Avoiding Digitalization Traps: Tools For Top Managers

Nell, Phillip C.; Foss, Nicolai J.; Klein, Peter G.; Schmitt, Jan

doi:10.2139/ssrn.3582655

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Avoiding Digitalization Traps: Tools For Top Managers

17 Pages Posted: 19 May 2020

See all articles by Phillip C. Nell

Phillip C. Nell

Vienna University of Economics and Business - Department of Global Business and Trade; Copenhagen Business School - Department of Strategy and Innovation

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Peter G. Klein

Baylor University - Hankamer School of Business; NHH Norwegian School of Economics - Department of Strategy and Management; Ludwig von Mises Institute

Jan Schmitt

WU Vienna University of Economics and Business

Date Written: April 6, 2020

Abstract

Digital transformation is fundamentally changing the business landscape. It is also affecting the role of top managers within firms. Our survey of more than 160 senior managers in Europe suggests that digitalization, rather than encouraging more decentralized forms of management, will lead to an expanded role of headquarters and further empowerment of top managers. While acknowledging the benefits of the digital transformation, we identify five key challenges for newly empowered top managers and offer solutions for these “digitalization traps.”

Keywords: digitalization, top managers, biases, headquarters, centralization

JEL Classification: M15, L24, D23

Suggested Citation: Suggested Citation

Nell, Phillip C. and Foss, Nicolai J. and Klein, Peter G. and Schmitt, Jan, Avoiding Digitalization Traps: Tools For Top Managers (April 6, 2020). Available at SSRN: https://ssrn.com/abstract=3582655 or http://dx.doi.org/10.2139/ssrn.3582655