From planning to execution: how manufacturing firms manage external collaborations in digital transformation projects

Abstract

The growing pressure to remain competitive in technologically evolving markets has made digital transformation (DT) a strategic imperative for manufacturing firms. However, the technical complexity of Industry 4.0 initiatives often exceeds organizations’ internal expertise, increasing the need for external knowledge and capabilities. Therefore, inter-organizational collaborations are widely recognized as indispensable tools for bridging these knowledge gaps. However, the literature has largely overlooked how these relationships are operationally managed in manufacturing firms. This study analyzes the mechanisms that guide external collaboration during the planning and execution phases of DT projects. Utilizing a qualitative and inductive approach, the research is based on five semi-structured interviews with Italian manufacturing firms active in various production sectors. The thematic analysis of the data led to the identification of four interconnected strategic dynamics that govern the relationship with external partners: hybrid governance, iterative co-planning, intensive coordination and adaptive collaboration. The analysis of the findings suggests that external collaboration in DT projects is a highly dynamic process, in which firms and partners progressively adapt their interactions and responsibilities. Overall, this work contributes to existing literature by offering a process-oriented and socio-technical perspective of how manufacturing firms manage and adapt external collaborations throughout the different phases of DT projects.