Digital transformation of global business processes: the role of dual embeddedness

Purpose While much existing research on multinational corporation (MNC) digital transformation has followed a linear design and implementation logic using cross-sectional data, the multiple and divergent needs of headquarters (HQ) and subsidiaries suggest that MNC digital transformation actually inv...

Full description

Saved in:
Bibliographic Details
Published in:Business process management journal 2020-04, Vol.26 (2), p.570-592
Main Authors: Ekman, Peter, Thilenius, Peter, Thompson, Steven, Whitaker, Jonathan
Format: Article
Language:English
Subjects:
Business Studies
Digital
Embeddedness
External
Företagsekonomi
Global
Headquarters
Internal
Internet
MNC
Multinational
Multinational corporations
Standardization
Subsidiaries
Subsidiary
Transformation
Transformations
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Purpose While much existing research on multinational corporation (MNC) digital transformation has followed a linear design and implementation logic using cross-sectional data, the multiple and divergent needs of headquarters (HQ) and subsidiaries suggest that MNC digital transformation actually involves a more iterative journey. The purpose of this paper is to apply the theoretical perspective of embeddedness to better define the complexities of MNC digital transformation, and identify how HQ and subsidiaries can navigate the complexities. Design/methodology/approach This paper presents a longitudinal multi-case study of five Forbes Global 2000 firms that are HQ in Europe with large subsidiaries in the USA. The authors conducted in-depth interviews with 26 senior executives at HQ and subsidiaries over a 15-month period. Findings The process of digital transformation is significantly influenced by internal embeddedness (relationship of HQ with subsidiaries and across subsidiaries) and external embeddedness (relationship of subsidiaries with their local markets), and also by strategy, financial and technology considerations. While HQ and subsidiaries have different perspectives, an understanding of these influences can help HQ and subsidiaries navigate digital transformation. Research limitations/implications HQ and subsidiaries can apply insights from this research to navigate the complexities of digital transformation. Originality/value This paper demonstrates that embeddedness is a useful theory to understand the complexities of MNC digital transformation.
ISSN:1463-7154
1758-4116
1758-4116
DOI:10.1108/BPMJ-02-2019-0080