Beyond Digital vs. IT: The Untold Story of Their Relationship from an Organizing Logic Perspective

Organizations often feature digital and information technology (IT) units, suggesting that managers perceive digital technology as different from IT. However, these units do not coexist in silos; rather, they interact in pursuit of organizational goals. In this study, we investigate the interactions between the digital and IT units of three organizations undergoing digital transformation. We find that these interactions reflect three relationships with varying dynamics. The interplay of these dynamics shape organization’s digital transformation efforts. We outline three considerations for managing these dynamics productively. First, we outline conditions that determine the dynamic (e.g., synergistic or conflicting) more likely to manifest. These conditions depend on the (in)compatibility between the units’ need to interact and the strategic, routine or technology rationales they draw on. We caution against seeking compatibility at all costs. Rather, managers should consider the context of each interaction before deciding how to influence these dynamics. Second, we found that interpersonal relationships, hiring talent with diverse perspectives, or establishing idea exchange forums can help to foster productive collaborations. However, they alone do not determine these dynamics. Third, cross-unit relationships is important for accomplishing organizational goals like digital transformation. Managers should proactively nurture such relationships to foster collaboration among units.