Comparative case study reveals how organizational inertia and resource allocation shape digital transformation pathways.
Digital transformation has become a critical strategic choice for traditional manufacturing enterprises to maintain competitiveness, yet transformation outcomes vary significantly across firms. This study explores how organizational inertia and resource allocation patterns jointly shape digital transformation pathways. Through a longitudinal comparative case study of Suzhou Company A and Hangzhou Company B across two phases (2015-2018, 2019-2023), we develop a theoretical framework encompassing four transformation pathways: breakthrough, incremental, pilot, and dilemma. Our findings reveal that: (1) the interaction between organizational inertia and resource allocation patterns determines initial transformation pathways; (2) enterprises can achieve pathway transitions through adjusting resource allocation patterns, but transition speed is significantly constrained by organizational inertia levels; (3) external pressures trigger resource allocation adjustments by creating "windows of change," thereby driving pathway evolution. This study makes theoretical contributions by: constructing an integrative analytical framework combining organizational characteristics and resource allocation, revealing the dynamic evolution mechanisms of transformation pathways, and providing new theoretical perspectives for understanding the complexity of digital transformation in traditional enterprises. Practically, this research offers decision-making guidance for enterprises in selecting appropriate transformation pathways and timing pathway transitions.
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Yanxiang Li (2025) studied this question.
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