Whilst Information Systems research has focused on how products, processes, and organizations have to be transformed in the digital age, we know little about how and why the organizational culture of firms needs to be 'digitalized'. Drawing on the organizational culture model by Edgar Schein, we analyze data from eleven cases across various industries to identify the facets of digitalizing firms' organizational cultures. Specifically, we explore their Artifacts, Espoused Beliefs and Values, and Underlying Assumptions. Our study contributes by delineating a 'digital organizational culture' that underpins the motivation for firms to digitalize.

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Digitalization requires firms to concentrate necessary capabilities around the development of digital innovation. Particularly, firms are experimenting with setting up digital innovation labs (DILs), which present internal but separate organizational units dedicated to the development of digital innovation. However, there is limited knowledge on how DILs develop digital innovation. To understand how DILs enable ambidexterity and, thus, develop digital innovation, we conducted an exploratory single-case study comprising an organizational as well as a team level analysis with 20 interviews to provide deep insights into the organizational design of a DIL. We uncover the organizational design features of DILs and show how they enable ambidexterity. These findings allow us to explain how DILs develop digital innovation. Furthermore, we find DILs to enable a new way to achieve ambidexterity. We discuss our findings in light of the ambidexterity and digital innovation literature.

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