Benefits and Risks of Digital Transformation at the Firm Level: A Literature Review
Nội dung chính của bài viết
Tóm tắt
In recent years, digital transformation has gained prominence as a trending keyword in both academia and practice. Some firms have emerged as pioneers in utilizing disruptive digital technologies to enhance their performance, attracting the attention of many scholars. In this study, we aim to review and highlight the benefits and risks of digital transformation at the firm level based on existing publications. Our findings indicate three benefits: enhanced efficiency and productivity, improved customer experience, and data-driven decision-making. Additionally, we identify four risks associated with this transformation: security vulnerabilities, integration challenges, employee resistance and skill gaps, and regulatory compliance. We also provide ten recommendations for firms to select suitable digital transformation strategies based on these findings.
Chi tiết bài viết
Từ khóa
Benefits, Digital transformation, Literature review, Risks
Tài liệu tham khảo
Ahmed, A., Alshurideh, M., Al Kurdi, B., & Salloum, S. A. (2021). Digital Transformation and Organizational Operational Decision Making: A Systematic Review. In Advances in Intelligent Systems and Computing: Vol. 1261 AISC (Issue October, pp. 708–719). Springer International Publishing. https://doi.org/10.1007/978-3-030-58669-0_63
Al-Ruithe, M., Benkhelifa, E., & Hameed, K. (2018). Key Issues for Embracing the Cloud Computing to Adopt a Digital Transformation: A study of Saudi Public Sector. Procedia Computer Science, 130(C), 1037–1043. https://doi.org/10.1016/j.procs.2018.04.145
Appio, F. P., Frattini, F., Petruzzelli, A. M., & Neirotti, P. (2021). Digital Transformation and Innovation Management: A Synthesis of Existing Research and an Agenda for Future Studies. Journal of Product Innovation Management, 38(1), 4–20. https://doi.org/10.1111/jpim.12562
Chen, Y.-Y. K., Jaw, Y.-L., & Wu, B.-L. (2016). Effect of digital transformation on organisational performance of SMEs. Internet Research, 26(1), 186–212. https://doi.org/10.1108/IntR-12-2013-0265
Feliciano-Cestero, M. M., Ameen, N., Kotabe, M., Paul, J., & Signoret, M. (2023). Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization. Journal of Business Research, 157(C), 113546. https://doi.org/10.1016/j.jbusres.2022.113546
Fernández-Rovira, C., Álvarez Valdés, J., Molleví, G., & Nicolas-Sans, R. (2021). The digital transformation of business. Towards the datafication of the relationship with customers. Technological Forecasting and Social Change, 162(C), 120339. https://doi.org/10.1016/j.techfore.2020.120339
Garcia-Perez, A., Cegarra-Navarro, J. G., Sallos, M. P., Martinez-Caro, E., & Chinnaswamy, A. (2023). Resilience in healthcare systems: Cyber security and digital transformation. Technovation, 121(C), 102583. https://doi.org/10.1016/j.technovation.2022.102583
Gil-Gomez, H., Guerola-Navarro, V., Oltra-Badenes, R., & Lozano-Quilis, J. A. (2020). Customer relationship management: digital transformation and sustainable business model innovation. Economic Research-Ekonomska Istraživanja, 33(1), 2733–2750. https://doi.org/10.1080/1331677X.2019.1676283
Gölzer, P., & Fritzsche, A. (2017). Data-driven operations management: organisational implications of the digital transformation in industrial practice. Production Planning & Control, 28(16), 1332–1343. https://doi.org/10.1080/09537287.2017.1375148
Gomez-Trujillo, A. M., & Gonzalez-Perez, M. A. (2022). Digital transformation as a strategy to reach sustainability. Smart and Sustainable Built Environment, 11(4), 1137–1162. https://doi.org/10.1108/SASBE-01-2021-0011
Gray, J., & Rumpe, B. (2017). Models for the digital transformation. Software & Systems Modeling, 16(2), 307–308. https://doi.org/10.1007/s10270-017-0596-7
Guo, L., & Xu, L. (2021). The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector. Sustainability, 13(22), 12844. https://doi.org/10.3390/su132212844
Guo, X., Li, M., Wang, Y., & Mardani, A. (2023). Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia. Journal of Business Research, 163(C), 113868. https://doi.org/10.1016/j.jbusres.2023.113868
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Jardak, M. K., & Ben Hamad, S. (2022). The effect of digital transformation on firm performance: evidence from Swedish listed companies. The Journal of Risk Finance, 23(4), 329–348. https://doi.org/10.1108/JRF-12-2021-0199
Jedynak, M., Czakon, W., Kuźniarska, A., & Mania, K. (2021). Digital transformation of organizations: what do we know and where to go next? Journal of Organizational Change Management, 34(3), 629–652. https://doi.org/10.1108/JOCM-10-2020-0336
Ji, Z., Zhou, T., & Zhang, Q. (2023). The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China. Sustainability, 15(3), 2117. https://doi.org/10.3390/su15032117
Kotarba, M. (2018). Digital transformation of business models. Foundations of Management, 10(1), 123–142. https://doi.org/10.2478/fman-2018-0011
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. SAGE Open, 11(3), 215824402110475. https://doi.org/10.1177/21582440211047576
Leão, P., & Silva, M. M. (2021). Impacts of digital transformation on firms’ competitive advantages: A systematic literature review. Strategic Change, 30(5), 421–441. https://doi.org/10.1002/jsc.2459
Li, F. (2020a). Leading digital transformation: three emerging approaches for managing the transition. International Journal of Operations and Production Management, 40(6), 809–817. https://doi.org/10.1108/IJOPM-04-2020-0202
Li, F. (2020b). The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, 92–93(January), 102012. https://doi.org/10.1016/j.technovation.2017.12.004
Maglaras, L., Kantzavelou, I., & Ferrag, M. A. (2021). Digital Transformation and Cybersecurity of Critical Infrastructures. Applied Sciences, 11(18), 8357. https://doi.org/10.3390/app11188357
Masoud, R., & Basahel, S. (2023). The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation. Digital, 3(2), 109–126. https://doi.org/10.3390/digital3020008
Mazurchenko, A., & Maršíková, K. (2019). Digitally-Powered Human Resource Management: Skills and Roles in the Digital Era. Acta Informatica Pragensia, 8(2), 72–87. https://doi.org/10.18267/j.aip.125
Metawa, N., Elhoseny, M., & Mutawea, M. (2022). The role of information systems for digital transformation in the private sector: a review of Egyptian SMEs. African Journal of Economic and Management Studies, 13(3), 468–479. https://doi.org/10.1108/AJEMS-01-2021-0037
Moi, L., & Cabiddu, F. (2021). Leading digital transformation through an Agile Marketing Capability: the case of Spotahome. Journal of Management and Governance, 25(4), 1145–1177. https://doi.org/10.1007/s10997-020-09534-w
Morakanyane, R., Grace, A., & O’Reilly, P. (2017). Conceptualizing Digital Transformation in Business Organizations: A Systematic Review of Literature. Digital Transformation – From Connecting Things to Transforming Our Lives, 427–443. https://doi.org/10.18690/978-961-286-043-1.30
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
Osman, A. M. S., Elragal, A. A., & Ståhlbröst, A. (2022). Data-Driven Decisions in Smart Cities: A Digital Transformation Case Study. Applied Sciences, 12(3), 1732. https://doi.org/10.3390/app12031732
Plekhanov, D., Franke, H., & Netland, T. H. (2022). Digital transformation: A review and research agenda. European Management Journal, January. https://doi.org/10.1016/j.emj.2022.09.007
Ren, C., Lee, S. J., & Hu, C. (2023). Digitalization Improves Enterprise Performance: New Evidence by Text Analysis. SAGE Open, 13(2), 1–10. https://doi.org/10.1177/21582440231175871
Ribeiro-Navarrete, S., Botella-Carrubi, D., Palacios-Marqués, D., & Orero-Blat, M. (2021). The effect of digitalization on business performance: An applied study of KIBS. Journal of Business Research, 126(C), 319–326. https://doi.org/10.1016/j.jbusres.2020.12.065
Schlegel, D., & Kraus, P. (2023). Skills and competencies for digital transformation – a critical analysis in the context of robotic process automation. International Journal of Organizational Analysis, 31(3), 804–822. https://doi.org/10.1108/IJOA-04-2021-2707
Sestino, A., Prete, M. I., Piper, L., & Guido, G. (2020). Internet of Things and Big Data as enablers for business digitalization strategies. Technovation, 98(C), 102173. https://doi.org/10.1016/j.technovation.2020.102173
Shahi, C., & Sinha, M. (2021). Digital transformation: challenges faced by organizations and their potential solutions. International Journal of Innovation Science, 13(1), 17–33. https://doi.org/10.1108/IJIS-09-2020-0157
Sousa-Zomer, T. T., Neely, A., & Martinez, V. (2020). Digital transforming capability and performance: a microfoundational perspective. International Journal of Operations & Production Management, 40(7/8), 1095–1128. https://doi.org/10.1108/IJOPM-06-2019-0444
Stewart, H. (2023). Digital Transformation Security Challenges. Journal of Computer Information Systems, 63(4), 919–936. https://doi.org/10.1080/08874417.2022.2115953
Teng, X., Wu, Z., & Yang, F. (2022). Research on the Relationship between Digital Transformation and Performance of SMEs. Sustainability (Switzerland), 14(10), 1–17. https://doi.org/10.3390/su14106012
Tijan, E., Jović, M., Aksentijević, S., & Pucihar, A. (2021). Digital transformation in the maritime transport sector. Technological Forecasting and Social Change, 170(C), 120879. https://doi.org/10.1016/j.techfore.2021.120879
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing Workplaces for Digital Transformation: An Integrative Review and Framework of Multi-Level Factors. Frontiers in Psychology, 12(March), 1–24. https://doi.org/10.3389/fpsyg.2021.620766
Troshani, I., Janssen, M., Lymer, A., & Parker, L. D. (2018). Digital transformation of business-to-government reporting: An institutional work perspective. International Journal of Accounting Information Systems, 31(C), 17–36. https://doi.org/10.1016/j.accinf.2018.09.002
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Yucel, S. (2018). Estimating the Benefits, Drawbacks and Risk of Digital Transformation Strategy. 2018 International Conference on Computational Science and Computational Intelligence (CSCI), 233–238. https://doi.org/10.1109/CSCI46756.2018.00051
Zaoui, F., & Souissi, N. (2020). Roadmap for digital transformation: A literature review. Procedia Computer Science, 175, 621–628. https://doi.org/10.1016/j.procs.2020.07.090
Zhang, T., Shi, Z. Z., Shi, Y. R., & Chen, N. J. (2022). Enterprise digital transformation and production efficiency: mechanism analysis and empirical research. Economic Research-Ekonomska Istrazivanja, 35(1), 2781–2792. https://doi.org/10.1080/1331677X.2021.1980731
Al-Ruithe, M., Benkhelifa, E., & Hameed, K. (2018). Key Issues for Embracing the Cloud Computing to Adopt a Digital Transformation: A study of Saudi Public Sector. Procedia Computer Science, 130(C), 1037–1043. https://doi.org/10.1016/j.procs.2018.04.145
Appio, F. P., Frattini, F., Petruzzelli, A. M., & Neirotti, P. (2021). Digital Transformation and Innovation Management: A Synthesis of Existing Research and an Agenda for Future Studies. Journal of Product Innovation Management, 38(1), 4–20. https://doi.org/10.1111/jpim.12562
Chen, Y.-Y. K., Jaw, Y.-L., & Wu, B.-L. (2016). Effect of digital transformation on organisational performance of SMEs. Internet Research, 26(1), 186–212. https://doi.org/10.1108/IntR-12-2013-0265
Feliciano-Cestero, M. M., Ameen, N., Kotabe, M., Paul, J., & Signoret, M. (2023). Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization. Journal of Business Research, 157(C), 113546. https://doi.org/10.1016/j.jbusres.2022.113546
Fernández-Rovira, C., Álvarez Valdés, J., Molleví, G., & Nicolas-Sans, R. (2021). The digital transformation of business. Towards the datafication of the relationship with customers. Technological Forecasting and Social Change, 162(C), 120339. https://doi.org/10.1016/j.techfore.2020.120339
Garcia-Perez, A., Cegarra-Navarro, J. G., Sallos, M. P., Martinez-Caro, E., & Chinnaswamy, A. (2023). Resilience in healthcare systems: Cyber security and digital transformation. Technovation, 121(C), 102583. https://doi.org/10.1016/j.technovation.2022.102583
Gil-Gomez, H., Guerola-Navarro, V., Oltra-Badenes, R., & Lozano-Quilis, J. A. (2020). Customer relationship management: digital transformation and sustainable business model innovation. Economic Research-Ekonomska Istraživanja, 33(1), 2733–2750. https://doi.org/10.1080/1331677X.2019.1676283
Gölzer, P., & Fritzsche, A. (2017). Data-driven operations management: organisational implications of the digital transformation in industrial practice. Production Planning & Control, 28(16), 1332–1343. https://doi.org/10.1080/09537287.2017.1375148
Gomez-Trujillo, A. M., & Gonzalez-Perez, M. A. (2022). Digital transformation as a strategy to reach sustainability. Smart and Sustainable Built Environment, 11(4), 1137–1162. https://doi.org/10.1108/SASBE-01-2021-0011
Gray, J., & Rumpe, B. (2017). Models for the digital transformation. Software & Systems Modeling, 16(2), 307–308. https://doi.org/10.1007/s10270-017-0596-7
Guo, L., & Xu, L. (2021). The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector. Sustainability, 13(22), 12844. https://doi.org/10.3390/su132212844
Guo, X., Li, M., Wang, Y., & Mardani, A. (2023). Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia. Journal of Business Research, 163(C), 113868. https://doi.org/10.1016/j.jbusres.2023.113868
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Jardak, M. K., & Ben Hamad, S. (2022). The effect of digital transformation on firm performance: evidence from Swedish listed companies. The Journal of Risk Finance, 23(4), 329–348. https://doi.org/10.1108/JRF-12-2021-0199
Jedynak, M., Czakon, W., Kuźniarska, A., & Mania, K. (2021). Digital transformation of organizations: what do we know and where to go next? Journal of Organizational Change Management, 34(3), 629–652. https://doi.org/10.1108/JOCM-10-2020-0336
Ji, Z., Zhou, T., & Zhang, Q. (2023). The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China. Sustainability, 15(3), 2117. https://doi.org/10.3390/su15032117
Kotarba, M. (2018). Digital transformation of business models. Foundations of Management, 10(1), 123–142. https://doi.org/10.2478/fman-2018-0011
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. SAGE Open, 11(3), 215824402110475. https://doi.org/10.1177/21582440211047576
Leão, P., & Silva, M. M. (2021). Impacts of digital transformation on firms’ competitive advantages: A systematic literature review. Strategic Change, 30(5), 421–441. https://doi.org/10.1002/jsc.2459
Li, F. (2020a). Leading digital transformation: three emerging approaches for managing the transition. International Journal of Operations and Production Management, 40(6), 809–817. https://doi.org/10.1108/IJOPM-04-2020-0202
Li, F. (2020b). The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, 92–93(January), 102012. https://doi.org/10.1016/j.technovation.2017.12.004
Maglaras, L., Kantzavelou, I., & Ferrag, M. A. (2021). Digital Transformation and Cybersecurity of Critical Infrastructures. Applied Sciences, 11(18), 8357. https://doi.org/10.3390/app11188357
Masoud, R., & Basahel, S. (2023). The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation. Digital, 3(2), 109–126. https://doi.org/10.3390/digital3020008
Mazurchenko, A., & Maršíková, K. (2019). Digitally-Powered Human Resource Management: Skills and Roles in the Digital Era. Acta Informatica Pragensia, 8(2), 72–87. https://doi.org/10.18267/j.aip.125
Metawa, N., Elhoseny, M., & Mutawea, M. (2022). The role of information systems for digital transformation in the private sector: a review of Egyptian SMEs. African Journal of Economic and Management Studies, 13(3), 468–479. https://doi.org/10.1108/AJEMS-01-2021-0037
Moi, L., & Cabiddu, F. (2021). Leading digital transformation through an Agile Marketing Capability: the case of Spotahome. Journal of Management and Governance, 25(4), 1145–1177. https://doi.org/10.1007/s10997-020-09534-w
Morakanyane, R., Grace, A., & O’Reilly, P. (2017). Conceptualizing Digital Transformation in Business Organizations: A Systematic Review of Literature. Digital Transformation – From Connecting Things to Transforming Our Lives, 427–443. https://doi.org/10.18690/978-961-286-043-1.30
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
Osman, A. M. S., Elragal, A. A., & Ståhlbröst, A. (2022). Data-Driven Decisions in Smart Cities: A Digital Transformation Case Study. Applied Sciences, 12(3), 1732. https://doi.org/10.3390/app12031732
Plekhanov, D., Franke, H., & Netland, T. H. (2022). Digital transformation: A review and research agenda. European Management Journal, January. https://doi.org/10.1016/j.emj.2022.09.007
Ren, C., Lee, S. J., & Hu, C. (2023). Digitalization Improves Enterprise Performance: New Evidence by Text Analysis. SAGE Open, 13(2), 1–10. https://doi.org/10.1177/21582440231175871
Ribeiro-Navarrete, S., Botella-Carrubi, D., Palacios-Marqués, D., & Orero-Blat, M. (2021). The effect of digitalization on business performance: An applied study of KIBS. Journal of Business Research, 126(C), 319–326. https://doi.org/10.1016/j.jbusres.2020.12.065
Schlegel, D., & Kraus, P. (2023). Skills and competencies for digital transformation – a critical analysis in the context of robotic process automation. International Journal of Organizational Analysis, 31(3), 804–822. https://doi.org/10.1108/IJOA-04-2021-2707
Sestino, A., Prete, M. I., Piper, L., & Guido, G. (2020). Internet of Things and Big Data as enablers for business digitalization strategies. Technovation, 98(C), 102173. https://doi.org/10.1016/j.technovation.2020.102173
Shahi, C., & Sinha, M. (2021). Digital transformation: challenges faced by organizations and their potential solutions. International Journal of Innovation Science, 13(1), 17–33. https://doi.org/10.1108/IJIS-09-2020-0157
Sousa-Zomer, T. T., Neely, A., & Martinez, V. (2020). Digital transforming capability and performance: a microfoundational perspective. International Journal of Operations & Production Management, 40(7/8), 1095–1128. https://doi.org/10.1108/IJOPM-06-2019-0444
Stewart, H. (2023). Digital Transformation Security Challenges. Journal of Computer Information Systems, 63(4), 919–936. https://doi.org/10.1080/08874417.2022.2115953
Teng, X., Wu, Z., & Yang, F. (2022). Research on the Relationship between Digital Transformation and Performance of SMEs. Sustainability (Switzerland), 14(10), 1–17. https://doi.org/10.3390/su14106012
Tijan, E., Jović, M., Aksentijević, S., & Pucihar, A. (2021). Digital transformation in the maritime transport sector. Technological Forecasting and Social Change, 170(C), 120879. https://doi.org/10.1016/j.techfore.2021.120879
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing Workplaces for Digital Transformation: An Integrative Review and Framework of Multi-Level Factors. Frontiers in Psychology, 12(March), 1–24. https://doi.org/10.3389/fpsyg.2021.620766
Troshani, I., Janssen, M., Lymer, A., & Parker, L. D. (2018). Digital transformation of business-to-government reporting: An institutional work perspective. International Journal of Accounting Information Systems, 31(C), 17–36. https://doi.org/10.1016/j.accinf.2018.09.002
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Yucel, S. (2018). Estimating the Benefits, Drawbacks and Risk of Digital Transformation Strategy. 2018 International Conference on Computational Science and Computational Intelligence (CSCI), 233–238. https://doi.org/10.1109/CSCI46756.2018.00051
Zaoui, F., & Souissi, N. (2020). Roadmap for digital transformation: A literature review. Procedia Computer Science, 175, 621–628. https://doi.org/10.1016/j.procs.2020.07.090
Zhang, T., Shi, Z. Z., Shi, Y. R., & Chen, N. J. (2022). Enterprise digital transformation and production efficiency: mechanism analysis and empirical research. Economic Research-Ekonomska Istrazivanja, 35(1), 2781–2792. https://doi.org/10.1080/1331677X.2021.1980731