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A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Systems Practice in Social Science".

Deadline for manuscript submissions: closed (31 October 2024) | Viewed by 24568

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Dr. Saqib Shamim

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Guest Editor

School of Business and Management, Queen Mary University of London, London E1 4NS, UK
Interests: innovation management; digital transformations; dynamic capabilities; social innovation; strategy

Dr. Usama Awan

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Guest Editor

Research on Digitalization and Sustainability, Inland Norway University, Hamar, Norway
Interests: digital transformation; sustainability; circular economy
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Special Issue Information

Dear Colleagues,

Industries and societies are now facing the fourth industrial revolution, often called industry 4.0, and firms’ ability to create value from digital technologies is commonly cited as a source of competitive advantage (Chalmers et al., 2021; Krakowski et al., 2023). However, despite investments in digital technologies such as artificial intelligence, big data analytics, 3D printing, robotics, etc., many companies complain that these technologies are not adding to their profits. This indicates that acquisition of digital technologies does not guarantee successful digital transformation; it also requires the ability to manage the process of digital transformation. This argument is consistent with prominent theories of strategic management such as resource-based views, dynamic capabilities views, and resource orchestration theory. For successful digital transformation and to create value from digital technologies, firms need digital strategizing. Digital strategizing refers to a domain focused on the interplay between digital technologies and people at different levels of organizations in processes that form, transmit, implement, host, and support strategy. Scholarly attention is required to explore strategic management approaches for the success of digital transformation to achieve competitive advantage. Challenges such as resource management, stakeholder engagement, employee trust, change management, and routine disruption need specialized research. The purpose of this Special Issue is to extend the debate on the role of strategic management in the digital transformation era.

This Special Issue particularly looks forward to empirical and literature review articles on the following, among others:

How do digital transformations impact upon the antecedents of new venture formation and the role and skills of entrepreneurs in driving such start-up opportunities?
While the firms from all around world are racing to recruit digital talents, what are the necessary skills required to perform relevant roles? How can firms/start-ups build a team with the requisite skills to successfully pursue an opportunity?
How can start-ups leverage relevant technologies associated with industry 4.0 to capture value and rapidly expand their businesses in the market? What are the capabilities required to enable such scaling processes?
How can entrepreneurs or established multinational enterprises (MNEs) leverage digital technologies associated with industry 4.0 to accelerate international growth and enhance international performance?
As industry 4.0 represents profound changes in society, how do governments, incumbent firms, start-ups, and other relevant parties collaborate to tackle these challenges?
How do industry 4.0 technologies influence social, environmental, and economic upgrading?

Dr. Saqib Shamim
Dr. Usama Awan
Guest Editors

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Published Papers (12 papers)

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Research

17 pages, 654 KiB

Open AccessArticle

The Strategic Role of Digital Transformation: Leveraging Digital Leadership to Enhance Employee Performance and Organizational Commitment in the Digital Era

by Guanming Qiao, Yannan Li and Ahreum Hong

Systems 2024, 12(11), 457; https://doi.org/10.3390/systems12110457 - 30 Oct 2024

Viewed by 340

Abstract

Given the rapid advancements in the digital transformation era, digital leadership has become essential for enhancing employee performance and organizational commitment. This study specifically examines the mediating role of digital transformation in the relationship between digital leadership, employee performance, and organizational commitment, drawing on data collected between June and August 2024 from 579 participants across diverse industries. The findings demonstrate that digital leadership significantly enhances employee outcomes by driving digital transformation, which serves as a crucial intermediary that amplifies the positive effects of leadership. This research underscores the importance of aligning leadership strategies with digital transformation initiatives, especially in the DT-driven business landscape, to promote sustainable growth and maintain a competitive edge. By highlighting the combined influence of leadership and digital transformation on employee performance and organizational commitment, this study provides valuable insights for organizations addressing the complexities of digital change. It also emphasizes the pivotal role of leadership in fostering innovation and organizational resilience in the digital transformation era. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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21 pages, 609 KiB

Open AccessArticle

Green Innovation Driven by Digital Transformation: An Innovation Chain Perspective

by Chenguang Dong, Yang Shen and Guobin Geng

Systems 2024, 12(9), 349; https://doi.org/10.3390/systems12090349 - 6 Sep 2024

Viewed by 912

Abstract

Taking the innovation chain (IC) as the perspective, we discuss the effect of digital transformation (DT) on enterprises’ green innovation (GI) using data from Chinese listed companies from 2013 to 2021. The results show that DT has a positive effect on enterprises’ GI, and this effect is not only reflected in the quantity of green patent applications but also the GI efficiency and quality. Heterogeneity analysis shows that DT has a positive effect on GI for both large firms and small and medium-sized enterprises (SMEs), but the effect is greater for SMEs. Relative to enterprises that have received governmental incentive-based industrial policies, the effect is smaller in the enterprises that have no incentive-based industrial policies and are subjected to command-based environmental regulations. As the level of industry competition increases from low to high, the impact of DT on GI will grow. However, when the level of industry competition becomes excessively high, the impact will decrease. DT positively affects enterprises’ GI behaviors by facilitating the cultivation of human capital, improving the allocation of innovation resources, and increasing the level of cooperative green innovation. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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20 pages, 760 KiB

Open AccessArticle

Does Digitalization Strategy Affect Corporate Rent-Seeking? Evidence from Chinese-Listed Firms

by Xiang Yu and Yanzhe Liu

Systems 2024, 12(6), 209; https://doi.org/10.3390/systems12060209 - 13 Jun 2024

Viewed by 1137

Abstract

The issue of corporate rent-seeking, which stems from the misuse of authority, remains a critical concern for the international community. Drawing on agency theory and resource dependence theory, this study explores the relationship between corporate digitalization strategies (DSs) and corporate rent-seeking. We test our theoretical hypotheses by utilizing panel data encompassing Chinese A-share listed companies from 2004 to 2021. Our findings suggest that corporate DSs have a significant negative influence on rent-seeking. Several robustness tests support this conclusion. Moreover, our analysis indicates that a DS is particularly effective in curtailing rent-seeking behaviors within state-owned enterprises (SOEs) compared with their non-state-owned counterparts. However, contrary to our hypothesis, a DS is less effective in suppressing corporate rent-seeking among firms where the executive team has legal backgrounds. These findings suggest that top managers, especially within SOEs, should prioritize the early formulation of digital transformation strategies to reduce rent-seeking behavior. Additionally, when implementing digital transformation, firms should carefully integrate members with legal backgrounds into their executive teams and strengthen ethical education and supervision for executives with legal expertise. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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20 pages, 416 KiB

Open AccessArticle

Do Not Reinvent the Wheel: A Checklist for Developing National 5G Strategies

by Sümeyra Köstereli and Ercan Ergün

Systems 2024, 12(6), 193; https://doi.org/10.3390/systems12060193 - 3 Jun 2024

Viewed by 826

Abstract

Digital transformation is taking place across all levels of governance, from small businesses to governments. If the seed of digital transformation is data, then reliable connectivity is the nourishing soil that data need to prosper. With digital transformation, billions of connections require more broadband. In response to this need, some countries are preparing national 5G strategies, as 5G technology has been identified as a significant driver of the digital economy. In this study, 16 national 5G strategies have been systematically and comprehensively analyzed, and a checklist has been developed to formulate national 5G strategies and policies. The checklist can be used by policymakers, especially in developing countries, to guide the preparation of national 5G strategies and policies. Of course, each country’s national strategy will differ regarding resources, culture, etc. It is hoped that this checklist may speed up the preparation process by providing a baseline during the strategy formulation phase and make the process more efficient by incorporating lessons learned, especially for developing countries. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

16 pages, 2266 KiB

Open AccessArticle

Talent Management Digitalization and Company Size as a Catalyst

by Pedro César Martínez-Morán, Fernando Díez, Josu Solabarrieta, José María Fernández-Rico and Elene Igoa-Iraola

Systems 2024, 12(5), 168; https://doi.org/10.3390/systems12050168 - 8 May 2024

Viewed by 2018

Abstract

As companies increasingly undergo digital transformation, the role of talent management processes becomes pivotal in enhancing overall organizational performance. The objective of this research is to assess the extent to which greater digitalization in the talent management process is linked to company size. The research has addressed four research questions in order to explore the significance of talent management in corporate digital transformation, examining whether variations in the digitalization of these processes can be attributed to company size. A qualitative approach was employed, utilizing a questionnaire, and collecting responses from 202 organizations across diverse sectors. The findings reveal disparities in digitalization throughout the talent management process, with pronounced presence in the attracting, selecting, and rewarding phases, but diminishing in deployment and development, and further declining in planning. A positive correlation between company size and the adoption of specific digital platforms was observed. Larger enterprises exhibit greater utilization of digital platforms in talent deployment and development. Moreover, corporate communication tools are consistently utilized in the rewarding phase, irrespective of company size. These findings offer practical insights for organizations aiming to optimize their digitalization strategies based on their scale, thereby contributing to more effective and tailored digitalization endeavours. The uniqueness of this research lies in its exploration of the influence of company size on the digitalization of talent management processes and its potential to explain variations across different stages of these processes. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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17 pages, 1180 KiB

Open AccessArticle

Do Cross-Border Mergers and Acquisitions by Emerging Market Enterprises Enhance Long-Term Productivity? The Host Country Market Size Effect Moderated by Technological Absorption Efforts

by Xia Liu, Jiaqi Fang, Xin Hu and Yiwei Lv

Systems 2024, 12(5), 161; https://doi.org/10.3390/systems12050161 - 2 May 2024

Viewed by 1433

Abstract

The purpose of this study was to establish a spatial structural framework to explore how cross-border mergers and acquisitions (M&As) in emerging markets can enhance long-term productivity and select the appropriate host country market structures. Utilizing cross-border M&A data from Chinese companies from 2008 to 2016, we developed a moderated U-shaped mediation model. Employing Two-Stage Least Squares and the Generalized Method of Moments for endogeneity analysis, we offer robust empirical insights. Our findings illustrate that enterprise productivity progression from cross-border M&As is significantly influenced by a U-shaped mediation of the host country’s market size effect, which is further moderated by the technological distance between the home and host countries. A high technological distance intensifies the U-shaped mediation of market size effects on enterprise productivity, while low technological distances result in an inverted U-shaped curve, indicating that such markets may boost short-term productivity but limit long-term growth. Conversely, larger markets with greater technological distances better support sustained productivity increases, even requiring persistent technological absorption efforts. This study underscores the necessity of selecting appropriate host country market structures and effectively managing the acquisition timeline to positively impact both short- and long-term productivity. By conceptualizing firm-level technological absorption efforts as the technological gap between the home and host countries, this study highlights the crucial moderating role that the technological gap plays in influencing long-term productivity at the macro level, providing new insights into the economic geographic strategic decisions and spatial planning for emerging market enterprises in cross-border acquisitions. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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37 pages, 9009 KiB

Open AccessArticle

The Impact of a Skill-Driven Model on Scrum Teams in Software Projects: A Catalyst for Digital Transformation

by Vayodya Haputhanthrige, Ikram Asghar, Sidra Saleem and Saqib Shamim

Systems 2024, 12(5), 149; https://doi.org/10.3390/systems12050149 - 26 Apr 2024

Cited by 3 | Viewed by 2053

Abstract

Human skills are a critical factor in the success or failure of a digital project. Limited studies have been conducted to identify the industry demand for skills of scrum roles (product owner, scrum master, web developer) and levels (entry, associate, mid-senior). The evaluation of skills over time benefits both decision-makers and associated team members, which leads to successful project completions. The aim of this research is to improve decision making concerning the level-specific skills of selected scrum roles for digital projects. The study identifies major and minor skills, patterns, and relationships between levels, and formulates the mathematical equations as the most important inputs to the skill-driven model’s implementation and evaluation. Both qualitative and quantitative research methods were used to analyse 900 surveyed job advertisements published on LinkedIn in Europe. Descriptive analysis was used to analyse quantitative data while the deductive approach was followed with thematic analysis. There are required skill sets for each level of roles, level-specific skills, industry-demanded skills, and formulas related to the initial and individual skill ratings that are investigated. A new mechanism for evaluation is introduced based on “the time spent with skills”. As a result, the proposed model is implemented by feeding research findings into the Mendix programming platform. The skill-driven model is a decision-support solution in software project management to evaluate skills which assist in assigning the right person to the right digital project. Further investigation on different job portals can help to improve the accuracy of industry standards and reduce the lack of progression skills by overcoming limitations identified in this paper. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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26 pages, 2012 KiB

Open AccessArticle

Transitioning to Agile Organizational Structures: A Contingency Theory Approach in the Financial Sector

by Darley Biviana Pacheco-Cubillos, Josefa Boria-Reverter and Jaime Gil-Lafuente

Systems 2024, 12(4), 142; https://doi.org/10.3390/systems12040142 - 22 Apr 2024

Cited by 2 | Viewed by 4857

Abstract

The primary objective of this investigation is to explore the key factors within a large corporation that facilitate the transition from a conventional hierarchical organizational structure to a more agile one. Although there are studies in the literature on the different agile organizational structures, there are no clear guidelines for a large company to transform to an agile framework. This study employs contingency theory as its framework and specifically focuses on the financial sector to identify both opportunities and challenges encountered during this transformation process. Qualitative research methods were employed, involving an analysis of five case studies in which managers served as respondents. This research contributes to the identification of a model as a guideline for the transformation of the organizational structure towards agility that can provide valuable information for companies undergoing such a transformation. The managers surveyed provided their experience and the competencies of their profiles were validated, in addition to the application of the Delphi method to obtain more objective information. The findings underscore that large companies should refrain from adopting a completely flat hierarchical structure. Moreover, there exists a set of strategic-level elements that serve as a guiding framework for the transformation process. Furthermore, it is essential to acknowledge that the transformation process itself does not follow a one-size-fits-all approach; rather, it is contingent upon the unique context of each individual case, and it is also a cultural challenge. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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19 pages, 1294 KiB

Open AccessArticle

The Non-Linear Impact of Digitalization on the Performance of SMEs: A Hypothesis Test Based on the Digitalization Paradox

by Xinqiang Chen, Xiu-e Zhang, Zhiwen Cai and Jiangjie Chen

Systems 2024, 12(4), 139; https://doi.org/10.3390/systems12040139 - 20 Apr 2024

Cited by 1 | Viewed by 2311

Abstract

While digitalization offers new opportunities for small- and medium-sized enterprises (SMEs), it also introduces the phenomenon of the “digitalization paradox”. This paper develops a theoretical model comprising digitalization, digital technology–business alignment, external social capital, and SMEs’ performance, rooted in strategic alignment theory (SAT) and social capital theory (SCT). The necessary data for the study were obtained by distributing questionnaires to 352 small and medium-sized enterprises engaged in digital practices in China, and hierarchical regression analysis was employed to investigate the impact of digitalization on the performance of SMEs and its boundaries of influence. The results indicate an inverted U-shaped relationship between digitalization and SME performance, with both digital technology–business alignment and external social capital serving as positive moderators. Specifically, digital technology–business alignment and external social capital both enhance the positive impact of digitalization on the performance of SMEs and mitigate its negative effects. The findings enhance comprehension of the “digitalization paradox” and offer new insights and solutions for SMEs to navigate the opportunities and challenges of digitalization. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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26 pages, 4324 KiB

Open AccessArticle

System Approach to the Process of Institutional Transformation for Industrial Integrations in the Digital Era

by Tatyana Tolstykh, Nadezhda Shmeleva, Alexey Boev, Tatiana Guseva and Svetlana Panova

Systems 2024, 12(4), 120; https://doi.org/10.3390/systems12040120 - 6 Apr 2024

Cited by 1 | Viewed by 1547

Abstract

The digitalization of the high-tech economy is complicated due to several issues. One can mention non-synchrony and imbalance in the development of industrial enterprises and their integrations; changes in the elements and relations between enterprises and the external environment; as well as contradictions between the actors. Therefore, a new institutional system for industrial integrations needs to be formed. This article proposes a concept and scenario of the institutional change needed to bolster industrial integrations in the digital economy. The structural logic and algorithm of the process provides for the gradual progress through seven phases of institutional transformation. The authors have developed an institutional change management platform for strategic transformation, the core of which is a decision-making system. The platform supports the management of digital and material business processes of industrial integrations. The conceptual approach is based on a comparison of the life cycles of enterprises and their markets. The article proposes a methodology for assessing the readiness of industrial integrations to implement institutional change strategies using modified Shewhart control charts. The methodology is based on a two-criterion approach to the analysis of finances, production reserves, human resources, organizational structures, management technologies, corporate institutions, and a personnel motivation system. This approach allows determining the level of compliance of the resources available with the requirements of the transformation strategy implementation plan. The methodology has been tested at 14 enterprises functioning as industrial integration actors. According to the dynamics of the level of readiness to implement the transformation strategy, enterprises within the framework of industrial integrations are divided into three groups: enterprises with consistently high, medium, and low levels of readiness to implement the strategy. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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28 pages, 715 KiB

Open AccessArticle

Unleashing Green Innovation in Enterprises: The Transformative Power of Digital Technology Application, Green Human Resource, and Digital Innovation Networks

by Jian Liu, Qibin Wang and Chaoyi Wei

Systems 2024, 12(1), 11; https://doi.org/10.3390/systems12010011 - 30 Dec 2023

Cited by 3 | Viewed by 3046

Abstract

The rapid development of digital technology has injected new vitality into green technological innovation within manufacturing enterprises. Proper application of digital technology during the innovation process can propel global sustainable development. Using Chinese publicly traded manufacturing firms as a sample, this study employed a constructed digital technology innovation network and OLS models to unveil the mechanisms through which digital technology application affects green technological innovation. This research reveals a significant positive impact of the breadth and depth of digital technology applications on companies’ green technological innovation performance. Green human resource allocation serves as an intermediary in this relationship. Furthermore, the embeddedness and structural embeddedness of the digital technology innovation network play a significantly positive moderating role in the relationship between digital technology applications and green human resource allocation. This discovery provides a theoretical foundation for how companies can harness digital technology to promote green innovation within China’s digital strategy. It aids manufacturing enterprises in optimizing digital technology applications, improving green human resource allocation, and facilitating the development of digital technology innovation networks, advancing more sustainable development and contributing to global environmental goals. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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18 pages, 2754 KiB

Open AccessArticle

Research on the Measurement and Characteristics of Virtual Agglomeration Based on Social Network Analysis: Evidence from 29 Manufacturing Industries in China

by Qing Zhang, Shaofeng Ru and Yiyang Cheng

Systems 2023, 11(12), 571; https://doi.org/10.3390/systems11120571 - 8 Dec 2023

Viewed by 1951

Abstract

(1) Background: Virtual agglomeration reshapes the organizational form and drives the sustainable development of the manufacturing industry. How to measure the virtual agglomeration level of the manufacturing industry is an important and difficult problem for current research. (2) Methods: In this study, we constructed a social network for the virtual agglomeration of the manufacturing industry, with each industry representing a node in the network. We also measured the virtual agglomeration level of the overall manufacturing industry using the network edge number and network density indicators in the social network analysis method. Each sub-industry virtual agglomeration level was measured using the point centrality index. Furthermore, the virtual agglomeration characteristics of the manufacturing industry were examined through cluster analysis and core–periphery analysis. The data sources include the supply chain statistics and virtual agglomeration text data of manufacturing enterprises. The virtual agglomeration text data were obtained with the help of Python crawler technology. Two types of data were matched, and the virtual agglomeration data of 29 manufacturing industries in China from 2012 to 2022 was obtained. (3) Results: The virtual agglomeration level of the overall manufacturing industry is constantly improving, but there are large differences among different industries. Moreover, the virtual agglomeration of the manufacturing industry has the characteristics of both specialization and diversification. The virtual agglomeration social network of the manufacturing industry is experiencing an evolution process from a “core–periphery” structure to a “core–semi-periphery–periphery” structure. (4) Conclusions: This study provides a theoretical basis and practical reference for improving the virtual agglomeration level of the manufacturing industry. Full article

(This article belongs to the Special Issue Strategic Management in Digital Transformation Era)

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