Conceptualization of Agile Transformation in Industrial Companies: Illustrative Application of the Framework

Abstract The present study explores the process of agile transformation and the implementation of agile work practices in industrial companies, outlining an appropriate theoretical conceptual framework for the agile transformation of organizations. The purpose of this research is to discuss theoretical approaches explaining agile transformation and agile work practices in industrial companies, to present a conceptual framework, and to assess the effectiveness of the framework on the example of selected German industrial companies. For the research, a descriptive research design was chosen to substantiate the structural perspective of agile transformation and agile work practices in industrial companies and to reveal the interaction between these dimensions, while seeking to present the conceptual framework. A qualitative research strategy with semi-structured interviews was applied. This article proposes a concept of agile transformation of industrial companies, encompassing new insights. Agile transformation is referred to as the ability of companies to remain stable by employing agile work practices, preparing for and adapting to changes in the new environment while stressing the importance of the selected leadership style within the context of the organizational culture, and finally, using the experience gained to strengthen the agile transformation competencies and emphasizing the leadership of the managers as they perform a decisive role in implementing agile transformation in the company, managing the agile work practices and uncertainty. At the end of the article, a conceptual framework is presented that reflects the key structural parts. The conceptual framework was validated on the example of selected five strongest German industrial companies. Expert assessments revealed the choice of the leader as trainer (as the most suitable leadership type) and its effect on the implementation of agile transformation in the company, seeking to navigate to an agile way of working (when the manager helps identify the areas of improvement in agile work methods and processes). The experts also highlighted the effectiveness of agile work practice implementation (allowing to suggest expansion opportunities for industrial companies, enabling the effectiveness and sustainable competitiveness in the sector) and noted the interaction between the two dimensions.