without addressing practical challenges. Emerging from these gaps, the aim of this research project is to identify different characteristics as well as the mechanisms that contribute to OSC in the context of DT, as well as which practical experiences can be transferred into concrete conclusions for organisations. To address the identified research gaps, a qualitative study design in the form of a single-case research is used. Semi-structured interviews among one company were conducted to generate an in-depth understanding of OSC. At the centre of the research are questions about the “what” and “how” mechanisms contributing to OSC, which is examined with a mechanism-based research approach, corresponding to the philosophical position of a critical realist. According, the focus of this research is placed on explaining rather than predicting the investigated phenomenon. Within this research, a total of nine research objectives were answered, addressing the four main areas of (1) characteristics of OSC in the context of DT, (2) contributing mechanisms to this phenomenon, (3) categorisation of organisational change and (4) key aspects of successful OSC in the context of DT, including learnings and practical experiences with this. The differentiated literature review as well as the research approach undertaken provide answers to the research objectives. A total of four characteristics of OSC in the context of DT were derived. Twenty mechanisms that contribute to the considered phenomenon were clustered into four categories. Highlighting several aspects regarding learnings and practical experiences with these findings complements this research. With the characterisation of the considered phenomenon against the background of organisational change, this research is the first scientific contribution based on a real-world case with practical examples. Successful OSC in the context of DT is explained based on various characteristics, triggers and learnings. By addressing these objectives, this research follows up on previous studies that have investigated DT against the background of its impact on organisational structures and contributes to a better understanding of the considered phenomenon by expanding the knowledge. Furthermore, the findings provide practical insights for organisations, helping them to adapt organisational structures and successfully master DT. This research enables to drawing conclusions for other contexts, so that managers can transfer the derived learnings and practical experiences to change processes in other companies.