Sociotechnical micro-foundations for digital transformation

This paper introduces sociotechnical micro-foundations for digital transformation. The concept highlights how the macro-level capabilities that enable organisations to conduct digital transformation originate from competent individuals, digital resources, and their interactions. In developing the sociotechnical micro-foundation concept, we explored the sociotechnical interactions that facilitated the digital transformation of a Nordic hotel chain and how macro- and micro-level interactions are linked throughout the transformation process. Adopting a sociotechnical perspective helped us shed light on how the synergistic effect of individuals and digital resources interacting in digital transformation enables higher-level outcomes. By developing and theorising sociotechnical micro-foundations, we offer three contributions. First, we propose a concept at the micro level, the basic building block of digital transformation, that ensures the joint consideration of social and technical elements, as well as how to combine them. By showing the interaction between the macro and micro levels, we extend the current knowledge of how organisations develop macro-level capabilities for digital transformation. Second, we contribute to the micro-foundation literature, a body of knowledge that lacks a technical dimension, by demonstrating how interactions between individuals and digital resources are key to understanding what happens at the micro level. Third, we offer practical implications for managers.