Digital Transformation in Large Established Organizations: Four Restructuring Dilemmas based on Dynamic Capabilities

This study explores the intricate strategic implications of digital transformation for large established organizations operating within dynamic environments. While digital transformation has garnered substantial attention in the context of startups, large established organizations face unique challenges in balancing existing capabilities with adopting new digital capacities. This research sheds light on how large established organizations navigate the interplay between change and stability during digital transformation by employing a dynamic capabilities framework. Through a systematic literature review of 123 articles from leading journals, the research categorizes large established organizations dynamic capabilities into four domains: performance, leadership, governance, and structure. The findings reveal that for each domain large established organizations encounter a range of dilemmas during digital transformation. The study highlights the need for large established organizations to address these dilemmas and operationalize digital transformation effectively. By offering a comprehensive perspective on these challenges, the study provides valuable guidance for researchers and managers seeking to navigate the complexities of digital transformation in established organizations. The paper concludes by outlining potential directions for future research in this evolving field.

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