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
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