From Technical Conversion to Social Transformation: Organizational Interpretations and Public Discourse in the Case of the Digital Transformation

Abstract Digital transformation is widely considered to be a critical issue with far-reaching impacts on corporations, industries, and society. While business research generally supports this view, there has been limited insight into how corporations, as both primary drivers and recipients of digital transformation, have shaped the development of this understanding. In this study, we adopted a discursive perspective from institutional theory and examined the interplay between organizational and public interpretations of digital transformation. Using a topic modeling approach with map analyses, we analyzed annual reports and media publications—including newspapers, magazines, and the industry trade press—published in Germany between 2005 and 2017. Our findings reveal that interpretations of the digital transformation evolved over time, which we trace back to a co-constitutive relationship between organizational and public discourse. Specifically, we conclude that structures of public discourse may shape new organizational interpretations and contribute to a shared understanding among organizations and vice versa. Further, we find that the various media types in public discourse play distinct roles in shaping organizational interpretations. Our study contributes to business research by offering new insights into digital transformation and the relationship between organizations and the issues in their environment.