Conceptualizing obsolescence and digital transformation

This study aims to shed light on the notion of technological obsolescence and explore its links with digital transformation to achieve adaptability and resilience. We undertook an interpretive longitudinal study between 2009 and 2020, capturing the digital transformation journey of an award-winning, UK-based high-tech SME that is designing and manufacturing high-end home entertainment systems including digital streaming products, music players, and speakers. As a contribution to literature, we conceptualize and define the link between technological obsolescence and the digital transformation process. We offer a conceptual framework to explain the interplay of the adaptive capabilities through the concepts of empirical sensitivities and habitus in the context of digital transformation in SMEs. We suggest that SME managers should pay attention to developing non-cognitive dynamic capabilities to effectively respond to digitalization trends by orienting their employees toward careful management of technology obsolescence in a manner unique to the firm’s history and experiences