Types of Tensions and Their Transformative Effects in Digital Transformation of Incumbents

Digital transformation in incumbent organizations is characterized by organizational tensions. These emerge when established routines, value propositions, and identity-related aspects clash with new digitally-enabled ones. Based on an in-depth exploratory case study with the car wash equipment manufacturer CleanCar, we report on two findings: First, tensions in digital transformation are not only of paradoxical nature as is commonly assumed. Instead, tensions take on various forms: dialectic (‘B2B versus B2C identity’), trade-off (‘local adoption versus centralization’), duality (‘material versus immaterial solutions’ and ‘cost-based versus value-based revenue logic’), and paradox (‘strengthening the core versus embracing the unknown’). Second, we associate different tension types with different transformative effects implying that the tensions’ impact on the digital transformation varies. Based on these findings we discuss how our research extends current understanding of tensions during the digital transformation of incumbents.