Abstract This paper applies the multilevel perspective (MLP) theory to investigate how collective identities influence sector‐wide digital transformations, focusing on the cooperative sector in Europe. By employing a wide mix of primary and secondary data from platform and incumbent cooperatives, our analysis showed that collective identities facilitate sector‐wide digital transformations by mobilizing resources and enhancing the legitimacy of niche innovations. However, they can also act as a source of friction across the different phases theorized by the MLP. Drawing on these findings, we propose a novel framework that links the influence of collective identities with overarching narratives framing digital transformation as either a threat, an inevitable tendency, or an opportunity to reaffirm collective identities. In addition to expanding current theorization on the role of collective identities, narratives, and intermediaries in sociotechnical transitions, our analysis urges managers and intermediary organizations to take the lead on the co‐creation of sector‐specific digital transformation narratives, reconciling collective identities with transition processes (and vice versa).
Gerli et al. (Thu,) studied this question.