Abstract

The article examines the management of strategic changes as a purposeful influence on the enterprise, which is a platform of strategic changes, to determine its position regarding strategic goals and conditions formed under the influence of a changing operating environment. The theoretical and methodological basis of the study is the provisions of the change management theory. The main study method is cognitive modeling aimed at the formalization of decision-making processes in the area of strategic change management. For the study, open access corporate reports of the Volkswagen Group were used. A cognitive model of the company’s activity was built taking into account strategic changes to ensure strategic changes and study the mutual influence of concepts in the process of implementing changes. An evaluation of the results of modeling the influence of the indicators of the cognitive model on the factors of strategic change management was carried out. As a conclusion, it allows you to make a forecast of concepts. Thus, thanks to the introduction of strategic changes in the open innovation system, the indicator “Financing and other resource provision” will reach the desired value (an increase of 177.5 million euros) in 2 years.

Introduction

The functioning of the enterprise in modern conditions takes place as a process of continuous implementation of changes and maximization of beneficial consequences and efficiency from their implementation. That is why enterprise management is, in essence, management of changes of various kinds, levels, nature, scale, etc. The management system of the enterprise in such conditions requires the development of scientific foundations for ensuring change management in all areas, and especially in the field of strategic management, which is designed to ensure the long-term profitability of the enterprise and its competitiveness through the effective distribution of available resources and the implementation of the mission (Gassmann et al., 2010). The primary objectives are the definition and scientific substantiation of the theoretical-methodical foundations of the implementation of strategic changes, the content of strategic change management processes and their classification to specify the content of the process of implementing strategic changes in the conditions of specific enterprises (Lichtenthaler, 2011).

The implementation of the strategy of a company is impossible without the implementation of strategic changes, which form the basis of its implementation and hence achieving strategic goals in market conditions. In such conditions, the management of strategic changes has a close relationship with all levels of strategic management of the enterprise (from corporate to operational ones), concerns all links of its activity and functional areas, creating the effect of symbiosis of management systems, the existence of which is subordinated to the goals and mission of the enterprise (Lee et al., 2010).

Conclusions

It was established that business structures that carry out production and economic activities, actively using open innovations that affect strategic changes, are weakly structured systems. First of all, this is due to the fact that the system of factors and the relationships between them is not defined with sufficient completeness. Therefore, to achieve the set purpose, it is advisable to use cognitive analysis, which is designed specifically for the study of weakly structured systems.

During building the cognitive model, the main factors affecting companies in the policy of introducing strategic changes were determined. Provided that management influences are applied, the specified economic indicators can be achieved in a much shorter period of time (all results are achieved in 4 years) If no management influences are applied, the results are not achieved even within 5 years). Therefore, it is advisable to use cognitive modeling to increase the validity of management decisions when developing a scenario for achieving the desired state of the business structure.

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Abstract

In recent years, the world’s population living in cities has been rapidly increasing. Cities are transforming their infrastructure in a smarter and more efficient way so that sustainable development forms part of their long-term strategy. However, this transformation does not always result in expected benefits due to a variety of factors such as an absence of social acceptance, a lack of holistic design and the development of unilateral interventions. An analysis of the scientific literature related to the evaluation of the impact of smart city actions revealed a gap in the holistic methods for their assessment. To this end, an accurate evaluation of implemented smart solutions focusing on the energy domain is necessary in order to assess the expected and realized impact of each solution. This paper proposes a seven-step methodology for assessing the impact of smart city interventions and presents a use case for the city of Espoo. A number of major findings were the outcome of our research and development work, such as the need for a thorough analysis of the long-term vision of the city, a combined top-down and bottom-up approach and the ongoing cooperation between all stakeholders involved in urban planning and transformation, in which necessary Key Performance Indicators (KPIs) are defined.

1. Introduction

1.1. The Necessity of Impact Assessment
According to the United Nations [1] 68% of the world’s population is projected to live in urban areas by the year 2050; cities, therefore, are anticipated to face new challenges in sustainably integrating further populace, such as a lack of appropriate infrastructure for sustainable energy and automated systems, applications and commercial arrangements, digital security, network connectivity and data capacity [2]. Cities will be required to transform their infrastructures in a smarter, more efficient and resilient way so that sustainable development forms part of their long-term strategy and a better quality of life is assured to their citizens. The concept of the smart city is multidimensional [3], with the aim of increasing urban sustainability and quality of life while pursuing economic development among its citizens [4]. Additionally, sustainability has gained popularity among scholars, environmental policy makers and government agencies [5]. However, a smart city is not just about creating technically viable urban areas and stimulating economic growth; it requires a multifaceted and multidimensional approach that promotes a structural transformation in the urban ecosystem, directing the development of cities towards their “smartness” in areas such as economy, governance, social, environment, mobility and ICT [6].

Abstract

     The rapid development of information and communication technology (ICT) has resulted in several improvements in diverse aspects of the organizational structures, including the introduction of virtual teams (VTs). Organizations rely on VTs since they bring a lot of benefits, such as the enhancement of organizational performance. However, effective VTs cannot exist without the proper implementation of decision-making processes. There is a lack of scientific research that attempts to understand the factors affecting decision-making processes in VTs. Studies in this area have only been conducted in the United States and Europe. However, such research has not been conducted in the Middle East, where specific scientific solutions are still required to improve the performance of VTs. Therefore, this study is conducted in the Middle East to gain scientific knowledge on this region’s specificity. Thus, the objective of this study is to identify the factors that affect VT decision-making processes. An online survey was used to collect data (Google forms) from companies in the IT industry in UAE, which are engaged in VTs. A literature review, survey methods, and structural equation modeling were used. The results showed that culture intelligence (CQ), transformational leadership (TL), and task conflict have a positive effect on VT decision-making processes, and relationship conflict has a negative impact on VT decision-making processes, which provides the management teams with a guideline on what to concentrate on in the measuring and enhancement of the effectiveness of VT decision making.

Introduction

     The most important changes that face organizations are caused by information and communication technology (ICT) (Al Majzoub and Davidaviˇciene˙ 2018). ICT has caused the formation of a new type of team work called virtual teams. The use of virtual teams is important for organizations because they allow team members to communicate, despite distance and time constraints. They allow organizations to hire the most talented people regardless of the location, which increases the efficiency of the team (Schmidtke and Cummings 2017). VTs are defined as “groups of people who are geographically and/or organizationally dispersed and who rely on collaboration technologies to carry out tasks” (Lowry et al. 2015). VTs bring advantages to organizations, such as the presence of diverse staff, innovation allocation of resources, flexible organizational structure, enhanced decision making and an increase in organizational performance (Bhat et al. 2017). Even though VTs provide benefits to the organization, they impose challenges to perform effectively. One of the essential factors that affects VT performance is decision-making processes (Wei et al. 2017). To date, there exists a case of scarcity in academic research in the field of decisionmaking processes in virtual teams (Davidaviciene et al. 2020; Drouin and Bourgault 2013; Tan 2019; Zakaria 2017). Most of the research is conducted on university students instead of actual organizational virtual teams (O’Neill et al. 2016; Organ and Flaherty 2018; Paul and Dennis 2018). From the literature review, it could be concluded that there is a lack of research that examines the effect of these three factors—conflict, culture and leadership—on the decision-making process in UAE.

Conclusions

     VT decision making is an important key indicator of VT performance, and hence organizational performance. Organizations must understand and measure the key factors that affect decision making and team performance in an organization and work to enhance it to be able to obtain its market share and be competitive. This article aimed to identify the following factors—CQ, TL, and task and relationship conflict—that affect VT decisionmaking processes. Based on the empirical research conducted, it can be concluded that CQ, TL, and task and relationship conflict are important factors to consider when measuring VT decisions, as the results show that culture intelligence (CQ), transformational leadership (TL), and task conflict are positively correlated with decision-making processes, and relationship conflict is negatively correlated with decision-making processes in VTs. This article provides a guideline for management in an organization to measure VT decision making. For example, when measuring decision making in VT, management should concentrate on how to enhance the following factors—cultural intelligence, transformational leadership, and task conflict—and how to eliminate or reduce relationship conflict factors between members in VTs. Measuring and controlling these factors will help an organization to enhance its VT decisions, which in turn will improve VT performance. In addition, this study proposes a framework for future studies to add factors to these models and create new models, not only to measure but also to implement strategies that can be used to enhance the VT decision-making process and hence improve VT performance. As all research does, this study has limitations. The first limitation of this study is the use of four factors affecting decision-making processes. However, there are other factors that affect decision making that were not included in this study, such as trust, ICT, etc. Second, the study was conducted among organizations in the IT industry. Future studies should include other industries. Third, this study was conducted in the U.A.E. Future studies should include countries in the Middle East in comparison with other regions. Future studies also should include all the mentioned limitations

Abstract

     This paper studies the relationships among the use of digital communication technologies, innovation performance and productivity, using an extended version of the Crepon-Duguet-Mairesse (1998) model, for a sample of micro and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relationships sequentially, firstly estimating the relationship between digitalization and innovation, and secondly the relationship between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and of a business mobile phone for surfing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive effect on labor productivity. The findings suggest that public programs aimed at fostering inclusive digitalization must consider the types of digital technologies that are most accessible and beneficial to small firms, including those operating informally.

Introduction

     Digitalization is transforming economies across the world and altering the way firms develop and market goods and services. It holds many promises to spur innovation, generate efficiencies, and improve economic prospects (Dahlman et al., 2016). However, the dynamics of digitalization have not been equally spread across regions, over time, or even across firms within countries. While differences in digitalization between high- and low-income countries remain large, spurred by the declining costs of broadband from the mid to late-2000s and the increasing ease of internet access with inexpensive mobile phones, some developing countries like South Africa have expanded their digital economies exponentially over the past decade or so.1 This paper explores the effects of the adoption of digital communication technologies on firm-level innovation and productivity in South Africa, focusing on the predominant segment of micro and small enterprises (MSEs), which includes firms operating informally.

Conclusion

     This paper explores the relationship between digitalization, innovation, and productivity for a sample of micro and small manufacturing firms in Johannesburg, South Africa. The survey of MSEs on which this study is based includes indicators of the use of social media and the use of a business mobile phone for surfing the internet, communicating with customers, and accessing markets through online sales. To our knowledge, it is the only survey in South Africa that specifically measures the adoption of these digital technologies by micro-enterprises, including non-registered businesses. Our findings show, firstly, that selected digital communication technologies, including the use of social media and using a mobile phone to browse the internet, have a positive effect on innovation. These results support the literature arguing that social media and using the internet can enable innovation by supporting interaction and knowledge exchange among firms and with consumers. Secondly, innovation conditional on the use of these digital communication technologies has a positive effect on labor productivity. This result is consistent with the large literature cited above in both developed and developing countries, showing a positive relationship between innovation and productivity.

Abstract

     Given that the Chief Digital Office (CDO) is a new business position, it is not yet clear what the key functions they must develop to successfully undertake the company digital transformation process. Although previous literature has tentatively covered this issue, there are still gaps in knowledge about which functions are truly relevant. The aim of this paper is to fill this gap by (1) clarifying the key CDO functions through a Delphi study, validated by a digital dynamic capabilities (DDC) framework (Warner and Wäger 2019), and (2) presenting a measurement instrument useful for assessing the degree of the key CDO functions performance. The findings highlight that key CDO functions are those mainly related to the ability to scan the external environment for unexpected digital trends. In contrast, there is an interesting agreement not to consider CDO responsible for maintaining and advancing the current IT infrastructure and architecture. Our study contributes to understanding the role of a new emergent Csuite position that strategically integrates business and technological knowledge in successfully managing the digital transformation process.

Introduction

     Digital technologies are disrupting a wide range of industries, transforming current ways of doing things and business models (North et al., 2019) through a process known as digital transformation (DT). DT goes beyond a mere digitalization of resources, as it involves the transformation of operations, products and processes, culminating in revised or entirely new business models (Hess et al., 2016; Singh et al., 2020). Following Vial (2019: 12), DT can be defined 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”. Warner and Wäger (2019: 344) conceive DT as an ongoing process of strategic renewal that uses advances in digital technologies to build capabilities that refresh or replace an organization’s business model, collaborative approach, and culture.

Conclusions, limitations and further research

     The aim of this paper is to delineate the key functions of the newly emerging CDO position. To do so, Warner and Wäger’s (2019) DDC framework was considered theoretical support to properly integrate the functions detected in previous literature. The Delphi study methodology was chosen to summarize and unify the criteria to finally obtain a measurement instrument.

     Linking CDO functions to a proposed theoretical framework has revealed that this new position influences all three main DDCs relevant in the DT process, especially through digital sensing capability.

     The prevalence of sensing could be caused by the organization’s early stages in DT processes, requiring special attention to detect digital opportunities and threats and less focus on implementing or consolidating new ways of doing things. Regarding digital seizing and transforming, even though CDO functions reached a high score in Delphi consensus of agreement, there seem to be slight resistance in incorporating these functions into a new independent position, perhaps because there is still a tendency to prioritize technical aspects, which have usually been assumed by traditional positions such as CIO and CTO.

Abstract

     It is no surprise that research on digital transformation (DT) has raised vast interest among academics in recent decades. Countries, cities, industries, companies, and people all face the same challenge of adapting to a digital world. The aim of the paper is twofold. First, map the thematic evolution of the DT research in the areas of business and management, because existing research in these areas to date has been limited to certain domains. To achieve this, articles were identified and reviewed that were published in the Chartered Association of Business Schools’ (ABS) ≥ 2-star journals. Based on these findings, the second objective of this paper will be to propose a synergistic framework that relates existing research on DT to the areas of business and management, which will help form the evolutionary perspective taken in this paper. Considering the emerging development of the topic under investigation, the framework is understood as a sound basis for continued discussion and forthcoming research.

Introduction

     The industrial world is evolving into a digital one (Parviainen, Tihinen, Kääriäinen, & Teppola, 2017). The COVID-19 pandemic has accelerated this phenomenon (Priyono, Moin, & Putri, 2020). Digital transformation (DT) has gone from being a technological opportunity to a pure necessity for managing the needs and expectations of the world’s growing population (Kraus et al., 2021). These developments have led to considerable changes in many organizations, with DT introducing new processes and mechanisms that can affect the key structures of how a company does business. According to Heavin and Power (2018), the primary aim of DT is to solve challenges concerning efficiency and effectiveness, while Hess, Benlian, Matt, and Wiesböck (2016) state that companies that do not rapidly develop and implement DT strategies are unlikely to keep pace and compete in the new digital reality. The transition to this new reality should however not be underestimated because, like every change process, it contains several risks and challenges (Andriole, 2017, Horváth and Szabó, 2019, Vial, 2019). We know from past research that any change is difficult to implement in organizations (Deline, 2018), and up to 70% of large organizational changes fail (Barrett & Stephens, 2016, 2017; Burke, 2011). It is also known that companies are slow to respond to change (Wright, Van Der Heijden, Bradfield, Burt, & Cairns, 2004), decreasing the likelihood of companies adopting DT and implementing DT strategies. Additionally, reports by Kane, Palmer, Phillips, Kiron, & Buckley, 2015 and Carr (2003) claim that there is a general misconception that technology drives DT when, according to the authors, it is a strategy instead. The COVID-19 pandemic, on the other hand, has shown the impact of a crisis (here, an external one) on the rapid adaptation of DT (Dwivedi et al., 2020, Fletcher and Griffiths, 2020, Iivari et al., 2020, Kodama, 2020, Osiyevskyy et al., 2020, Papagiannidis et al., 2020, Rowe, 2020).

Conclusion

     Despite recent developments, research on the topic of DT is still in an early stage. The present paper has mapped the thematic evaluation of research on DT in the areas of business and management. It not only highlights the top authors and countries that have contributed to the development of the topic so far, but also outlines the journals with the highest number of articles that have focused on DT in the two areas examined. To achieve the overall aim of this paper, different methodological and analytical procedures were utilized to determine the dominating themes during the period 2010–2020. Using the Web of Science database, and including articles published in ABS journals with a rating of two stars 2 or higher gathered and provided detailed information on the high-quality work being done on the topic of DT.

     The findings of different analytical phases were connected to and synthesized in a framework highlighting the current research themes regarding DT in the areas of business and management, showing where the body of knowledge has primarily been developed so far.

Abstract

     During the last decades, organizations worldwide have replaced their fragmented and home-grown information systems with standardized Enterprise Systems that span the entire organization. The logics embedded in Enterprise Systems, such as a centralized and integrated view on the firm, standardized organization-wide working processes, and data sharing, may or may not be congruent with the cultural context of the user organization. Especially in case of a limited alignment, the adoption and full use of the Enterprise System will require specific attention from implementers. By developing a theoretical explanation of how responses to Enterprise Systems are influenced by cultural values, we contribute to the development of a cultural alignment theory of Enterprise Systems. Drawing on Hofstede’s cultural values framework, we analysed 85 published cases from firms operating in different cultural contexts, which resulted in the modelling of two contrasting archetypical cultural profiles: one that is more, and one that is less, receptive to the logics embedded in Enterprise Systems. Our model provides implementers with the necessary insights to develop implementation strategies that take the cultural context into account.

Introduction

     For the last decades, the use of packaged integrated software solutions, so-called Enterprise Systems (ES), has expanded at the expense of custom-made systems. Enterprise Systems are commercial software packages that enable the integration of transaction-oriented data and business processes throughout an organization (Davenport, 1998). Although the technology of Enterprise Systems has improved over the years due to cloud platforms, increased connectivity, improved user-friendliness, and mobile access, the large-scale adoption and effective use of Enterprise Systems is an ongoing concern since the ‘one size fits all’ logic of Enterprise Systems does not always match specific and sometimes idiosyncratic needs present in organizations (Strong & Volkoff, 2010; Berente, Lyytinen, Yoo, & Maurer, 2019). User-friendly screen layouts cannot resolve the incompatibility between the system and the organization.

     Enterprise systems affect many aspects of a company’s internal and external operations, and their successful deployment is critical to organizational performance and survival. The case for ensuring successful implementation is evident since the costs and risks of these technology investments rival their potential payoffs. Many of the problems linked with ES implementation are related to a misfit of the system with the characteristics of the internal or external context of the organization (Kohli & Kettinger, 2004; Boonstra, 2006; Strong & Volkoff, 2010; Berente et al., 2019). The logics that are embedded in Enterprise Systems can be characterized as a centralized and integrated view of the firm, disciplined and standardized organization-wide working processes, data sharing, transparency, management control, and top-down implementation approaches (Soh et al., 2000, Strong and Volkoff, 2010). One important contextual factor of ES implementations is the culture (Soh et al., 2000), referring to the dominant national, regional, organizational, departmental, or occupational culture of the adopting organization, which to some extent will fit or misfit with the logics embedded in an Enterprise System.

Conclusion

     This study has examined how the adoption of Enterprise Systems implementations is influenced by cultural values. By doing so, we contribute to the development of a cultural alignment theory of Enterprise Systems. The logics embedded in Enterprise Systems can be characterized as a centralized and integrated view of the firm, disciplined and standardized organization-wide working processes, data sharing, transparency, management control, and top-down implementation approaches. These logics may or may not be congruent with the cultural values of the user organization. Using a case survey approach and drawing on Hofstede’s cultural values framework, we analysed 85 published cases from firms operating in different cultural contexts.

     The main theoretical contribution is that we develop a model for how specific cultural values trigger certain adoption antecedents that result in adoption behaviours. The case survey data resulted in the modelling of two contrasting cultural profiles: one that is accepting and one that is resisting the logics embedded in Enterprise Systems. In the accepting profile, a combined long-term orientation and collectivism help create the facilitating conditions for successful ES implementation. At the same time, a high power distance triggers the social influence, which makes ES adoption more likely. Conversely, in the resisting profile, a short-term orientation hinders implementing an Enterprise System, and it negatively affects the facilitating conditions necessary for ES implementation. Further, this resisting profile incorporates four cultural values that may boost resistance towards the implementation: high power distance, high uncertainty avoidance, individualism, and masculinity. The main practical contribution is that cultural values have to be taken into account when Enterprise Systems are introduced. We also provide project managers with insights to develop culture-sensitive implementation strategies.

Abstract

Organizational scandals at both the institutional and leadership levels abound in society, and, with growing platforms and forums to level allegations, public accusations by myriad individuals have increased. As an understudied genre, kategoria, or speeches of accusation, should be considered for their ability to influence change. In this study, I argue that kategoria can be employed as a form of rhetorical leadership and utilized as a tool to disrupt value hierarchies and, thus, effect organizational change. This investigation assumes a genre analysis to move beyond establishing accusation simply as a classification of forensic rhetoric but to illustrate that the generic form can be employed as rhetorical leadership, able to successfully be used by individuals with varying degrees of power to disrupt value hierarchy expectations and motivate change by establishing guilt and seeking justice. As the evolution of holding those in power accountable for misdeeds and public speeches of accusation continue, this study reveals both the rhetorical tactics that can impact change as well as how those who hold less institutional power can effectively enact these rhetorical strategies to achieve justice. To uncover the rhetorical mechanism of kategoria, I examine three contemporary and successful cases of leadership change in which individuals with less institutional power than the accused used discourse to motivate concrete action. My case studies include accusations leveled at leaders at Michigan State University, Uber, and Facebook. Deeper understanding of kategoria is necessary to enrich scholarship for critics by illuminating the rhetorical strategies that can be successfully deployed in these speeches to accomplish the ends called for by the accuser. Furthermore, elucidating these strategies has practical implications for individuals who wish to reveal leadership transgressions and impact institutional action. Revealing what has been useful in the past can inform future rhetorical attempts at kategoria that call for organizational change. At a time when enhanced understanding of speeches of accusation is critical for scholars and individuals seeking concrete change at the leadership level, my study fuses theoretical and practical implications, impacting both scholarship and society.

Highlights

Abstract

Keywords

1. Introduction

2. Background

3. Research methods

4. Findings

4.1. Descriptive analysis

4.2. Performance analysis

4.2.1. Documents

4.2.2. Sources

4.3. Science mapping

4.3.1. Network analysis

4.3.2. Overlay analysis

4.3.3. Density analysis

5. Discussions

5.1. What are the main research clusters about digital transformation in internal auditing?

5.2. What are the future research topics about digital transformation in internal auditing?

6. Conclusion

6.1. Lessons learned

6.2. Main contributions, limitations, and future research

Declaration of competing interest

References

Abstract

During the last years, the impacts caused by digital transformation on companies have been disruptive. Contrarily to prior technological revolutions, the current scenario is characterized by the rapid growth of innovation that has impacted organizations differently. In particular, an increasing number of organizations revised their management control systems to adequate their business models to the external pressures made by competitors and regulators. The research aims consist of a bibliometric analysis about the impacts caused by digital transformation on managerial auditing. The research reveals the existence of four independent research area: continuous auditing (Green Cluster), fraud detection (Blue Cluster), data analytics (Yellow Cluster) and technological innovation (Red Cluster). Finally, we developed a research agenda in order to address future research.

1. Introduction

The last years have been interested in the rapid growth of technological innovations that have impacted organizations in a disruptive way [1,2]. In particular, contrarily to the past, digital transformation impacted innovative and traditional sectors [3]. Furthermore, digital transformation also impacted sectors by a high degree of orientation toward technological innovation such as media and financial [4,5]. In this sense, policymakers and academics agreed about the existence of the new industrial revolution defined as Industry 4.0.

The digitalization of accounting and auditing practices represents one of the main paradigm shifts that have characterized the last years [6, 7]. This evidence was underlined by several position papers published by standard setters and practitioners. According to the IFAC, next years will be characterized by the exigence to rethink accounting professions because “Strong finance and accounting background is no longer sufficient to become a value-add business partner over the long term” [8]. In particular, the reports underlined the exigence for auditors to revise their paradigms to adequate their know-how toward the new challenges. Furthermore, KPMG highlights that digital transformation cannot be considered a voluntary choice for auditors due to its disruptive impact on organizations [9]. In this sense, auditing evolved from a bureaucratic to a strategic approach to operate more effectively within a complex and dynamic scenario.