Digital transformation of a manufacturing firm: A matter of combining resources and strategizing in business networks

Licentiate thesis, 2023

Manufacturing firms are gradually undergoing digital transformation through starting to implement new digital technologies, and creating new offerings to meet customer needs. As no business is an island, the process of creating new digital offerings and selling these to customers involves collaboration with other actors. These actors need to develop and combine resources to successfully create value in the business network. Under these circumstances, manufacturing firms develop strategic actions to access and combine such resources.

The purpose of this thesis is to understand resource combining and strategizing in business networks, as part of the process of digital transformation, from the perspective of a focal manufacturing firm interacting with customers and suppliers. This thesis relies on the Industrial Network Approach (INA), and more specifically literature on resources and strategizing, to study business relationships with regard to digital transformation and reveal the nuances and effects of characteristics of digital resources during resource combining and value creation. A single case study of a manufacturing firm undergoing the process of digital transformation, and its related business network, was conducted. By applying the case study method, details about different business relationships within the context of digital transformation were captured and analysed.

The findings of this thesis show that a focal firm needs to take a variety of strategic actions when interacting with other actors, creating and consolidating elements of the business relationships. Focal firms also strive to access and combine key digital and non-digital resources. As a result of this resource combining, value can be created in the forms of flexibility, efficiency, novelty and functioning digital solutions.

This thesis advances the understanding of the interplay between creating/consolidating elements of business relationships to access and combine digital resources during the process of digital transformation. Based on the intrinsic characteristics of digital resources, the forms of resource combining provided in this study offer a perspective on the opportunities, values and challenges that digitalisation presents in the ever-evolving digital business landscape.