Navigating Change Dualities: A Case-Based Exploration of 
Episodic and Continuous Approaches in Digital Transformation 
 
 
 
 
Authors:  
Gevindu Pushpakumara 
Yuan Cai 
Supervisor:  
Fredrik Lavén 
Department:  
Graduate School  
Course:  
GM0861 V25 Master Degree Project in Management  
Spring 2025
 
Navigating Change Dualities: A Case-Based Exploration of Episodic and 
Continuous Approaches in Digital Transformation 
Gevindu Pushpakumara 
Master of Science in Management, University of Gothenburg, School of Business, Economics, 
and Law 
Yuan Cai 
Master of Science in Management, University of Gothenburg, School of Business, Economics, 
and Law 
ABSTRACT:  
Digital transformation has been recognised as a complex phenomenon that extends beyond 
technological adoption, encompassing change management philosophies and broader social 
implications. However, the mechanisms by which organisations navigate and manage changes 
throughout digital transformation remain under-researched. This study examines how 
organisations manage the implementation of digital transformation projects from a change 
management perspective. Rooted in the most established change management models (episodic 
change and continuous change), this study employs a qualitative case study methodology, 
concentrating on two digital transformation projects. Empirical data were collected through semi-
structured interviews and document studies of the respective cases, and the Grounded Theory 
approach was deployed in analysing the data. The study examines the different and dynamic 
change mechanisms implemented in digital transformations to achieve project goals and suggests 
suitable transformation practices appropriate for each change approach. The insights of the study 
contribute to the contemporary academic debate on change management approaches, while 
offering practical guidance for practitioners aiming to navigate digital transformation. 
 
KEYWORDS: 
Case study, change management, continuous change, digital transformation, episodic change, 
transformation practices 
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1. INTRODUCTION 
With rapid advancements in information and communication technologies in the 21st century, 
‘digital transformation’ has been recognised as a crucial strategic move by contemporary 
businesses, as there has been an unprecedented expansion of new technologies and challenges in 
keeping pace with the fast-changing business environment (Nambisan et al., 2019). Ever-evolving 
digital tools, such as augmented reality, virtual reality, cryptocurrencies, the internet of things, and 
cloud computing, have not only enabled exponential growth for organisations (Cefis et al., 2023), 
but have also introduced significant challenges in transforming business models, value creation, 
and organisational culture (Kraus et al., 2021). Digital transformation has been enthusiastically 
portrayed by business and management scholars as an essential opportunity that business leaders 
should seize to gain competitive advantages and respond to customers' rapidly changing demands 
(Xue et al., 2024). 
As digital transformation demands a holistic interconnection between technology and business 
models, the transformation of value creation mechanisms, and adaptation to changes, a call has 
been made for researchers to leverage change management theories to explore emerging challenges 
(Rialti & Filieri, 2024; Kherrazi & Roquilly, 2025). Since Lewin’s pioneering work in 1947, the 
study of change management has undergone transitions—from planned change models to 
emergent change theories, and more recently, to cross-disciplinary research—evolving alongside 
the global business landscape (Da Ros et al., 2023). The dichotomy between planned and emergent 
change has been extensively discussed in both academia and practice since their emergence (Weick 
& Quinn, 1999; Boonstra, 2023). However, with the rise of digital transformation, questions have 
increasingly been raised about whether these classic models remain applicable to contemporary 
businesses (Boonstra, 2023; Kherrazi & Roquilly, 2025). The rapid pace of technological 
advancement and the extensive scope of digital transformation have prompted academia to develop 
more appropriate theoretical frameworks for managing change in the context of digital 
transformation (Vial, 2019; Hanelt et al., 2021). 
Nevertheless, despite a few studies on theories that connect change management and digital 
transformation (Hanelt et al., 2021; Boonstra, 2024; Kherrazi & Roquilly, 2025), a lack of research 
has been identified in the application of these theories to the implementation of digital 
transformation projects. This study has therefore been designed to address this gap through the 
lens of change management, to provide practical insights into managing the implementation of 
digital transformation projects for both practitioners and researchers. By leveraging two cases of 
digital transformation projects conducted in low-digitised organisations, the study aims to examine 
how these projects are managed and implemented from a change management perspective. Thus, 
a contribution is expected to be made to the literature on digital transformation and change 
management by addressing the research question: ‘How digital transformation implementations 
are managed?’ Drawing on data from case studies, insights are intended to be offered into how 
organisations manage change in the digital era. 
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By examining two cases of IT service companies tasked with digital transformation projects for 
clients from traditional and low-digitised industries, an illustration is aimed to be provided of how 
these digital transformation projects are implemented in real-life contexts. The results are expected 
to contribute to the development of literature in both digital transformation and change 
management, and to explore whether current change management models remain applicable to 
digital transformation projects. The intention of this study is not to prescribe the best solution for 
practitioners and researchers, but to offer a more nuanced understanding of how digital 
transformation projects are implemented and managed, with attention to different change 
management models, flexibility and control measures, and the balance between various models 
and approaches. In doing so, this study seeks to advance both theoretical knowledge and practical 
insights, enabling organizations to better navigate the complexities of digital transformation in a 
dynamic and evolving business environment. 
The remainder of the paper is organised as follows: Sections two and three are dedicated to the 
literature and theory, respectively, encompassing literature on digital transformation and the theory 
of planned and emergent change (also referred to as episodic and continuous change). The research 
methodology is outlined in Section four, while the findings are presented in Section five. A 
discussion is provided in Section six, whereas Section seven concludes the study by outlining the 
overall implications and directions for future research. 
 
2. LITERATURE REVIEW  
2.1 Digital Transformation 
Digital transformation has been regarded as a trending topic since the beginning of the 21st century, 
and a wide range of literature has been published in the recent decade (Omol, 2023); yet a clearly 
unified definition of the concept is lacking, and the understanding of digital transformation is found 
to vary across most research (Vial, 2019). Digital transformation has been prescribed by Vial 
(2019) as “a process that aims to improve an entity by triggering significant changes to its 
properties through combinations of information, computing, communication, and connectivity 
technologies.” In contrast, Reis et al. (2018) regard it as a trend in management practice and 
research, merely reflecting a renovation of old-fashioned IT-enabled change initiatives, with the 
only significant new challenge being the integration of digital aspects into existing business 
models. Gong and Ribiere (2020), through their review define digital transformations as “a 
fundamental change process, enabled by the innovative use of digital technologies accompanied 
by the strategic leverage of key resources and capabilities, aiming to radically improve an entity 
and redefine its value proposition for its stakeholders”, and digital transformation has been 
believed by them to represent a fundamental change in the value creation of business, evolving 
into an ecosystem, a societal challenge, and a necessity in the modern world. 
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Numerous trajectories of academic research have been developed in the field. Through a review 
by Nadkarni and Prügl (2021), two central aspects have been identified: technology-centric and 
actor-centric perspectives. Resultantly, a focus on these human and non-human (technological) 
facets of digital transformation has been suggested for research. ‘Digital maturity’, as a concept, 
has been defined by Westerman et al. (2014) as an assessment of the extent to which technology 
is combined with leadership for business transformation. Three elements within each of these 
pillars have been further identified by them, thereby forming a framework for digital 
transformation.  
Continuing along this trajectory, studies on digital maturity models have been reviewed by van 
Tonder et al. (2024), and a method has been developed to evaluate the digital maturity levels with 
nine dimensions and sixteen parameters. On the other hand, three stages of digital transformation 
for businesses have been identified by Verhoef et al. (2021), based on varying levels of digital 
maturity: digitisation, which involves converting analog information into digital form; 
digitalisation, which involves improving existing processes using IT; and digital transformation, 
which represents the ultimate transformation of business models. 
Theoretically, three themes—openness, affordances, and generativity—have been developed by 
Nambisan et al. (2019) as a framework for a research agenda on digital transformation, based on 
their review. They believe that considering these themes could offer a more holistic perspective 
for leveraging the benefits of digital transformation, not only for businesses but also for society as 
a whole. Moreover, Kraus et al. (2021), in their review, categorise literature into three clusters: 
technological, business, and societal. From a more visionary perspective, digital transformation 
has been regarded by them as a process that transforms the entire society, with technology as the 
main driver, and its success is seen to depend on innovations and a more open and collaborative 
world (Vărzaru & Bocean, 2024). 
2.2 Change Management 
Since the 1940s, change management has been studied intensively in organisation and 
management research. Several influential theories and approaches to change management have 
also been introduced, driven by the need to navigate increasingly complex business environments 
(Da Ros et al., 2023). 
The fundamental theory of change management is the 3-step change model of Lewin (1947), in 
which organisational change was conceptualised as a set of processes involving the destruction of 
the existing system (unfreezing), the implementation of new routines (transition), and the 
institutionalisation of these routines (refreezing). Another classical change management model is 
the 8-step model developed by Kotter (1996), through which the processes were extended into 
eight stages and short wins were recommended to recognise the impacts of change. A common 
top-down orientation in change management research during that period was reflected in Kotter’s 
model. Other models of planned change were also developed by several studies (Huse & 
Cummings, 1985; Kanter et al., 1992; Nadler & Tushman, 1997). A linear and planned approach 
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to change management was shared by these early models, and the importance of leadership and 
control was emphasised. Within this view, organisations were assumed to be operating in a stable 
environment, so the processes of change could be planned and controlled by management. The 
process of change was understood to have a clear beginning and end, with results that could be 
measured at a specific time against pre-decided goals (Boonstra, 2023). 
With the wave of globalisation and as organisations became more sophisticated since the late 20th 
century, these planned change models were increasingly critiqued for their oversimplification of 
organisational change (Orlikowski & Hoffman, 1997). The emergent change theory is positioned 
in opposition to prescriptive models, and more flexible and responsive approaches to change 
management are recommended (Garcia-Lorenzo & Liebhart, 2010). The emphasis of emergent 
change models is placed on the argument that change is driven from the bottom up and is viewed 
as a continuous process without a distinct beginning or end (Burnes, 1996). 
Multiple theories from other fields have been involved in the development of emergent change 
since then, leading to different trajectories. Stacey (1996), from a complexity theory lens, viewed 
organisations as adaptive systems, so individuals did not control that change but grew organically 
through interactions within organisations. Taking a contingency theory lens, Dunphy and Stace, 
(1993) argued that contextual factors faced by organisations, such as industry, and social and 
cultural institutions, must be considered for a successful change implementation.  
Thus, no single solution to change management or a universal change model can be applied to suit 
the situations of all organisations (Dunphy & Stace, 1993). The duality of deliberate and emergent 
strategies posed by Mintzberg & Waters (1985) also contributed to the disciplines of emergent 
change and contingency theory, as it was highlighted that different actions could be taken under 
varying conditions. The cross-disciplinary involvement, however, has formed significant 
challenges in adopting emergent change. Critiques have argued that implementing emergent 
change approaches is impractical due to the vagueness of the concepts (Burnes, 1996). The 
adoption of an emergent change approach has required a shift in organisational culture, a transition 
in leadership roles, and continuous learning and improvement, which has made it challenging to 
apply in practice (Edmondson, 1999). 
While extensive studies in change management have offered insights from multiple perspectives 
as aforementioned, new challenges have been generated by the rise of digital transformation in the 
21st century (Kherrazi & Roquilly, 2025). Accelerating globalisation and digitalisation have driven 
new theoretical developments in change management studies, enabling the integration of 
technology and human behaviour (Sverke et al., 2008). Some models commonly used in 
information technology fields have been introduced into change management research. Agile 
management, inspired by the Agile software development framework, is employed to cope with 
fast-changing environments, as it highlights iterative improvement, cross-functional collaboration, 
and flexible evolution (Denning, 2018; Beretta & Smith, 2023). Kotter’s (2014) dual operating 
5 
 
system suggests that the agile spirit be incorporated into the design of organisational hierarchies 
to create an additional operating system alongside the existing one. This dual system is designed 
to respond more quickly and innovatively to changes. The ADKAR model (Hiatt, 2006) examines 
human agency in change management by focusing on five dimensions—awareness, desire, 
knowledge, ability, and reinforcement—at the individual level. This evolution in change 
management studies reflects a shift that is not only embedded in closer connections with 
materiality but also represents a move away from linear, leader-centric change models toward more 
dynamic and human-focused approaches (Da Ros, 2023).  
 
3. THEORETICAL FRAMEWORK  
3.1 Planned Change and Emergent Change 
The contrast between planned change and emergent change approaches, also referred to by some 
scholars as the distinction between ‘episodic and continuous change’ approaches, has dominated 
academic research on change management for decades (Orlikowski & Hofman, 1997; Weick & 
Quinn, 1999; Boonstra, 2023). Hence, these terms will be used interchangeably in this study. 
Planned change, as the most classical approach, has been extensively adopted and analysed since 
its emergence. Despite some differences among the various models within its scope, this trajectory 
of change management is characterised by a view of linear and processional change. In their review 
article, Weick and Quinn (1999) summarised the previous literature and conceptualised planned 
change as a group of organisational changes that are “infrequent, discontinuous, and intentional”. 
The alternative concept, episodic change, reflects the nature of these infrequent and discontinuous 
processes. Triggers for organisational changes, from this perspective, are usually external, such as 
changes in technology or decisions made by top management. An interruption of equilibrium is 
involved, often resulting in drastic adaptations. The planned change approach is frequently adopted 
by organisations aiming to achieve specific strategic goals, with implementation carried out 
deliberately according to clear plans, stages, and short-term wins (Cunha & Cunha, 2010). The 
approach has gained popularity among both researchers and practitioners, as it provides a sense of 
direction and control, along with a clear roadmap to achieve organisational change. However, it 
has also been critiqued for oversimplifying organisational changes, ignoring different 
organisational endowments and diverse business environments (Dunphy & Stace, 1993), and 
placing minimal emphasis on the roles of middle managers and operational employees (Cunha & 
Cunha, 2010). 
Emergent (continuous) change, on the other hand, is viewed as “constant, evolving, [and] 
cumulative” (Weick & Quinn, 1999). Organisational change is seen as a pattern of continuous 
modifications to processes and practices. Unexpected incidents can trigger emergent change and 
are often implemented through micro and local interactions (Cunha & Cunha, 2010). From this 
perspective, organisational change has no defined beginning or end, focusing instead on long-term 
6 
 
incremental adaptations to the ever-changing business environment (Weick & Quinn, 1999). Thus, 
the adoption of emergent change is heavily dependent on the effectiveness of organisations in 
implementing flexibility, improvisation, and continuous learning mechanisms (Cunha & Cunha, 
2010). As flexibility, employee engagement, creativity, and resilience can be integrated through 
the emergent change approach, it has increasingly been prioritised by researchers over planned 
change. It is regarded as a crucial tool for organisations to navigate the uncertain and diverse 
contemporary business world (Orlikowski & Hofman, 1997). 
Despite the wide acceptance of emergent change as the approach more suitable for contemporary 
business environments, the planned approach continues to be advocated and remains influential 
among academia and practitioners (Hanelt et al., 2021). It has been revealed by Boonstra (2023) 
that 70% of managers still use planned change strategies in their practice, even though their 
incompatibility with contemporary business environments is recognised. The relevance of existing 
change management frameworks for digital transformation has been questioned by Kherrazi and 
Roquilly (2025). Reaffirming the usefulness of planned change models in the contemporary 
business context, a call has been made for a mixed and more integrative framework that combines 
the advantages of multiple models to manage change more effectively. This aligns with the later 
argument of Burnes (2004), which suggests that planned and emergent approaches are not 
incompatible. The combination of multiple change management approaches is therefore 
considered imperative to foster more sustainable changes in organizations. 
The contrast between planned (episodic) change and emergent (continuous) change will be 
examined in this study with reference to two cases of digital transformation implementations. By 
inspecting the elements of both planned and emergent change in these cases, the distinct features 
of the two change management approaches will be illustrated, and their intricate differences and 
connections in real-life contexts will be explored. 
3.2 Managing Organisational Change in Digital Transformation 
Due to the novelty and complexity of studying digital transformation from a change management 
perspective, literature in this field is scarce (Baptista et al., 2020; Hanelt et al., 2021; Boonstra, 
2024). The literature on digital transformation has been systematically reviewed by Hanelt et al. 
(2021), with the aim of examining the topic through the lens of organisational change management. 
From their review, a research matrix was developed, focusing on four perspectives: technology 
impact, compartmentalised adaptation, systemic shift, and holistic co-evolution. On the practical 
side, a comprehensive multi-dimensional framework for digital transformation studies was further 
developed by them, consisting of three dimensions: contextual conditions, mechanisms, and 
outcomes. 
The first dimension, namely ‘contextual conditions’, includes materiality, organisational 
antecedents, and environmental antecedents, which define the boundaries and capabilities of 
organisations in digital transformation. These antecedents collectively perform to trigger and shape 
7 
 
the implementation of digital transformation processes. Digital technologies interact with 
organisational and managerial characteristics, guiding the strategy and processes of digital 
transformation. At the same time, the interactions between materiality and organisational 
antecedents are embedded within environmental antecedents, such as the market, industry, legal, 
and socio-economic environments (Hanelt et al., 2021). 
‘Mechanisms’ include innovation and integration, which are the two types of main mechanisms 
utilised by organisations to implement digital transformation. These mechanisms involve the 
integration and application of resources and capabilities of organisations into digital 
transformation, both on operational and strategic levels. On one hand, innovation mechanisms 
include elements such as the development of digital strategy, exploitation of digital capabilities, 
and merging with human-technology interactions. On the other hand, integration mechanisms 
include the combination of new elements with existing elements within the organisations. (Hanelt 
et al., 2021) Effective execution of mechanisms is crucial for digital transformation, and it may 
involve incorporating innovative management activities, such as adopting agile methodologies to 
enhance flexibility (Lill & Wald, 2021), or reconfiguring team capacity to utilise workplace 
technologies (Baptista et al., 2020). 
The final dimension of the framework, namely ‘outcomes’, is associated with the results of the 
interactions between the previous two dimensions. The outcomes of digital transformation are 
grouped into three categories: organisational configurations, economic outcomes, and spillovers. 
This dimension encompasses a variety of internal and external impacts of digital transformation, 
such as improved economic performance, new business models, digitalised processes, and more 
integrated markets, among others (Hanelt et al., 2021; Kraus et al., 2021). 
Hanelt et al. (2021) did not explore the application of this framework to digital transformation 
projects but pointed out two avenues for future research. One avenue involves studying 
phenomenological advancements, which examine organisational changes using existing lenses or 
by combining elements of both planned and emergent changes. The other involves theoretically 
generating new models (or adapting existing ones) of change management, aligning with the calls 
of Kherrazi and Roquilly (2025). In response to the suggestion for phenomenological 
advancement, this study expects to utilise the perspectives of planned (episodic) change and 
emergent (continuous) change approaches to examine the change management of two digital 
transformation projects. By leveraging the digital transformation framework developed by Hanelt 
et al. (2021), this study aims to contribute to the literature by applying classic change management 
models and assessing their usefulness in digital transformation. 
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4. METHODOLOGY 
4.1 Research Design 
According to the research question, ‘how digital transformation implementations are managed,’ a 
qualitative research approach is considered effective and appropriate for addressing the topic, as 
the phenomenon is investigated through different practice approaches with the aim of obtaining 
in-depth information (Silverman, 2021). In addition, the qualitative approach is recognised for its 
suitability in addressing ‘how’ questions, offering insightful understanding of real-life situations 
(Yin, 2017). As emphasised in qualitative case study research methods, a comprehensive analysis 
of contextual factors—extending beyond the boundaries of the primary unit of analysis—is 
enabled, allowing data to be gathered based on behaviours, perceptions, and actions observed. As 
an attempt to examine ‘how digital transformation implementations are managed,’ qualitative case 
study research was pursued through interviews and documentary studies to enable data 
triangulation. 
Case selection and expert interviews are regarded as pivotal in qualitative research (Yin, 2017). 
Therefore, two potential cases and the relevant experts or practitioners under each case were 
selected for interviews, including those with expertise in managing the digital transformation 
projects within the respective cases. According to Geels and Kemp (2007), cross-organisation case 
studies are considered effective for focusing on the practice of digital transformations through 
different approaches. The two cases exhibited similarities beyond their digital transformation 
implementation approaches, as criteria such as the number of project participants involved and the 
project size (in terms of budget and resource allocation) were taken into account. Additionally, 
both organisations were identified as being in a state of low digitalisation. When the study was 
designed, a deliberate decision was made to avoid focusing on a specific industry in order to 
explore the research topic comprehensively from different industry perspectives (Yin, 2017). The 
practice insights obtained from the study are expected to be replicable in future research assessing 
practices in managing digital transformation initiatives across other practice contexts (Flyvbjerg, 
2006). 
The grounded theory approach was selected to analyse the collected data, employing an iterative 
process through which the proposed theory naturally emerges from the data during the data 
collection process (Gioia et al., 2012). This iterative process allows for the reassessment and 
refinement of the initial codes, with additional perspectives and insights being taken into account. 
 
4.2 Settings of the Study 
The following includes the two cases (projects) that have been analysed. 
 Project Case 1: Cn-Co (the Chinese client company) is a healthcare retailer headquartered in 
southern China, established in the 1970s by three medical professionals. Its resilience and 
9 
 
adaptability in an intense, competitive market have led to its recognition as one of the most 
prominent pharmacy chains in the region. Cn-Co’s core appeal is reflected in its diverse 
pharmaceutical offerings—spanning medication, skincare, vitamins, and baby care—delivered 
through both B2B and B2C channels. An international brand image is balanced with local products, 
allowing customers to benefit from competitive pricing. During the COVID-19 pandemic, a focus 
on essential health products and hygiene items enabled its role to be solidified as a pillar of the 
community (Source: Organisation’s official website). 
However, success in the South region was not replicated in other areas, and a gradual decrease in 
turnover was observed. This was attributed by the executives to the brand's declining appeal among 
younger generations who have grown up with e-commerce and social media. Consequently, a 
digitalisation project was initiated. A team of nine was assembled for this purpose, comprising a 
project manager, a UX designer, software engineers, and supporting OPS staff. The project was 
commenced in July 2022, and its first phase—development—was carried out over three months. 
Subsequently, the project team continued to be engaged by Cn-Co for a nine-month maintenance 
period of the app, and simultaneously extended the digital transformation initiative across other 
areas of the company. 
 Project Case 2: Se-Co (the Swedish client company) is recognised as a prominent player in a 
leading automobile service industry chain in Sweden, located in Gothenburg. Since its 
inauguration in 1999, Se-Co has been regarded as a pioneer in car reconditioning, paint protection, 
and interior detailing services, offering expert care to restore vehicles to their pristine condition 
and provide lasting protection. Services have been offered to both business and private customers, 
with Se-Co serving three major industry brands in Sweden—Hedin, Ford, and Kia—as well as a 
large number of private clients (Source: Organisation’s official website). 
As a private limited company, a digital transformation project was initiated by Se-Co to replace 
the previous manual order processing system. The earlier method involved customers completing 
a printed template form with their required services upon visiting the workplace. The new project 
was launched in 2023, with a project team composed of Se-Co’s staff. Order processing has been 
gradually optimised through continuous improvements in the new system, accompanied by 
enhanced customer interactivity, transparency, and convenience as additional features were 
introduced. Interest in the initiative has been shown by the regional agent and top management of 
the service chain, and financial technological support has been provided to revitalise the 
development process, with the expectation that the system would be promoted throughout their 
business chain. 
 
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4.3 Data Collection Methods 
Multiple data collection methods were employed in the study to gather relevant information. The 
primary method involved conducting semi-structured interviews, while data obtained through 
documentary evaluations were used to enhance data triangulation. 
Interviews are regarded as fundamental in qualitative case study research (Silverman, 2021). Semi-
structured interviews were conducted using an interview guide, as recommended by Yin (2017) 
and Bell et al. (2022), to collect pertinent data. The guide was initially developed with broad 
questions addressing interviewees' general overviews, definitions, perceptions, and interpretations 
of digital transformations, and was subsequently narrowed down to specific aspects such as 
measurement approaches, chains of accountability, frameworks, and evaluation criteria. This 
approach, endorsed by Charmaz (1995), enabled the identification of prominent themes raised by 
the interviewees and facilitated the exploration of similarities and differences between individuals 
and the two cases. The interview guide concluded with an opportunity for additional questions and 
remarks, allowing follow-up inquiries and enabling interviewees to share further insights. A total 
of seventeen questions were included in the guide, and the same set of questions was administered 
to all participants within the case organisation, regardless of their position in the organisational 
hierarchy. 
Semi-structured interviews were conducted for each case project, involving participants connected 
to the digital transformation initiatives (i.e., project team members) of the respective organisations. 
Through the use of semi-structured interviews, organisational and project constituents involved in 
the digital transformation initiatives were able to openly convey their perceptions and describe 
how they managed the initiatives, reflecting the approach advocated by Silverman (2021). A 
grounded approach was followed, as it facilitated the reduction of preconceived understandings. 
Twenty semi-structured interviews were conducted, with nine and eleven interviews taken 
respectively from Project Case 1 and Project Case 2. Saturation was realized at these numbers 
through an iterative data collection and analysis process, in alignment with Hennink and Kaiser 
(2021). A purposive sampling approach was employed for participant selection, as it assists in 
identifying individuals closely related to the study’s focus (Silverman, 2021). Only one author was 
present with the interviewees at a time, as this approach helps avoid interviewer dominance and 
promotes freedom for interviewees to share ideas openly (Kvale, 2006). The interviews were 
conducted both physically and online via Zoom; this hybrid method enabled cost-effectiveness and 
convenience, following Archibald et al. (2019). No technical issues were encountered, as all 
interviewees were familiar with the Zoom software. All interviews were recorded to prevent 
omission of important information. Transcripts for the virtual interviews were generated 
automatically through the Zoom platform, which has been shown to have high accuracy. As 
transcripts were simultaneously examined alongside audio files, errors, omissions, and underlying 
meanings were detected and corrected. Most interviews were conducted in English, while those 
held in other languages were conducted in a language in which at least one author was proficient. 
These were later translated into English, the common language shared by both authors. Interviews 
11 
 
not conducted in English were translated using Google Translate software, with careful attention 
paid to avoid misrepresentations or misinterpretations. Physical interviews were transcribed and 
coded soon after completion, as this was believed to aid in effectively identifying similarities and 
differences within the data, also recommended by Silverman (2021). The interview process 
commenced in mid-February and continued until mid-April 2025. The average interview duration 
was approximately thirty-five minutes. Interviewees’ names were withheld to maintain 
confidentiality. Details of the interview participants are provided in Table 1. 
Table 1: Interview Participant Details 
Project Case 1 No of Interviews Project Case 2 
No of 
Interviews 
Admin. supervisor 1 System Architect 1 
Project manager 1 Project Manager 1 
Procurement Supervisor 1 Programmer 1 
Software Engineer 1 Project Coordinator 1 
Accountant 1 Delivery Manager 1 
CEO 1 Workstation Employee(s) 2 
OPS Director 1 Project Owner 1 
UX Designer 1 Operations Executive 1 
Project Manager 1     
Software Engineer 1     
CTO 1     
Total From Case 11   9 
Total Number of Interviews 20 
A documentary analysis was also conducted to complement the data collected from the semi-
structured interviews. Organizational documents were examined as a cost-effective and efficient 
data source, providing important background information and enabling a better understanding of 
the contextual settings (Bowen, 2009). Both external and internal documents of the project cases 
were utilized in this analysis. Necessary notes were made of the key aspects identified through the 
documentary analysis. A detailed overview of the documents used is provided in Annexure 1.  
4.4 Data Analysis 
The grounded theory approach was selected to analyse the collected data, as it comprises an 
iterative process whereby the proposed theory is naturally derived from the data throughout the 
data collection phase (Gioia et al., 2012). This iteration enables the initial codes to be reassessed 
and challenged, allowing additional perspectives to be acknowledged. Furthermore, the grounded 
12 
 
theory approach permits hypotheses to be derived through thorough data analysis rather than being 
preconceived (Silverman, 2021); constant data comparisons were therefore performed. 
Detailed data revisions, systematic labelling, and coding were practised continuously and 
simultaneously with data collection, as recommended by Silverman (2021). An open coding 
approach was applied, where codes were not generated in advance but emerged from the empirical 
data (Corbin & Strauss, 2008). Intercode reliability was ensured by the involvement of both 
authors in the coding process, with mutual consensus reached over the codes. 
With the codes extracted from the transcripts and other documentary notes, each sentence and 
phrase was examined to identify raw concepts at the level of initial coding. The first phase of 
coding focused on identifying foundational details related to the research question. At the second 
coding level, the initial codes were merged into clusters based on their commonalities and 
similarities, derived from the foundational details identified in the first level. These concepts were 
then developed with a theoretical perspective, focusing on the study’s central theme. Themes were 
generated by merging clusters of the second-level codes, taking inspiration from the multi-
dimensional framework of digital transformation proposed by Hanelt et al. (2021), representing 
the three digital transformation stages. 
Sixty-three codes were generated at the first level of coding, which were then cascaded into eleven 
second-level codes and ultimately narrowed down to three themes, namely: ‘Harmonising 
Mindsets and Context: Bridging External Contexts and Organisational Determinants’; ‘Innovating 
Through Integration: Interactive Intelligence as a Driver of Organisational Transformation’; and 
‘Outcomes in Motion: Organisational Realignment, Economic Uplift, and Impact Beyond 
Borders.’ Annexure 2 presents a comprehensive outline of the inductive theme derivation process, 
aligned with Gioia et al. (2012) and inspired by the multi-dimensional digital transformation 
framework of Hanelt et al. (2021). This methodology is endorsed by Silverman (2021) when 
researching contextual phenomena, practices, and differences that may indicate variations in the 
practice of digital transformations. 
4.5 Limitations and Ethical Reflections 
Despite the cautious selection of methodology by the authors, methodological limitations are 
present in this study. As a case study, the extent to which the insights derived can be generalised 
to practices in other cases or industries remains questionable. The empirical data were primarily 
collected through interviews, which introduces the possibility that the descriptions may not fully 
reflect actual practices. Although the interview data were triangulated with document analysis, 
complete elimination of such discrepancies may not have been achieved. Since interviewees were 
informed that the conversations would be recorded, certain criticisms may have been withheld due 
to ‘social desirability bias1’ (Nederhof, 1985). The time scope of the study was relatively short; 
thus, the long-term outcomes of the two digital transformation projects have not yet been observed, 
 
1 Respondents provide answers to questions they think will present them positively to others, hiding their genuine opinions or 
experiences.   
13 
 
limiting the ability to assess their effectiveness. Furthermore, the study focused on the micro level, 
i.e., within the boundaries of the organisations, despite efforts to examine the surrounding context 
through external documentary sources. However, the two projects examined operate in different 
industries and socio-economic contexts. The macro-environment, naturally, would influence the 
progression of these projects. Future research may include the impact of such external factors or 
adopt a socio-materiality perspective. 
This study was conducted in accordance with the regulations of the University of Gothenburg 
(2024). Neither of the authors was employed by, nor held interests in, the organisations involved, 
thereby enhancing the independence of the study. All interviewees were provided with brief 
introductions to the study, outlining its objectives, methodology, potential results, and involved 
parties. Written or verbal consent was obtained from each participant prior to their interview. 
Interviewees were informed that audio recordings would be made and transcribed, that no personal 
information beyond job titles would be published, and that they were entitled to withdraw at any 
time during the interviews. During field visits and the document study, photographs were taken 
only with the permission of the organisations and individuals involved. All information that could 
be traced back to individuals or the exact names of the organisations was anonymised in the data 
presentation. All data collected during the process were used solely for the purpose of this study 
and will be deleted upon its completion. 
 
5. FINDINGS AND ANALYSIS 
5.1 Harmonising Mindsets and Context: Bridging External Contexts and Organisational 
Determinants 
 Cn-Co, the organisation where Project Case 1 is situated, launched a digital transformation 
initiative aimed at attracting online customers and increasing its market share. Drawing inspiration 
from industry leaders such as Amazon, the initiative envisioned a rapid surge in Cn-Co's revenue. 
Furthermore, the rising e-commerce trends in China, particularly in the healthcare sector, such as 
online pharmacies, telemedicine services, and the use of AI and big data in personalised healthcare, 
have made the Chinese healthcare market more competitive with tailored customer services. This 
shift in market dynamics has prompted Cn-Co to initiate this project. This project thus necessitates 
a significant overhaul of existing processes, replacing manual pharmaceutical retail operations 
with an automated, technology-integrated digital shopping experience. Consequently, project 
participants interpreted the digital transformation initiative in a broader and more radical 
transformational manner, as highlighted by the OPS director's statement regarding their intention 
to expand Cn-Co's capacity. 
"Simply speaking, digital transformation is not just a matter of buying a software system, it is more 
like a full-body development exercise for an enterprise. We need to change the skeleton, for 
example, infrastructure from servers to the cloud, and strengthen the muscles. Using AI or big data 
to optimise the process. In the end, changing genes."  
14 
 
The administration supervisor of Project Case 1 concurrently defined digital transformation as a 
process promising a significant transition within Cn-Co to achieve its goals by reconstructing 
organisational value using technology, optimising the operational cost structure, improving asset 
turnover efficiency, and assisting business decisions. In addition, other participants involved in the 
project, such as the CTO and UX designer, perceive digital transformation as a step-by-step 
evolution, as in the case of Cn-Co, which operated with an outdated system. Considering all the 
opinions of Project Case 1 constituents, it was generally conceptualised by the authors that the 
project's bottom-line objective was to maintain a competitive advantage and lead the market by 
more effectively identifying customer needs and enhancing the shopping experience. 
The hierarchical structure of Cn-Co granted significant authority to top management while placing 
less emphasis on ground-level staff. The departmental roles, individual job roles, tasks, and targets 
were explicitly defined, creating a culture with boundaries not only between departments but also 
between individual positions. Additionally, the departmental boundaries within Cn-Co 
necessitated the formation of cross-functional teams for various project activities, including 
employee training.  
The interviewees also highlighted the poor technological knowledge within the company and the 
absence of a digital transformation strategy prior to the project's implementation, indicating the 
need to leverage the organisation from the ground up. Despite starting from zero, the project team 
implemented a detailed plan that defined the future states of the transformation, along with 
prescribed milestones, as evidenced by the project report. Prior to the commencement, staff 
members were provided with coaching services under the purview of Cn-Co top management, 
which lasted for a reasonable period owing to the employees' inadequate technical competence. 
The OPS Director of Project Case 1 detailed how the employee training programmes were 
conducted to prepare the organisation for the transformation amid a lack of technical personnel 
and outlined measures for managing similar situations in the future. HR professionals were also 
engaged in facilitating coaching and equipping the Cn-Co staff. As a result of these training and 
coaching sessions, employees quickly adapted to the change and the pursuit of new efficiencies. 
The mandatory training sessions for employees and warehouse staff ensured that every staff 
member fit into the system, regardless of age. The Project Manager of Project Case 1 highlighted 
how the training programmes at Cn-Co have transformed the staff to be equally competent. 
"At that time, we set a standard to help them through all aspects. First, the data delay must be 
shortened to 15 minutes…It is to let every new clerk only need two hours of training to get on the 
job, especially some of the senior staff in their warehouse. They are all older, and the aunt who was 
50 years old can also do it." 
Moreover, the Chinese digital transformation guide that Cn-Co referred to highlighted an extensive 
range of regulations, including the Cybersecurity Law, Data Security Law, Personal Information 
Protection Law, Critical Information Infrastructure Protection Rules, Algorithm and AI 
Regulation, and other Industry-Specific Regulations. The CEO stated that the impact of 
international regulations and policies, as well as the global political situation and the turbulence of 
these boundary mechanisms, shapes the transformation of Project Case 1 as follows.  
15 
 
"We need to look at the laws and regulations of the government, such as securities…Externally, the 
industry rule is the play of the government, which is the invisible master of government 
regulation…As soon as the policy of 'pacing east algorithm to the west' policy came out, we added 
the so-called plan the index of crossing the synchronous delay…Another thing that is easily 
overlooked is the international political situation…it still has a certain impact on our business, 
everyone is used to it." 
 Project Case 2, in contrast, initiated digital transformations aimed at automating routine 
administrative tasks, improving system transparency, optimising labour utilisation, and 
streamlining processes, thereby ensuring operational efficiency that supports sustained business 
growth. The swift digital adoption in Sweden, combined with the necessity for transparency and 
automation, propelled Se-Co towards implementing this project. The project team envisions a fully 
automated system as the ultimate objective, delivering uninterrupted end-to-end customer service. 
They also regard this initiative as a strategic solution to overcome challenges and obstacles in 
internal business processes by leveraging technology to replace manual workflows with digital 
alternatives, promoting more efficient use of time and resources while improving transparency. 
Concurrently, the system architect of Project Case 2 provided his interpretation of digital 
transformation within the project context, focusing on automating and streamlining processes. 
"Basically my perspective of this digital transformation is moving or eliminating all the manual 
stuff, all the manually handled stuff, manual bookkeeping and billing and eliminating those stuff 
while streamlining the process. So they have currently, they have some processes. I mean, before 
the digital transformation began, they had some process communicating between the clients and 
how their workers organise the work orders. But here we have a goal to streamline that process as 
well."  
Environmental consideration has been one of the key focuses for Se-Co, simultaneously aligning 
with the EU Twin Transition programme. The interviewees emphasised the importance of reducing 
environmental impact through reduced paper usage and the resulting optimisation of resource 
utilisation, expressing optimism that environmental KPIs will be incorporated into the project's 
later phases. The Project Owner of Case 2 highlighted that their sustainability efforts were closely 
tied to Se-Co's capacity planning and resource utilisation. 
"We have a couple of parall lines actually. One is uh we are working with sustainability and 
environment. We burn a lot of energy here. These big machines work. For example, once while we 
are working, some urgent customer comes here, and then we need to stop everything, put it aside, 
and help him out. So that has to happen a lot of time, and it's happening all the time. So that can 
be totally eliminated. We know which car is coming at what time, and we can plan for that. Then, 
we will get rid of a lot of waste that will help the environment and distill help for the society." 
Se-Co fostered an open, participatory culture, steering towards a feedback-oriented, ambitious 
approach. This culture within Se-Co has played a crucial role in propelling the organisation 
forward, characterised by a more flexible reporting structure fundamentally supported by informal 
reporting yet properly monitored. Failures were acknowledged, and ideas were encouraged, 
especially from the operational level. The system implementation is therefore expected to 
capitalise on transparency and connectivity, utilising technology to link customers with value 
chains. This technological advancement aims to enhance employee learning and drive industrial 
progress while delivering an optimised supply chain within the automobile services ecosystem. 
16 
 
Furthermore, the compliance requirements of the EU GDPR necessitated Se-Co's adherence to 
critical elements such as consent, storage limitations, and the integrity and confidentiality of 
customer data, thereby establishing boundaries and additional system requirements. The project 
was launched as a minimum viable product in 2023 and has since made significant progress. The 
system follows an improvement approach under three key continuous phases. The project process 
intended to be intricately woven into Se-Co's regular operations, fostering a continuous 
evolutionary entanglement, in contrast to the other case. As a result, the implementation was 
expected to be relatively slower at the outset compared to Project Case 1, due to modifications to 
both internal and external communication methods, as well as Se-Co's structural changes. 
5.2 Innovating Through Integration: Interactive Intelligence as a Driver of Organisational 
Transformation 
 Project Case 1 showcased established rigid reporting lines, well-defined job roles, and 
departmental responsibilities aligned with Cn-Co’s organisational hierarchy. For instance, while 
the top management, along with the project team, assumes a dominant role, the project team's 
technical director reports on overall technology output ratios to the quarterly review meeting, 
which includes resource utilisation, revenue growth, and efficiency improvements. The technical 
strategy team and top management are primarily responsible for the initiative. The project status 
is then communicated to the project management office, which compiles it for the CEO of Cn-Co. 
Additionally, the project manager provided weekly updates to top management on the project's 
progress.  
Discussing the specifically defined job roles in the project, interview findings indicated that the 
CTO and team were assigned technical issues, OPS managed operational matters, and Finance 
focused on revenue and profitability, highlighting distinct departmental roles and focus. Each 
relevant department establishes aligned targets specific to its functional lens for any new 
initiatives, contributing to a cohesive and collaborative development effort. Cross-departmental 
tensions within the company also emerged as a prominent concern among project participants. A 
typical scenario involved the technical department and the project manager approaching the 
finance department before any system upgrade. The accountant provided the following insights 
using a discussion between finance and technical functions. 
"We have basically two people in charge, CTO is the good cop, and finance is the bad cop. For 
example, in every quarterly meeting, CTO is always, he is more used to saying something 
exciting…saying our blockchain technology is far ahead of competitors. Then I might pour cold 
water on him immediately, like 'but our electricity bill was overdrawn by 30% last quarter'."  
Feedback updates and reports (regarding the project) from lower levels are transmitted 
hierarchically to higher levels; following departmental manager approval, they proceed to the 
deputy general manager and subsequently to the general manager. These updates are reviewed 
during quarterly meetings. Although an internal feedback mechanism for employees exists, it is 
rarely utilised and remains loosely integrated with the formal feedback process. As a result, 
employee input is frequently overlooked unless it involves a critical comment, as witnessed by 
interviewees. In contrast, the CEO makes suggestions for advancing the system based on insights 
17 
 
from attending conferences. The project manager noted that one such idea involved introducing a 
feature for inviting friends, which originated after the CEO attended a technology forum. 
Additionally, the following remarks were offered by him, further exemplifying the CEO’s 
contributions to the project. 
"He (CEO) requires us to have a virtual store experience score in the project evaluation. We 
immediately added to study how to quantify immersion. Finally, the average stay time of users and 
the click-through rate of 3D products, and the private effect is not easy to say. But it may be the 
personal preference of the boss that can really change the standard."  
Furthermore, KPIs and performance measures of the project were established within a hierarchical 
framework aligned with the organisational structure, where subordinate KPIs strengthened more 
significant indicators. The alignment and favourable performance of these supporting KPIs 
effectively guided the dominant indicators in the desired direction. For instance, the 'all-channel 
operational efficiency index' serves as the principal KPI, which is further broken down into 
product-specific turnover ratios, staff performance metrics, cycle times, and capacity utilisation 
rates—creating a network of interconnected measurements. These interconnected measurement 
systems and controls helped reduce the interdepartmental tensions by aligning the functions with 
greater congruence. 
Top management also decided the project’s evaluation frameworks in consultation with the project 
team. Technology maturity models, extended balanced scorecards, and agile development 
frameworks were implemented to address the varying needs of the departments. According to the 
documentation, the extended balanced scorecard plays a pivotal role, encompassing multiple 
performance dimensions under each perspective. For instance, under the extended balanced 
scorecard, 'network security' included KPIs that address system and regulatory requirements, such 
as customer data protection regulations, notably within the Chinese Digital Parameter Guidance 
Platform.  
The structured reporting system, uniformly guided by Cn-Co's top management, implemented 
department-specific KPIs for the digital transformation initiative. These structured measures 
demonstrated increased proactivity in executing their KPIs and introducing new upgrades to their 
web application. This proactive system behaviour was further exemplified by internal audits 
involving ethical hackers, risk mapping, and private, incognito visits conducted by the IT team. 
During these audits, the Project Manager revealed the discovery of a loophole in the inventory 
synchronisation logic that had gone unnoticed for three years since the project's inception, all 
thanks to these proactive assurance mechanisms. Network security threats, such as piracy attacks 
from competitors, have emerged due to digital transformation initiatives, necessitating proactive 
vigilance from Cn-Co. Privacy breaches involving user data pose another critical threat, requiring 
enhanced data detection capabilities with a targeted response window of 24 hours or less. The 
Project Manager of Project Case 1 highlighted the proactive contingency measures adopted during 
emergencies as follows. 
18 
 
"We will build an engineering matrix for emergency treatment to simulate several disaster 
scenarios. For example, stores are disconnected or out of stock, and sometimes suppliers go out to 
pollute, which leads to completely inaccurate inventory. Once these problems occur, because we 
already have a pre-decided plan, the repair time can be shortened." 
Cn-Co's insular culture and employee protocols, which functioned as coercive mechanisms, 
minimised employee resistance, prompting staff to acquiesce to digital transformations endorsed 
by top management. Thus, due to the minimal resistance, the shift in employee mindsets within 
the insular culture has allowed Cn-Co to optimise processes, promoting employee congruence. 
According to the CTO of Project Case 1, employees were motivated to adapt rather than resist, 
which contributed to the project's success.   
"...Or the clerks in their stores refuse to use chainsaws (figurative language) and take the initiative 
to give us some systematic optimisation suggestions. This change of thinking is also a foundation 
for the success of digital transformation. " 
Before the project's initiation, customer engagement was facilitated through a WeChat group, 
where daily promotions, pricing, and stock availability were communicated. The project now 
employs advanced technologies such as Mixpanel and AI Blockchain, which are relatively 
complicated for non-specialists, to analyse customer behaviours and deliver tailored solutions. 
Each customer is assigned a unique membership number to enable individual identification. The 
primary challenge lies in understanding customer needs, which tend to be highly variable. The 
project team engaged in ongoing dialogue with customers to gather feedback, being aware of their 
needs and experiences and acting accordingly. Subsequently, the project team and top management 
analyse industry trends. This information is also shared with supply chain partners to ensure that 
Cn-Co is robust to face market dynamics and competition.  
 Project Case 2, in contrast, featured a more collaboratively implemented measurement and control 
system. The absence of a clearly defined scope for Se-Co team members beyond their job 
descriptions enabled them to contribute more freely and actively to the project as well. Every level 
of Se-Co employees was involved in both the operations and decision-making processes of the 
project. Project team members shared responsibility for the project's implementation and outcomes 
rather than being responsible only for their individual job roles. The interviewees stated that the 
project staff were not limited to their job titles and often participated in cross-functional tasks 
within both Se-Co’s regular and project operations. The lack of strict separation of duties often 
leads to overlapping roles across different functions in the project, which has also opened up 
avenues for opinions and allowed for resistance. Despite top management's oversight of the 
project, their limited involvement was evident.     
In contrast to the extensive network of measures imposed by top management in Project Case 1, 
Project Case 2 featured a measurement system developed with the awareness and active 
participation of operational-level employees at the workstation level. Interviewees also noted that 
no formal management or evaluation framework is utilised for monitoring the project, nor are 
external consultants involved in their work. The absence of a clear strategy for digital 
transformation at the strategic level, with the project manager stating, "There is not any proper digital 
19 
 
transformation strategy." At the operational level, KPIs have limited application throughout the 
project. The primary financial metric considered is ROI, while other operating KPIs focus on 
business operations, such as order processing time, error rate, and productivity. Customer ROI is 
a key consideration for customer adoption of the system.   
Brainstorming sessions were conducted based on input from customers and workstation employees 
rather than through formal meetings. Yet, progress evaluation sessions were held quarterly and 
included the project manager, IT team, operations executive (representing workstation staff), 
branch manager(s), and C-suite executives. Suggestions and ideas from ground-level employees 
were taken seriously, fostering a sense of ownership in the improvement process. Furthermore, 
feedback from Se-Co's vendors and customers is incorporated into the sprints to facilitate 
customer-friendly developments. The project coordinator of Project Case 2 emphasised that all-
inclusivity in development is crucial for overcoming challenges. 
"Yeah, it is kind of everybody. You evaluate and you get the information from the real users, and 
that, and at the same time, the developer, where there are possibilities and some, uh, the develop 
system, there are some challenges. So we did find the easiest, fastest way to deliver with some 
application. So it's it's a matter of everybody getting together and doing the job." 
The system's dashboard displays data on completed, pending, and ongoing orders. This order status 
can be accessed on a monthly or daily basis, supporting Se-Co's internal reporting system. 
According to the project coordinator interviewed, the reporting initiative involves two personnel 
streams despite the fluid reporting structure: one led by the project owner, who oversees the system 
entirely and works alongside a development team to implement upgrades. In addition, three distinct 
user groups — customers, employees, and IT teams — report to the project owner, creating a 
simplified and informal reporting structure. 
Stakeholders, including customers, employees, and IT specialists, are integral components of the 
project. Project Case 2 actively seeks feedback from various stakeholders, and the interviewees 
referred to this feedback mechanism as a "360-degree feedback system." All stakeholders are 
encouraged to contribute to its improvement and support Se-Co's digitalisation efforts. Workshops 
were held to assist customer adoption of the system and effectively communicate the benefits.  
The documentary data indicated that Google Analytics was used to assess feedback and user 
behaviour of Se-Co's customers and employees. Google Analytics was a relatively user-friendly 
and convenient tool for all the participants involved, as stated by interviewees, particularly when 
compared to the more complex technologies used in Project Case 1. The authors observed that 
several reactive measures were taken to address errors, particularly those related to network 
security. The project coordinator shared his views on their reactive approach and its comfort level 
as follows: 
"So so we will uh every quarter we analyse this software and the usage and if if we find any bugs 
or any any adjustments, any. What's it called um, modifications or adjusted. I mean if we need to 
adjust something or something is missing, we will, uh do a new give you a new version every week. 
So we had about now three quarters of testing and this is now real usage in production right now 
(15.02.2025)." 
20 
 
Moreover, employee orientation played a significant role in the project, as there was considerable 
resistance from staff accustomed to the existing manual system, making it challenging to move 
them out of their comfort zones and disrupt established routines. Nevertheless, the project team 
and IT professionals successfully guided them toward embracing the change. The project 
coordinator noted that a critical factor in the success of digital transformation is engaging internal 
employees throughout the process. He highlighted the concept of "citizen development2", 
underscoring that employee input is essential to the transformation journey. 
"there's a concept called citizen development like how to get how to drive this change by getting 
the inputs maximally from internal employees because the thing is not everyone is capable of 
developing these solutions…we try to gather their feedbacks their inputs related to areas how we 
can further improve these systems how we can develop new small systems and how we can scale." 
Employees were trained and upskilled to adopt best practices related to system usage and security 
awareness, including properly handling system credentials. The project manager noted that 
employee adaptation occurred more rapidly than anticipated, which was a source of enthusiasm 
for the team, primarily due to the training sessions that were largely responsible for the project's 
success. Additionally, noticeable customer adoption resulted from the workshops and collaborative 
initiatives.  
5.3 Outcomes in Motion: Organisational Realignment, Economic Uplift, and Impact Beyond 
Borders 
 Project Case 1, incorporating customer-friendly features into the system (mobile app) interface, 
became a key strategy for improving customer interaction. For instance, it provided two distinct 
interfaces: one featuring basic functionalities with large fonts in a simplified version and the other 
offering more sophisticated advanced features aimed at helping senior citizens adapt to the app 
while retaining the tech-savvy youth demographic within the customer base. Additionally, the app 
interface's theme changes with the seasons, enhancing user-friendliness. An AI chatbot's automatic 
reply feature has been integrated, ensuring continuous customer connectivity to the system.  
 
Assessing customer preferences, acknowledging feedback, and acting accordingly has 
significantly boosted Cn-Co's revenue by uncovering valuable insights. The Project Manager of 
Case 1 cited a notable example of how these customer-friendly features have contributed to 
substantial improvements in the application. 
"Last year, some users complained that they couldn't find some niche branded cosmetics by 
searching from the search bar. So we added the function of search from related words or wrong 
words. Then the search success rate increased by about 30%." 
A recent addition had been the virtual store, which employs AR technology to provide real-time 
inventory data via the store's RFID system, thus delivering an immersive virtual shopping 
experience based on customer feedback. Upon reviewing the application's customer complaint 
 
2 Citizen development is a business process that encourages and empower traditional non-IT-trained employees to become software 
developers collaborating with IT departments to build business applications. 
21 
 
window, the project team discovered an increase in complaints regarding the virtual store, 
primarily due to the necessity of completing the entire purchasing process, which some customers 
found inconvenient. One customer remarked, 'I only need to buy a bottle of soy sauce; do I have to 
climb the virtual stairs first?', which led to the addition of a feature to skip that process. 
From a customer-centric perspective, the project's emphasis is on accelerating user adoption. While 
customer adaptation is not yet fully complete particularly among senior citizens, the removal of 
checkout counters is already in progress as a project milestone. According to interview data, 
promoting technology-driven and human-less features, the authors believe this will have a 
tremendous impact on the organisation's operational network. For example, the implementation of 
self-checkout systems has raised reasonable concerns about job insecurity for operations staff, 
including shop assistants, as customers increasingly adapt to paperless, self-sufficient systems. 
Similarly, AR-based inventory systems have a comparable effect and have raised similar concerns 
regarding the roles of Cn-Co's operational-level staff. 
The system underwent a drastic shift, leading to rapid business process optimisation and significant 
increases in Cn-Co’s revenue. Discussing the advancements the project has brought to the 
company, the UX Designer of Case 1 emphasised how the technology maturity model has 
contributed to advancing Cn-Co's digitalisation efforts. 
".. the digital maturity model, which we will use to grade our customers (Cn-Co). For example, 
Company (Cn-Co) belongs to the most elementary level. At the beginning, they didn't even get 
through the basic data. Personally, in my own words, they were actually a digital baby, and now 
they can walk and jump. Sometimes they can run." 
The documents reflected a significant improvement in the primary performance objectives, 
evidenced by reductions in labour costs, better store outcomes, and an optimised operational cost 
structure, including increased turnover efficiency, fewer errors, time savings, and, ultimately, 
higher profits, signifying the project’s success. Nonetheless, the project's implications have been 
disseminated throughout the organisation; however, there is no evidence to indicate that the project 
has resulted in any fundamental structural changes within Cn-Co. 
The collaborations and data sharing with the supply chain participants have also assisted Cn-Co in 
ensuring the seamless fulfilment of customer preferences, as highlighted by the Administration 
Supervisor. Moreover, the heightened focus on cybersecurity threats has prompted the project team 
to adopt additional contingency measures such as website traffic monitoring, ensuring a proactive 
and steady approach during system development.     
 Project Case 2, on the other hand, fulfilled the longstanding expectations of Se-Co by providing 
a transparent digital platform. The programmer proudly stated that the project implementation was 
successful and aligned with its intended objectives, as the system has thus far automated several 
administrative functions of Se-Co, including service booking, pricing, quotations, and status 
tracking, to a significant extent. Echoing the same sentiment, the Se-Co Operations Executive 
highlighted the convenience the new system has brought to Se-Co's routine operations, as it 
enhances overall visibility. 
22 
 
"Because anytime in our customer or by ourselves, they can see the operation. And it is very easy 
without any headache. Because, so, like, I mean, it is, how can I say…It is like, not driving a car, it 
is like sitting on the passenger seat of the car." 
Marking a significant shift away from paperwork and labour-intensive manual processes also aids 
the environment through waste reduction and optimising the carbon footprint in line with the EU 
Twin Transition programme. However, there remains considerable potential for further 
development of the system, which is currently ongoing. At the same time, the project owner further 
emphasised that sending personalised offers aligned with customer preferences facilitated swift 
customer adoption by valuing their preferences and feedback. 
Interviewees described this process as an ongoing journey of business process optimisation guided 
by a clear vision, with ecosystem integration planned for the later phases according to the project 
roadmap. Thus, the replicability of the system was a key consideration, as it linked Se-Co's 
workstations with others and supported the future development of an integrated ecosystem. 
Additionally, the meeting minutes highlighted that Se-Co performs competitor analyses to monitor 
market movements and supplier evaluations to understand how to adapt dynamic conditions. Se-
Co also aims to integrate its supply chain partners into the system to maintain a competitive 
advantage, resulting in a shift in Se-Co’s business model and organisational structure. Management 
envisions using this platform to connect the broader ecosystem and enhance industry collaboration. 
Highlighting the importance of engaging small-scale customers and workshops, Se-Co's project 
owner intends to make their organisation a trendsetter within the sector, aiming to bring all supply 
chain participants into the system. 
"We are going to address the small scale customers like the workshops till the large ecosystems. 
Then, in that case, the system needs to be capable of handling such requirements. So, in that case, 
even right now we are thinking about replicating that. And the architecture system also. We find it 
is enabling such interfaces." 
Interview data indicated that the digitalisation initiative to enhance transparency has reduced the 
need for direct supervision at lower levels, granting Se-Co's workstation employees greater 
autonomy. Consequently, the role of operational-level management appears to be diminishing, 
contributing to job insecurity among those in such positions. Employees preferred professional 
development facilitated by the system rather than through direct oversight by immediate 
supervisors. One workstation employee at Se-Co stated the following: 
"As employees of the company, we can follow-up the system. We can learn through the system. The 
world is moving ahead…We feel that we as a company is also moving ahead with the world. We 
believe that we can learn a lot of new things. We can also oversee the process and we can work 
without any guidance because of the system."  
Moreover, the project owner further emphasised their intention to elevate the industry, affirming 
that Se-Co is on a promising path to becoming a regional industry leader in the near future, which 
would promote traceability across the sector, eliminating resource wastage. Furthermore, 
enhancements in revenues and operational efficiency were noted through the ratio analysis of Se-
Co's financial statements. 
23 
 
Regarding the projects in the two companies, Case Project 1 supported Cn-Co in reducing labour 
costs, improving store performance, and optimising the operational cost structure, resulting in 
increased turnover efficiency, fewer errors, time savings, and ultimately, higher profits. In contrast, 
Case Project 2 enabled Se-Co to enhance customer ROI by attracting a large user base through its 
mobile application, leading to faster customer adoption, revenue improvements, time savings, and 
operational efficiency through streamlined administrative routines, as well as a reduction in human 
errors. Although Case Project 1 was completed in a relatively short time, Case Project 2 is still 
ongoing. This extended implementation timeline seems to stem from the differing approaches to 
execution. 
Despite the cases sharing similarities, they also exhibited unique differences at each stage, which 
can be fundamentally attributed to the project's changing approach. It is also important to note that 
the organisational and external contexts influenced the interaction systems of each project, 
ultimately impacting the outcomes (see Table 2). 
Table 2: Comparative Summary of Practices Across Each Stage 
 Project Case 1 Project Case 2 
 Initiated as a result of industry and competitive  Initiated due to internal failures and external competitive 
pressures. dynamics. 
 Concentration on a drastic and radical change.  The project was intended to be strongly entangled with the 
 A company with a dominant top management, organisation’s regular operations and to evolve continuously, 
hierarchical structure, clearly defined departmental thereby anticipating a gradual change. 
and individual roles, and established targets.   A participatory, feedback-driven company culture within the 
 Limited technological awareness within the company organisation that acknowledges failures and values input 
and among employees (No prior digital transformation from the grassroots level. 
strategy)  Company having a flexible reporting structure with loosely 
 Formulating a detailed plan for the future stages of defined individual roles. 
transformation.  Environmental considerations and efficiency objectives 
 Transformation constrained by political, regulatory, driving the pursuit of transformation. 
and legal boundaries.    EU GDPR compliance requirements necessitating additional stipulations and establishing system boundaries. 
24 
 
Bridging External and Internal 
Contextual Determinants 
 The project team and the company’s top management  Limited top management involvement in the project, apart 
play a dominant role by defining roles, reporting from surveillance. 
systems, performance measures, and frameworks  Collaboratively implemented measurement and control 
related to the project. systems. 
 Cross-departmental tensions stemming from the silo  Company participants not limiting themselves within the job 
nature of operations. description in the project work employees at every level 
 Top-level suggestions are acknowledged while lower- being a part of the project.  
level suggestions are taken for granted.  Project team members sharing responsibility for the project’s 
 Frameworks and performance measures, including implementations and outcomes and not having defined tasks. 
KPIs, for the project been established in alignment  Limited and less complicated performance measurement 
with the organisational hierarchy. structure. 
 The use of a detailed performance measurement  Seeking feedback from various stakeholders (360 degree) 
system structure and the reliance on framework.  Absence of a digital transformation strategy. 
 Proactive system behaviours that help become  Brainstorming sessions conducted, where normative progress 
resilient to contingencies. evaluation sessions are being held. 
  Employee acquiescence and minimal resistance to  Reactive nature against turbulences.  
adaptation.  Employee Resistance to a significant extent. 
 Customer behaviour assessment and information  Use of tools to assess user (customer) behaviour and 
sharing with supply chain partners. feedback. 
 Citizen development initiatives to groom project participants. 
 Customer-friendly features, acknowledging customer  Personalised offerings for customers after identifying their 
feedback, and a strong customer emphasis resulting in preferences.  
revenue and performance improvements.   Reduced need for immediate supervision due to higher 
 Self-sufficient features without human involvement transparency through the system and greater staff autonomy, 
causing job insecurities for lower-level staff.  resulting in job insecurity for operational-level management. 
 A drastic shift leading to optimisation of business  Shifting from manual processes to automated processes, 
processes (yet no change in the original company simultaneously optimising the carbon footprint. 
structure and job roles).   Improvements in operational and financial performances. 
 Positive financial and operational performance.   Attempts to improve system replicability to shift towards an 
 Increased likelihood of cybersecurity threats. ecosystem engaging competitors and other players of the 
 supply chain. 
 
6. DISCUSSION 
Drawing upon empirical findings, the project teams have adopted distinct digital transformation 
pathways in the two cases, along with the engagement in a combination of change management 
approaches. These transformation approaches have also been categorised into three stages, inspired 
by the multi-dimensional digital transformation framework proposed by Hanelt et al. (2021). As a 
precursor to this framework, contextual conditions—including stakeholders, regulations, policies, 
and other material and environmental determinants relevant to the two cases—have been found to 
significantly influence the identities and actions of organisations, thereby defining organisational 
and transformational boundaries (Gustafsson & Lidskog, 2017). Thus, these contextual elements 
establish the foundation for organisational change, approach, and direction (Cunha & Cunha, 
2010). The vision and objectives are contributed to by this foundation, which is established within 
the organisation, thereby influencing the change process regardless of the particular change 
approach implemented (Bogale & Debela, 2024). An additional step in the change process is 
formed by the innovation and integration mechanisms, which are influenced by the adaptability, 
25 
 
Outcomes in Motion Innovating Through Integration: Interactive Intelligence as a Driver  
flexibility, digital innovation, interaction, and strategic developments of contextual conditions 
(Hanelt et al., 2021; Lill & Wald, 2021). The effectiveness of these innovations and integration 
mechanisms heavily determines the outcomes of change, as management plans and visions are 
translated into actionable insights through ground-level employees (Somech & Drach-Zahavy, 
2011). Therefore, these 'mechanisms' are regarded as paramount in this transformation.  
This section examines the sequential connectivity among the dimensions (contextual conditions, 
mechanisms, and outcomes) of the two cases, employing transformation approaches.. 
6.1 Laying the Groundwork: Configuring Contextual Conditions for Transformation 
Readiness 
The environmental and material determinants common to both cases are encompassed by 
regulations, particularly those related to cybersecurity and personal data protection. The 
implementation of both projects has been significantly influenced by national and regional policies 
related to digital transformation. Adaptation to regulatory changes has been required for the 
operations of the two projects, necessitating acquiescence from both project teams and top 
management throughout the implementation process. The rising e-commerce trends in China’s 
healthcare sector have prompted a transition by Cn-Co to a digital shopping platform, while 
digitalisation at Se-Co has been pursued in response to advancements in digital technologies in 
Sweden. These organisational determinants have caused ‘bounded instabilities3,’ enabling 
flexibility, adaptation to rapid change, and continued progress by the companies (Weick & Quinn, 
1999). Furthermore, due to significant sustainability considerations in Sweden, a more supportive 
approach to sustainability issues has been adopted in Project Case 2, thereby aiding Se-Co in 
launching the ‘twin transition’ under the Digital Europe programme, which is seen as another key 
environmental determinant that not only binds but also encourages the organisation towards the 
initiative. 
The limited technological competence of employees, the low level of digitalisation within both 
organisations, employees' insufficient digital skills, and the absence of a prior digital 
transformation strategy indicate that digital transformation awareness was in a poor state, 
necessitating a transformation that must be started from scratch. In Project Case 1, hierarchical 
communication between top management and operational staff was structured, with well-defined 
departmental responsibilities and clearly outlined individual job roles and targets, shaped 
inherently by Cn-Co’s regular organisational structure and practices. In contrast, Project Case 2 
was characterised by an informal reporting structure, marked by low power distance and fluid 
boundaries across functions and job roles, following the inherited practices of Se-Co. These 
aspects illustrate how the organisational determinants of the two companies have shaped the 
respective projects, complemented by the episodic and continuous nature of transformation, as 
conceptualised by Weick and Quinn (1999) and Garcia-Lorenzo and Liebhart (2010).  
 
3 Localised, contained disruptions or fluctuations within an organisation that do not escalate into widespread chaos, but instead 
serve as triggers or catalysts for change (Weick & Quinn, 1999). 
26 
 
Empirically, each project has interpreted and perceived digital transformation differently, 
showcasing various organisational determinants, as well as providing the extent of the change in 
each case. This could fundamentally shape the prospective digitalisation strategy of each company, 
as a drastic transformation is anticipated by the top management of Cn-Co through Project Case 
1, in accordance with the definition provided by Gong and Ribiere (2020) and closely aligned with 
the episodic change roadmap outlined by Cunha and Cunha (2010). This roadmap signifies 
substantial alterations paired with well-defined future states, offering a clear direction (Mintzberg 
& Waters, 1985). Also, the strategic roadmap evolves through punctuated changes, termed 
'milestones', by project teams that connect the project to future goals and assist in maintaining 
strategic direction (Weick & Quinn, 1999). Additionally, planned strategies are demonstrated to 
be more effective in increasing market share and countering competition (Cunha & Cunha, 2010), 
aligning with the motives of Project Case 1. 
In contrast, Project Case 2 has held an ambitious vision to promote transparency and automate 
administration within the supply chain, forming an ecosystem while advocating for industry 
modularity, using a continuous change approach. Incremental changes have been implemented 
through employee interpretations that guide actions and provide a sense of direction, progressing 
employee awareness and categorising Project Case 2 under the continuous change roadmap 
(Weick & Quinn, 1999; Cunha & Cunha, 2010). Also, the absence of a clearly defined end goal, 
while navigating based on a strong vision, is echoed in the emergent change nature as explained 
by Weick and Quinn (1999). Additionally, significant coupling within the organisation and the 
competitive context is experienced by this project, as a substantial structural change in Se-Co is 
intended through its connection with supply chain partners as a system, further manifesting its 
emergent nature (Cunha & Cunha, 2010). The implementation process is being conducted at a 
more measured pace, as the team exercises caution to ensure that the new digital platform would 
not disrupt Se-Co's operations but would instead facilitate improvisation and learning from the 
existing system (Weick & Quinn, 1999), which is also likely to cause structural changes at Se-Co. 
6.2 From Context to Impact: Innovation and Integration as Drivers of Transformation 
The dominant role of top management, supported by the organisational hierarchy of Project Case 
1, in contrast with the collaborative nature of Project Case 2, is served as a visible indicator that 
highlights the difference between the two approaches to change in terms of both innovation and 
integration perspectives within the transformation mechanism. Notable inter-departmental 
tensions caused by hierarchies and defined role structures in Project Case 1 necessitated controls 
that promoted cross-functional coherence (Zhang, 2013). Fluid departmental boundaries and the 
interactive, emergent nature of Project Case 2 enabled managers to learn from customers, 
competitors, employees, and other stakeholders, with their interpretations gathered to adapt and 
set a balanced direction (Weick & Quinn, 1999; Baptista et al., 2020). It was evident that both 
approaches helped to mobilise and accelerate the transformation and establish innovation 
capability within their unique change strategy. 
27 
 
Quarterly reviews conducted by the top management of Project Case 1 with department heads 
assessed progress, thereby limiting project involvement to a small group of individuals within Cn-
Co. Despite the existence of an employee feedback system, it was rarely utilised, except in crucial 
instances during strategy development, which demonstrated top management's dominance (Rivera 
et al., 2021). However, the high acceptance of top management's ideas was significant, as 
evidenced by the CEO's suggestion to establish a virtual store. Yet, organisational boundaries were 
opened to external supply chain partners through data sharing. The digitalisation strategy was 
effectively implemented through this approach by ensuring alignment among Cn-Co's employees 
via training and upskilling, enhancing technological feasibility, and fostering human-technology 
interaction in line with the original strategy. Resistance was mitigated through demonisation 
(Thomas & Hardy, 2011), reflecting the domination of top management. This repertoire created a 
distinct route for planned episodic change, following Weick and Quinn (1999). 
On the contrary, the barrier of a rigid organisational structure is removed by the change roadmap 
of Project Case 2, as such structures seldom support the coordination network or aid in 
understanding organisational and competitive dynamics, which are essential for fostering an 
innovation climate (Weick & Quinn, 1999). The evaluation and monitoring processes have been 
developed through participatory and negotiated methods, which promote consensus and mitigate 
resistance by celebrating dissent within this participatory culture (Thomas & Hardy, 2011). Se-Co 
held its quarterly review, which included representation from a wide range of organisational 
participants. The project team has engaged the project's resistors through persuasion and 
explanations of the transformation's advantages, ensuring that all stakeholders feel acknowledged. 
Simultaneously, an active 360-degree feedback system ensures that all employees are heard, 
thereby subsidising the pursuit of 'Citizen Development' (Muhammad et al., 2025) and outlining 
Se-Co's digital business strategy. Brainstorming sessions are facilitated to address urgent issues 
that align with the reactive implementation approach characteristic of this continuous change 
roadmap (Orlikowski & Hofman, 1997), as the interviewees advocate. 
Furthermore, the ongoing transformation promotes transparency in processes, enhancing 
interaction between internal structures and external customers and fostering the creation of new 
ideas through social processes (Weick & Quinn, 1999; Newell, 2011). Notably, limited 
involvement from top management is observed during the transformation of Project Case 2, while 
significant roles are played by operating staff, such as workstation employees. Given the absence 
of a fixed digital transformation strategy at Se-Co, this inclusive approach is considered the most 
suitable for the situation (Orlikowski & Hofman, 1997). 
In both cases, advanced analytical tools were used, drawing on mainstream approaches (such as 
WeChat Groups), to identify changing customer preferences. These helped provide more user-
friendly, customisable solutions through tracking algorithms while improving organisations' digital 
capabilities and human-computer interactions. In Project Case 1, Mixpanel was considered 
relatively advanced and primarily comprehensible to specialists, as only the project team at Cn-Co 
28 
 
was required to know its application. In contrast, Project Case 2 utilised the notably more user-
friendly Google Analytics, which enhanced participant collaboration and teamwork. A greater 
degree of technological feasibility was contributed by this approach, owing to the user-friendly 
nature perceived by the participants (Orlikowski & Hofman, 1997), and digital harmonisation  was 
thereby facilitated (Hanelt et al., 2021). 
The participation of a limited group of skilled individuals is acknowledged by both the staff and 
management of Cn-Co, with the directives of the IT Teams being readily accepted. This is assumed 
to be the reason for the presence of technocratic elements, such as sophisticated frameworks (e.g., 
extended balanced scorecard), within the project team at Cn-Co. A proactive implementation 
strategy that encourages a positive outlook on uncertainties is chosen, which aids Project Case 1 
in achieving a quicker transformation within the organisation through improved planning during 
turbulent times (Sia & Ho, 1997). At Cn-Co, the measurement and KPI systems are designed to be 
relatively complex and structured within a hierarchical framework. Each main KPI is supported 
by subordinate indicators aligned with the organisational hierarchy. Precise definitions of 
individual scopes and job roles, as demonstrated at Cn-Co, are considered crucial for achieving 
transformation goals (Valentine, 2017). Additionally, to promote the proactive nature of Project 
Case 1, anticipatory features supporting adaptive and resilient operations were deployed, such as 
ethical hackers, risk mapping, and similar measures. 
Conversely, a relatively unsophisticated system is employed in Project Case 2. The limited use of 
frameworks is promoted to reduce dependence on a technocratic approach and a formalised 
governance system in the transformation. The project team employs a reactive change approach, 
and the slower pace of transformation is justified from a long-term perspective (Sverke et al., 
2008). Meanwhile, the continuous change nature of the project is acknowledged through the 
incorporation of insights from various stakeholders (Weick & Quinn, 1999). The KPIs were created 
through a collaborative negotiation process that encouraged mutual consensus and agreement. The 
aforementioned facts are used to describe the continuous change approach in Project Case 2 as a 
purposeful process by which order is imposed on emerging variations through active engagement 
as they develop (Orlikowski & Hofman, 1997).  
As a result, the innovation and integration strategies of each case project were advanced through 
distinct approaches, thereby ensuring the effective progression of their respective transformation 
processes. 
6.3 From Performance to Impact: Translating Efforts into Meaningful Outcomes 
Evidence has indicated that changes in organisational setup, economic benefits through improved 
performance, and the generation of new value, alongside other unexpected outcomes, have resulted 
in both projects attesting Hanelt et al.'s (2021) multi-dimensional framework. 
A significant change in the organisational setup of both cases was evidenced through the empirical 
data. The change roadmaps by Weick and Quinn (1999) were manifested as the transformation was 
29 
 
identified by Cn-Co as a project within the organisation, which was demonstrated by the absence 
of any significant structural changes, such as unaltered hierarchies and reporting systems resulting 
from the project. Simultaneously, Se-Co, as an organisation, was observed to have evolved within 
the project, demonstrating substantial changes in various aspects, including a shift in its business 
model through enhanced connectivity with supply chain partners, improved internal reporting 
mechanisms, and expanded job roles. In other words, from a theoretical viewpoint, it can be argued 
that Project Case 2 was highly coupled with the company, considering the structural changes, 
which were indicative of the continuous nature of change involving a relatively large number of 
internal constituents, with significant changes being made at Se-Co (Orlikowski & Hofman, 1997). 
Simultaneously, Project Case 1 was observed to have caused minimal structural changes, with the 
project being taken as part of Cn-Co, thereby indicating its planned nature of change (Cunha & 
Cunha, 2010). 
Customer-centric measures were ensured in both cases to provide a digitalised customer 
experience through established customisation practices. Customer behaviour was analysed through 
algorithms, customer feedback, and the utilisation of customer-centric tools, enabling 
organisations to identify customer preferences. Each customer was uniquely identified and 
provided with offerings aligned with their preferences, enabling data-driven digital processes 
alongside an altered business model focused on a digitalised customer experience. The economies 
of both organisations benefited through enhanced revenues and operational efficiency. Efforts to 
enhance customer ROI by attracting a large user base through the mobile application resulted in a 
significant shift in the organisational structure in Se-Co. Additionally, time savings, error 
reduction, and routine optimisation were achieved through the systems by improving firm 
performance. Furthermore, environmental factors such as reducing energy use and optimising 
resource efficiency were emphasised in Project Case 2, which enhanced Se-Co's performance. 
Active collaboration with external supply chain partners is engaged in both projects to ensure a 
smooth and responsive supply that is aligned with customer demand and to deepen the 
understanding of market dynamics. Economic benefits are yielded for Cn-Co through enhanced 
market performance as a result of this collaboration. The ambitious vision of replicating this model 
across the supply chain network is supported at Se-Co through collaboration with supply chain 
partners as well as with ecosystem participants. A transformation of the organisational structure is 
aimed for by Se-Co by fostering a connected ecosystem among its partners. In Project Case 2, a 
strategic intention is exhibited to evolve toward a more ecosystem-oriented approach over the long 
term, with a gradual expansion of contextual reach. A broader transition within the industry is 
reflected in the grand vision and growth trajectory of Project Case 2, which Hanelt et al. (2021) 
describe as a ‘systemic shift’—an approach that seeks alignment between internal transformations 
and broader industry developments. Furthermore, both projects exhibit a strong intra-
organisational focus, emphasising a move towards a ‘compartmentalised adaptation’ (Hanelt et al., 
2021). Despite Project Case 2 showcasing a direction of expansion both contextually and intra-
organisationally—which Hanelt et al. (2021) refer to as ‘holistic co-evolution’—Project Case 1 
30 
 
does not seem to demonstrate any intent to expand contextually by integrating industry or supply 
chain partners. This reveals a glimpse of the short-term orientation and sealed nature of episodic 
changes, in contrast to the long-term orientation associated with continuous changes, as advocated 
by Weick and Quinn (1999). 
Additionally, several spillover effects were observed, particularly in job role obsolescence. At Cn-
Co, the implementation of automated self-service systems has significantly reduced the need for 
manual intervention, placing certain operational staff roles at risk of obsolescence. Similarly, at 
Se-Co, increased transparency and digital integration have diminished the necessity for direct 
supervision. This shift has fostered greater autonomy among operational-level staff and 
encouraged professional development. However, the demand for traditional operational-level 
managerial roles has been reduced, potentially rendering them obsolete. 
Although two distinct change roadmaps were employed in both cases of transformation, as noted 
by Weick and Quinn (1999), it is evident that an episodic transformation approach was adopted in 
Project Case 1, whereas a continuous approach was implemented in Project Case 2. Significant 
success was achieved in both implementations; a faster transformation was undergone by Project 
Case 1 within Cn-Co compared to Project Case 2 at Se-Co. It can be argued, echoing Valentine 
(2017), that the loosely defined job roles and departmental boundaries, overshadowed by the broad 
vision at Se-Co, in contrast to the specific prescriptions of tasks, strategies, and job roles at Cn-
Co, influenced this variation in transformation durations. Furthermore, this variation can be 
attributed to the rapid shift in episodic changes over continuous changes, as argued by Weick and 
Quinn (1999). 
Thus, in alignment with the multi-dimensional framework of digital transformation proposed by 
Hanelt et al. (2021), the contextual conditions, namely, material, organisational, and environmental 
determinants, have been observed to influence the mechanisms of innovation and integration 
within the transformation process. These mechanisms, in turn, shape the eventual outcomes, which 
may be manifested as changes in organisational structure, economic performance, or broader 
spillover effects. This sequence has been adequately followed in both cases despite differences in 
their transformation approaches. Orlikowski and Hofman (1997) argue that traditional, episodic 
models of technology-driven transformations are oversimplified and no longer suit today's fast-
paced and complex environments. Instead, an improvisational approach is advocated, wherein 
change is viewed as ongoing, flexible, and inherently unpredictable. Orlikowski and Hofman 
(1997) further suggested that organisations should adopt loosely structured plans, anticipate 
potential surprises, and continuously adapt based on their experiences. 
In contrast to the perspective of Orlikowski and Hofman (1997), this study demonstrates that 
episodic change remains a viable approach to digital transformation. When the appropriate 
configuration of elements is established, episodic change can be considered equally effective as 
continuous change. Although both approaches have common prerequisites—such as employee and 
management adaptability, intra-organisational expansion, external collaboration, and customer 
31 
 
centricity, as well as resource availability—there are distinct practices (mechanisms) that 
contribute to the success of each type of transformation. For episodic transformations, success is 
supported by the empowered top management—equipped with resources and knowledge—playing 
a dominant role, a well-defined organisational structure aligned with prescribed job roles, targets, 
functional scopes, and a corresponding performance measurement system, technocratic and 
proactive frameworks, and a digital strategy integrated into a comprehensive transformation plan. 
Conversely, continuous transformation is facilitated under conditions where the process is driven 
by empowered and motivated employees (or participants) acting as change leaders, with minimal 
intervention from top management. A flexible organisational structure, performance measures 
mutually agreed upon by participants, and a vision-driven, reactive approach are recognised as key 
to the success of continuous digital transformation. In summary, the effectiveness of both 
continuous and episodic change approaches is maintained when supported by a suitable repertoire 
of organisational elements and practices, opposing the argument of Orlikowski and Hofman 
(1997), who invalidated the use of the episodic change approach in fast-paced, complex business 
environments. 
 
7. CONCLUSION 
This study examines how the management of digital transformation projects is conducted by 
analysing two such projects, utilising the multi-dimensional framework of digital transformation 
by Hanelt et al. (2021) from a pragmatic perspective. It advocates a nuanced understanding of 
episodic and continuous change approaches, aligning with distinctions highlighted in change 
management literature (Cunha & Cunha, 2010; Weick & Quinn, 1999), and affirms the 
applicability of Hanelt et al. (2021)’s multi-dimensional framework of digital transformation, 
regardless of the change approach deployed. In contrast to the viewpoint of Orlikowski and 
Hoffman (1997), the ongoing relevance of the episodic change approach is regarded as equal to 
that of the continuous change approach in a rapidly changing business context.  
Furthermore, a set of common and distinct prerequisites and practices for both change approaches 
is proposed. In general, the necessity of employee and management adaptability, intra-
organisational expansion, external collaboration, and customer centricity, as well as resource 
availability seen as common prerequisites, regardless of the change approach used. The authors 
strongly argue that for successful transformation through the episodic change approach, 
empowered top management (equipped with resources and knowledge) must play a dominant role, 
supported by a well-defined organisational structure aligned with specified job roles, targets, and 
functional scopes, along with a corresponding performance measurement system that is attuned to 
the structure, technocratic and proactive frameworks, and a digital strategy integrated into a 
comprehensive transformation plan. Moreover, empowered employees (or participants), minimal 
intervention from top management, a flexible organisational structure, mutually agreed 
32 
 
performance measurement systems, and a compelling vision are recognised as key elements for 
successful transformations through continuous change approaches. 
Significant implications for change management practitioners and management consultants 
working on digital transformation projects are presented by the insights derived from the study. It 
is emphasised that the change strategy varies according to the nature of the transformation, 
rejecting the idea of a ‘one-size-fits-all’ approach. Furthermore, the importance of diagnosing the 
nature of digital transformation before aligning the change approach is highlighted.  Additionally, 
careful selection of structural levers (reinforcing a clearly defined structure or fostering agility) is 
reminded; otherwise, mixed or unclear structures may cause friction. The role of leadership is also 
highlighted, where training leaders to lead by enabling rather than directing is advocated in 
continuous changes, while driving with clarity and authority is required in episodic changes. Thus, 
the flexibility of leadership style is to be taken into consideration during transformations. 
Although several important findings and implications have been revealed by this study, its 
limitations should be acknowledged. These limitations arise from the unique contexts of the study, 
as the focus has been placed on digital transformation projects in Sweden and China, as well as on 
national cultural influences, which may challenge the generalisation of the findings. Therefore, the 
findings of this study should be theoretically generalised with contextual consideration (Yin, 
2017). Future studies should explore the comparative effectiveness of episodic versus continuous 
change approaches through a longitudinal case study design, allowing for empirical comparison 
of transformation success in projects that primarily use either change mode. Additionally, 
analysing how national culture influences the preference for or effectiveness of change approaches, 
through integrating cultural frameworks [e.g., Hofstede (1984)] with digital change studies, would 
significantly contribute to this area of research. Similarly, future studies may consider expanding 
the findings by incorporating additional theoretical bases and data collection methods
33 
 
8. ACKNOWLEDGMENT 
We would like to express our gratitude to our supervisor, Fredrik Lavén, for his guidance, insightful 
feedback, and patience throughout this research journey. His expertise and encouragement were 
instrumental in shaping and finalising this thesis.   
We are also sincerely thankful to the companies involved in this study and all our interviewees for 
sparing their time and sharing their insights with us, which are key to our study. Thank you, Vertika, 
Alice, Carolyn, Echo, and David, for your assistance in reaching the case organisations.   
To our families and friends, thank you for your tolerance and support throughout this process. Your 
unwavering belief in us, during moments of light and darkness, provided us with the strength to 
persevere.   
Finally, we acknowledge one another for our inspiration and commitment to this research. Our 
mutual efforts were essential in making this journey valuable and joyful. 
34 
 
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10. ANNEXURES 
Annexure 1: List of Documents Used in the Documentary Analysis 
Case Document Description Internal / External 
Contract with case client and its appendix 
Annual report 2024 
Corporate structure and list of employees 
Project report for quarterly meeting Q4/2024 
Draft project report for quarterly meeting Q1/2025 
Group chat history of the project team Internal   
Project Library of failed cases 
Case 1 Project timeline and milestones 
Meeting minutes of the project team in Q4 2024 
User research report 
Employee Code of Conduct and Protocols 
A Guide to Digital Transformation for SMEs website 
Policies of Chengdu High-tech Park to support enterprises' digital External 
transformation website 
Financial statements and annual reports 
Admin access to the application for 3 hours 
Screenshots of the application process 
Contracts between the client and IT consultants Internal   
Project 
Case 2 Manual data entry systems, templates 
Employee payroll and company structure 
Progress review meeting minutes 
EU Reports (about Cyber security policies, Cyber security blueprint) 
External 
Swedish Government Reports website 
40 
 
Annexure 2 – Inductive Theme Derivation 
Level 1 Codes Level 2 Codes Themes 
Business Process Reshaping 
Automation and Efficiency Digital Transformation 
Reconstruction of the Ecosystem Interpretation and 
Solution that breaks barriers Strategic Awareness 
Strong Vision to Connect the Ecosystem 
Legislation Consideration 
Government Regulations 
Regulations on Data Privacy Legal & Regulatory Pressures 
Security Legislation Harmonising Mindsets and 
Geo-Political Issues Context: Bridging External Contexts and Organisational 
Technological Changes Determinants 
Demand Change as a Challenge 
Varying Customer Needs  Environmental Challenges 
Network Security Concern & Risks 
Higher Security Threats 
Lack of Technical Knowledge 
Bigbang Improvements 
Taking Major Leaps Execution Readiness & 
Change Approaches 
Continous evolving 
AI, Big Data Usage 
Customer Data Mining  Digital Capability & Technology Deployment 
Intelligence Maintenance System 
Framework Use in Evaluations 
Frameworks making technocrats Frameworks & Process 
Structured Inter-Departmental Reporting Structuring 
Response on changed evaluation criteria 
Workshops that Improve Knowledge Innovating Through Integration: 
Cross-Departmental Coordination Interactive Intelligence as a Driver of Organisational 
Use of External Professionals Transformation 
Audits/3rd Party Consultants 
Constant Dialogue Learning & Coordination 
Regular Communication Enablers 
Open to Criticism 
Strong Employee Focus 
Resistances 
Everyone on Board 
Internal Business Efficiency Organizational Outcomes 
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Employee Productivity 
Automation and process streamlining 
Transparency and Communication Improvements 
Higher Accuracy 
Impact on Financials 
Financial KPIs 
Financial, Market, Customer KPIs 
Cost Reduction Economic & Performance 
Competitive Advantage Results 
Waste Reduction 
Increased Revenue 
Avoiding Indicator Obsolescence 
Outcomes in Motion: 
Customer Centricity Organisational Realignment, 
Strong Customer Focus Economic Uplift, and Impact 
Beyond Borders 
Priority on Customer 
Customer Feedback is Priority 
Faster Reaction on Feedbacks Customer-Centric Outcomes 
Improving Customer Value 
Customer Adaptation 
Transparency and Convenience 
Market and Customer Focus 
Triple Bottom Line Consideration 
Sustainability Concern 
Ultimate Goal is to maintain a seamless system Sustainability & Value Creation 
Value Chain Streamlining 
Transparency of the Value Chain 
 
42