Digital transformation of incumbent service firms: legacy removal strategies

Article

Gooderham, P., Meyer, C., Stensaker, I., Elter, F., Madsen, A. and Pedersen, T. 2023. Digital transformation of incumbent service firms: legacy removal strategies. Beta: Scandinavian Journal of Business Research. 37 (1), pp. 1-22. https://doi.org/10.18261/beta.37.1.3
TypeArticle
TitleDigital transformation of incumbent service firms: legacy removal strategies
AuthorsGooderham, P., Meyer, C., Stensaker, I., Elter, F., Madsen, A. and Pedersen, T.
Abstract

For strategic leaders of incumbent service firms, the challenge of digital transformation involves the removal of legacy IT systems without sacrificing critical income streams. We argue that the removal of these is a distinct component of the third core constituent of dynamic capabilities – transforming. Employing two case studies, DNB and Telenor, we explore the micro-level processes through which strategic leaders attempted to remove technology-related legacy to foster digital transformation. Both DNB and Telenor viewed legacy removal as critical for digital transformation. To theorize the micro-foundations of legacy removal, we examined the approaches top management either used or considered using to remove legacy. Our analysis revealed three distinctive approaches to legacy removal: escaping, shrinking, and terminating (‘big-bang’ versus ‘step-by-step’).

Keywordsdigital transformation; legacy removal; incumbent firms; strategic leadership
Sustainable Development Goals9 Industry, innovation and infrastructure
Middlesex University ThemeCreativity, Culture & Enterprise
PublisherScandinavian University Press
JournalBeta: Scandinavian Journal of Business Research
ISSN0801-3322
Electronic1504-3134
Publication dates
Online14 Dec 2023
PrintSep 2023
Publication process dates
Accepted27 Nov 2023
Deposited06 Dec 2023
Output statusPublished
Accepted author manuscript
License
File Access Level
Open
Copyright Statement

This is the Accepted Manuscript version of the paper. The Version of Record is published at https://doi.org/10.18261/beta.37.1.3.

Digital Object Identifier (DOI)https://doi.org/10.18261/beta.37.1.3
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/x6512

Log in to edit

Download files

Accepted author manuscript
03_Beta_1-23_Gooderham (språkvasket av AK).pdf
License: CC BY 4.0
File access level: Open

  • 92
    total views
  • 22
    total downloads
  • 5
    views this month
  • 2
    downloads this month

Export as

Related outputs

Control of subsidiary HRM policies by multi-national corporate headquarters: the role of institutional differences and labor unions
Fenton-O'Creevy, M. and Gooderham, P. 2025. Control of subsidiary HRM policies by multi-national corporate headquarters: the role of institutional differences and labor unions. International Business Review. 34 (1). https://doi.org/10.1016/j.ibusrev.2024.102323
Country-of-origin effect
Gooderham, P. 2024. Country-of-origin effect. in: Asmussen, C., Hashai, N. and Minbaeva, D. (ed.) Encyclopedia of International Strategic Management Cheltenham Edward Elgar Publishing . pp. 40-42
Managing human resource management tensions in project-based organisations: evidence from Bangalore
Mathew, J., Srinavasan, V., Croucher, R. and Gooderham, P. 2023. Managing human resource management tensions in project-based organisations: evidence from Bangalore. Human Resource Management Journal. 33 (2), pp. 432-451. https://doi.org/10.1111/1748-8583.12439
Institutional duality and human resource management practice in foreign subsidiaries of multinationals
Stavrou, E., Parry, E., Gooderham, P., Morley, M. and Lazarova, M. 2023. Institutional duality and human resource management practice in foreign subsidiaries of multinationals. Human Resource Management Journal. 33 (1), pp. 69-94. https://doi.org/10.1111/1748-8583.12357
Contextualizing AMO explanations of knowledge sharing in MNEs: the role of organizational and national culture
Gooderham, P., Pedersen, T., Sandvik, A., Dasí, À., Elter, F. and Hildrum, J. 2022. Contextualizing AMO explanations of knowledge sharing in MNEs: the role of organizational and national culture. Management International Review. https://doi.org/10.1007/S11575-022-00483-0
The digital challenge for multinational mobile network operators. More marginalization or rejuvenation?
Gooderham, P., Elter, F., Pedersen, T. and Sandvik, A. 2022. The digital challenge for multinational mobile network operators. More marginalization or rejuvenation? Journal of International Management. 28 (4), pp. 1-14. https://doi.org/10.1016/j.intman.2022.100946
'Americanization' and the drivers of the establishment and use of works councils in three post-socialist countries
Croucher, R., Gooderham, P. and Sandvik, A. 2022. 'Americanization' and the drivers of the establishment and use of works councils in three post-socialist countries. Human Resource Management Journal. 32 (2), pp. 430-448. https://doi.org/10.1111/1748-8583.12408
Guest editorial [Special Issue: Do multinational enterprise contribute to, or reduce global inequality?]
Zhao, S., Gooderham, P., Papanastassiou, M. and Harzing, A. 2021. Guest editorial [Special Issue: Do multinational enterprise contribute to, or reduce global inequality?]. Critical Perspectives on International Business. 17 (1), pp. 2-8. https://doi.org/10.1108/cpoib-03-2021-107
Individual-level rewards and appraisal: the influence of context
Gooderham, P. and Mayrhofer, W. 2021. Individual-level rewards and appraisal: the influence of context. in: Parry, E., Morley, M. and Brewster, C. (ed.) The Oxford Handbook of Contextual Human Resource Management Oxford University Press (OUP). pp. 501-519
Talent development as an alternative to orthodox career thinking: the Scandinavian case
Larsen, H., Stensaker, I., Gooderham, P. and Schramm-Nielsen, J. 2020. Talent development as an alternative to orthodox career thinking: the Scandinavian case. in: London, M. (ed.) Oxford Handbook of Lifelong Learning New York Oxford University Press (OUP).
Successful and unsuccessful radical transformation of multinational mobile telephony companies: the role of institutional context
Elter, F., Gooderham, P. and Stensaker, I. 2021. Successful and unsuccessful radical transformation of multinational mobile telephony companies: the role of institutional context. in: Verbeke, A., van Tulder, R., Rose, E. and Wei, Y. (ed.) The Multiple Dimensions of Institutional Complexity in International Business Research Vol: 15 Emerald Publishing Limited.
Context and HRM: theory, evidence, and proposals
Mayrhofer, W., Gooderham, P. and Brewster, C. 2019. Context and HRM: theory, evidence, and proposals. International Studies of Management and Organization. 49 (4), pp. 355-371. https://doi.org/10.1080/00208825.2019.1646486
VUCA and the future of the global mobile telco industry
Dasí, À., Elter, F., Gooderham, P. and Pedersen, T. 2019. VUCA and the future of the global mobile telco industry. in: van Tulder, R., Verbeke, A. and Jankowska, B. (ed.) International Business in a VUCA World: The Changing Role of States and Firms Emerald Publishing Limited.
Global strategy and management
Gooderham, P., Grøgaard, B. and Foss, K. 2019. Global strategy and management. Cheltenham Edward Elgar Publishing .
A framework for comparative institutional research on HRM
Gooderham, P., Mayrhofer, W. and Brewster, C. 2019. A framework for comparative institutional research on HRM. The International Journal of Human Resource Management. 30 (1), pp. 5-30. https://doi.org/10.1080/09585192.2018.1521462
The effect of organizational separation on individuals' knowledge sharing in MNCs
Dasí, À., Pedersen, T., Gooderham, P., Elter, F. and Hildrum, J. 2017. The effect of organizational separation on individuals' knowledge sharing in MNCs. Journal of World Business. 52 (3), pp. 431-446. https://doi.org/10.1016/j.jwb.2017.01.008
Institutional change and regional development in China: the case of commodity trading markets
Wang, J. and Gooderham, P. 2014. Institutional change and regional development in China: the case of commodity trading markets. Environment and Planning C: Politics and Space. 32, pp. 471-490. https://doi.org/10.1068/c11254b
National and firm-level drivers of the devolution of HRM decision making to line managers
Gooderham, P., Morley, M., Parry, E. and Stavrou, E. 2015. National and firm-level drivers of the devolution of HRM decision making to line managers. Journal of International Business Studies. 46 (6), pp. 715-723. https://doi.org/10.1057/jibs.2015.5
The labor market regimes of Denmark and Norway – one Nordic model?
Gooderham, P., Navrbjerg, S., Olsen, K. and Steen, C. 2015. The labor market regimes of Denmark and Norway – one Nordic model? Journal of Industrial Relations. 57 (2), pp. 166-186. https://doi.org/10.1177/0022185614534103
Designing global leadership development programmes that promote social capital and knowledge sharing
Stensaker, I. and Gooderham, P. 2015. Designing global leadership development programmes that promote social capital and knowledge sharing. European Journal of International Management. 9 (4), pp. 422-462. https://doi.org/10.1504/EJIM.2015.070229
Effective boundary spanners in IJVs experiencing performance downturn
Gooderham, P., Zhang, M. and Jordahl, A. 2015. Effective boundary spanners in IJVs experiencing performance downturn. in: Camillo, A. (ed.) Global Enterprise Management, Volume II: New Perspectives on Challenges and Future Developments New York Palgrave Macmillan.
Functional-level transformation in multi-domestic MNCs: transforming local purchasing into globally integrated purchasing integrated purchasing
Elter, F., Gooderham, P. and Ulset, S. 2014. Functional-level transformation in multi-domestic MNCs: transforming local purchasing into globally integrated purchasing integrated purchasing. in: Orchestration of the Global Network Organization Emerald Publishing Limited.
A multilevel analysis of the use of individual pay-for-performance systems
Gooderham, P., Fenton-O'Creevy, M., Croucher, R. and Brookes, M. 2018. A multilevel analysis of the use of individual pay-for-performance systems. Journal of Management. 44 (4), pp. 1479-1504. https://doi.org/10.1177/0149206315610634
Improvisation: a legitimate strategy in the face of adversity
Best, S. and Gooderham, P. 2015. Improvisation: a legitimate strategy in the face of adversity. Small Enterprise Research. 22 (1), pp. 49-68. https://doi.org/10.1080/13215906.2015.1017871
Developing organizational social capital or prima donnas in MNEs? The role of global leadership development programs
Espedal, B., Gooderham, P. and Stensaker, I. 2013. Developing organizational social capital or prima donnas in MNEs? The role of global leadership development programs. Human Resource Management. 52 (4), pp. 607-625. https://doi.org/10.1002/hrm.21544
Governance mechanisms for the promotion of social capital for knowledge transfer in multinational corporations
Gooderham, P., Minbaeva, D. and Pedersen, T. 2011. Governance mechanisms for the promotion of social capital for knowledge transfer in multinational corporations. Journal of management studies.. 48 (1), pp. 123-150. https://doi.org/10.1111/j.1467-6486.2009.00910.x
One European model of HRM? Cranet empirical contribution
Gooderham, P. and Nordhaug, O. 2011. One European model of HRM? Cranet empirical contribution. Human Resource Management Review. 21 (1), pp. 27-36. https://doi.org/10.1016/j.hrmr.2010.09.009
Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?
Fenton-O'Creevy, M., Gooderham, P. and Nordhaug, O. 2008. Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy? Journal of International Business Studies. 39 (1), pp. 151-166. https://doi.org/10.1057/palgrave.jibs.8400313
Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices
Døving, E. and Gooderham, P. 2008. Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices. Strategic Management Journal. 29 (8), pp. 841-857. https://doi.org/10.1002/smj.683
The impact of bundles of strategic human resource management practices on the performance of European firms
Gooderham, P., Parry, E. and Ringdal, K. 2008. The impact of bundles of strategic human resource management practices on the performance of European firms. International Journal of Human Resource Management. 19 (11), pp. 2041-2056. https://doi.org/10.1080/09585190802404296
Measuring competing explanations of human resource management practices through the Cranet survey: cultural versus institutional explanations
Brookes, M., Croucher, R., Fenton-O'Creevy, M. and Gooderham, P. 2011. Measuring competing explanations of human resource management practices through the Cranet survey: cultural versus institutional explanations. Human Resource Management Review. 21 (1), pp. 68-79. https://doi.org/10.1016/j.hrmr.2010.09.012
The influences on direct communication in British and Danish Firms: country, 'strategic HRM' or unionisation?
Croucher, R., Parry, E. and Gooderham, P. 2006. The influences on direct communication in British and Danish Firms: country, 'strategic HRM' or unionisation? European Journal of Industrial Relations. 12 (3), pp. 267-286. https://doi.org/10.1177/0959680106068913