Relating Integrative Capabilities and Institutional Logics to Digital Transformation A case-study of a public sector organization

Abstract

Digital transformation represents a process of disruptions caused by digital technologies, and not only is reconfiguration of technologies required, also of business operations, management concepts and structures. Two factors have been found in literature to have, in each aspect, a relation to digital transformation, namely, Integrative capabilities and institutional logics. Integrative capabilities reflect shared understanding and knowledge within an organization, and represent the capacity for firms to engage in effective communication as coordination of activities, objectives and investments across divisions. Institutional logics are rules taken for granted and determine how organizations and individuals act, and how history and heritage might affect the choices and abilities to reconfigure. This study examines how integrative capabilities and institutional logics relates to digital transformation. In order to do so, the relation between integrative capabilities and digital transformation, the relation between Institutional logics and digital transformation, and the relation between integrative capabilities and institutional logics is explored. Thus, a conceptual framework is created to describe the three relations. A qualitative method was used by conducting a single case-study of a public sector organization delivering IT-services. Data was collected through 11 semi-structured interviews, and 14 obtained steering documents from the organization. Findings acknowledge that integrative capabilities and institutional logics have a strong relationship to digital transformation, hence the current process of digital transformation at the public sector organization is affected by these relations in an adverse way. The framework of this study enlightened the importance of coordination for both integrative capabilities and institutional logics, in order to establish shared and comprehensive understanding across the organization.