Dynamic Capabilities to Manage Generative Artificial Intelligence in Digital Transformation Efforts

Daria Höhener ()
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Daria Höhener: University of St.Gallen

A chapter in Digital Innovation and Organizational Transformation, 2026, pp 189-204 from Springer

Abstract: Abstract Incumbent firms face significant challenges due to rapid technological advancements, notably through generative artificial intelligence (genAI). By interviewing experienced digital leaders in a multiple-case study involving five organizations, this study elucidates eleven microfoundations, also referred to as low-level dynamic capabilities (DC). The specific focus centers on sensing, seizing, and transforming within the context of digital transformation (DT) efforts, offering insights into how organizations can navigate and leverage genAI to enhance their DT strategies. The identified microfoundations encompass 1) empowerment and knowledge utilization, 2) innovation ecosystem engagement, 3) organizational learning and openness, 4) interdisciplinary collaboration, 5) learning-driven innovation network, 6) organizational agility, 7) strategic leadership, 8) alignment and governance enhancement, 9) adaptive and informed culture, 10) organizational resilience, and 11) synergy creation. These foundations collectively provide a framework for leveraging genAI effectively from an organizational perspective.

Keywords: Dynamic capabilities; Generative AI; Artificial intelligence; Digital transformation; Multiple case study (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnichp:978-3-032-08483-5_13

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DOI: 10.1007/978-3-032-08483-5_13

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