Road to digital manufacturing – a longitudinal case-based analysis

Abstract

PurposeThe authors’ main objective is to examine the resource alteration underlying the digital manufacturing transformation. The authors rely on the adaptation aspect of dynamic capabilities (DC) theory and their analysis shows how and why a factory adapts its resources and capabilities during digital transformation.Design/methodology/approachTo grasp the change, the authors apply the longitudinal case study method within a revelatory case setting. The digital transformation is detailed from the perspective of a subsidiary that has played a key role in the division's digital transformation.FindingsAnalysing the revealed four stages of the transformation through the lenses of the DC components of adaptation (sensing capability, absorptive capacity, integrative capability, relational capability), this study suggests a sequence with unbalanced characteristics. Each stage starts with sensing capability, each component appears during each stage and each stage is dominated by a different component. Relying on the path dependency concept, the authors also present that the interplay between lean as an old resource stock and digital manufacturing as a new resource stock is rather a necessity, especially at the beginning of the transformation (at a corporation that pursues lean for years).Practical implicationsDigital strategy development is rather an intermediate element of the transformation, since committed personnel (or maybe their network) start bottom-up and coordinate initiatives as they sense the opportunities in the environment. Top managers should rely on their accumulated knowledge and involve them into the transfer coalition in the top-down phase of digitalization. The authors’ case also underlines that starting to experiment with novel technologies requires a solid (and usually expensive) technological and human basis. Finally, process improvement focussed developments at a high-performing factory might be just enough to deal with ever-demanding customer expectations.Originality/valueThis study is among the firsts in operations management that relies on the DC theory to follow up the digital transformation of a factory. A further valuable contribution is that the adaptation process is examined in a longitudinal case study.

The interplay between digital manufacturing and dynamic capabilities: an empirical examination of direct and indirect effects on firm performance

“…The application of artificial intelligence, machine learning, big data analytics and other next-generation digital technologies have begun to transform the traditional production methods for many goods, with profound implications for the ways products are designed, produced and serviced around the globe, as well as how businesses are being managed (Björkdahl, 2020; Demeter et al , 2021). Digital ecosystems created by the integration of cyber-physical systems into manufacturing operations, based on Industry 4.0 enabling technologies, can create the conditions for better performance in terms of productivity gains, flexibility, reductions of energy and material consumption as well as their cost, increase in business competitiveness and improvements in working conditions (Chiarvesio and Romanello, 2018; Dalenogare et al , 2018; Ghobakhloo, 2018; Pereira and Romero, 2017; Savastano et al , 2019).…”

Unraveling the capabilities that enable digital transformation: A data-driven methodology and the case of artificial intelligence

“…Here, user experience is usually the key evaluation indicator [80]. The focus in digital capabilities #6 is on the capabilities required by organizations and individuals in the DT process, which are divided into digital [81,82], dynamic [83][84][85][86], and their combination [31,87]. A few studies have attempted to shed light on the connotation of some capabilities.…”

“…Dynamic capabilities Sensing, seizing, transforming [83,84,86,121,122] Digital sensing, digital seizing, digital transforming [9] Absorptive capacity [83] Integrative capabilities [83,104,123] Relational capabilities [83,123,124] Innovative capability [100,104] Dynamic managerial capabilities [125,126] Technological capabilities Digital capabilities [31,72,81,82,127] Dynamic IT capabilities [25] Big data capabilities [128] Information analytics [129] Relational and information processing capability [130] Platform capabilities Platform capability [25,85,124] Platform utilization capabilities [125,126] Others Business process management capabilities [87,131] Project capabilities [132] Organizational learning capabilities [133] Customer service capabilities [134] R&D capabilities [135] Production capabilities [131,135] Knowledge management [136] Top management understanding [81,136,…”

How to Make Augmented Reality a Tool for Railway Maintenance Operations: Operator 4.0 Perspective

“…Other research focused on motivating operators to take active decisions when transforming IT function profiles in healthcare organizations using one single case study [42]. More recent work examined the process of resource alteration underlying the digital manufacturing journey using a single case [43].…”