Agile strategy in the context of digital transformation

Abstract

This study uses digital transformation as a context to explore strategic agility in organisations. Strategic agility has been widely studied from a capability perspective, but attention to agility from a process or practice perspective has so far been limited. The present research defines strategic agility as a ‘dynamic meta-capability’ that enables organisations to balance organisational tensions in their ongoing organisational strategy process. This enables them to adapt actively or reactively to internal or external environmental circumstances while both pursuing their long-term strategic intent and renewing business models effectively. Overall, a strategy process perspective is adopted, acknowledging practice and capability views, to address the following research question: how do organisations manage strategic agility within the strategy process in the context of digital transformation? The present research is conducted from a constructionist perspective using a qualitative inductive multiple case study approach in seven traditional or pre-digital organisations. Data collection included twenty-two semi-structured interviews supported by secondary data such as annual reports. Data were analysed using reflexive thematic analysis to gain in-depth insights. The study develops a Strategic Agility Framework and makes three main contributions to the field. First, the process view is extended by identifying an operationalisation process dimension used in addition to strategy development and implementation in the organisations studied. The study also identifies a continuous reflection and balancing cycle needed for strategic agility. Second, seven strategic ambidexterity principles are developed, which extend the capability view of strategic agility. Third, the practice view of agility is extended by identifying ongoing prioritisation of strategy projects, to both allocate resources and plan capacities, as a key barrier or enabler for strategic agility. Finally, the study uses these contributions to develop seven recommendations for practitioners to improve agility within their strategy process by using the Strategic Agility Framework.