Digital transformation and ambidexterity in incumbent companies

Although digital transformation has become an important strategic pillar for incumbent companies, the expected outcome is often not realized. This is primarily driven by the complex character of digital transformation, going beyond technologies and the associated organizational structure changes. This dissertation provides an overarching framework to guide leaders of digital transformations in incumbent companies. Given the correlation between ambidexterity and digital innovation, it includes detailing the exploration and exploitation elements in digital transformation, the role of the leaders, and the ways to achieve structural ambidexterity. The overall research design consists of a literature review, advanced with an explorative research design element of 33 semi-structured interviews. This combination allows for answering the different research questions on the overarching research on digital transformation and ambidexterity. The dissertation concludes that digital transformation includes elements of exploration and exploitation. Leaders guiding digital transformation journeys of incumbent companies need to be aware of the differences, consider tendencies, and strive to balance the paradoxical activities. Considering the digital maturity grade, the closeness to the core business, and the differences between exploration and exploitation is necessary when applying structural ambidexterity to achieve that balance. The dissertation contributes to the lack of empirical research on structural ambidexterity and digital transformation by providing in-depth knowledge to enable structural ambidexterity in the digital context. Furthermore, it guides practitioners in incumbent companies facing challenges in digital transformation.