Challenges with Organizing for Digital Transformation in International Manufacturing Networks

Introduction: The topic of digital transformation plays an increasingly important role and is nowadays inevitable for firms to stay competitive. However, the effects of digital transformation are described as scattered and how to organize for digital transformation in the context of international manufacturing networks has not been investigated previously. This study sets out to explore the challenges that companies face when organizing for digital transformation. The following research questions were stated: RQ1: How do IMNs currently organize for digital transformation? RQ2: What challenges are IMNs facing when organizing for digital transformation? Method: A systematic literature review was combined with a multiple case study to reach the research objectives. Four case companies working with digital transformation in their International Manufacturing Networks and participating in the research project KODIT were part of the study. By this kind of study research study, the phenomenon of interest can be both examined and described. Thereby, a comprehensive context allows to solidify existing knowledge and create new knowledge in order to answer the research questions. Frame of References: A literature review was performed to introduce the concept of International Manufacturing Networks and to create an understanding of digital transformation and its related terms. Organizational change, maturity models and success factors, different approaches, roadmaps, and frameworks, were investigated to provide an insight into current ways of organizing for digital transformation. Furthermore, different challenges related to digital transformation were described. Empirical Findings: The empirical findings provide an overview of how the studied case companies work with digital transformation in their manufacturing networks. Each case company has a different understanding of digital transformation and its way of working. Whereby lead factories, cooperation, and collaboration play an important role. At the same time, the case companies face different challenges when working with digital transformation within an International Manufacturing Network. Analysis and Discussion: Organizing for digital transformation includes various aspects such as structural changes, approaches, success factors, maturity models, roadmaps, and frameworks. Whereby, digital transformation can only be successful when applying a holistic perspective. When undergoing the digital transformation journey numerous challenges have to be faced. By analyzing those challenges, it becomes clear that the introduction of a network perspective increases the complexity of digital transformation. Conclusion and Recommendations: By combining existing literature with a case study, it can be shown how companies currently organize for digital transformation and which aspects are important to consider. Furthermore, a comprehensive overview of potential challenges International Manufacturing Networks can face when working with digital transformation is provided. Hence, this thesis provides a means to develop a holistic understanding of organizing for digital transformation in International Manufacturing Networks. A complete case study is required in the future to validate the findings of this thesis.