Human and technological actors shaping digital transformation capability: an integrative review

Purpose This study aims to clarify and synthesise the fragmented, multidisciplinary digital transformation (DT) literature, addressing three gaps, namely the role of cognitive technologies, the employee mindsets required and the paradoxical tensions firms experience as they transform their firms. Cognitive technologies like AI, IoT and other autonomous systems simulate human cognitive processes, challenging prior firm and employee practices. Design/methodology/approach A systematic literature review guided by the PRISMA protocol was conducted to thematically analyse 83 peer-reviewed articles, drawing on the micro-foundations of dynamic capabilities. Findings Our findings reveal cognitive technologies remain overlooked in the bulk of DT literature despite their relevance to knowledge search, knowledge management and transactive memory systems as micro-foundations of DT capabilities. Based on dynamic capabilities’ aggregate dimensions, our thematic analysis suggests managers should navigate a sensing paradox of renewal drivers, a seizing paradox of innovation posture and a reconfiguring paradox of structural malleability. Originality/value A future research agenda is presented to steer scholarly interest in DT, guide management decision-making related to DT and advance the field beyond its nascent stages considering the emergent role of cognitive technologies.