Science Research Management ›› 2022, Vol. 43 ›› Issue (4): 75-82.

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An exploration of the antecedents and realization paths of digitalization-oriented strategic renewal:A study from the organizational unlearning perspective

Cui Miao, Zhou Xiaoxue   

  1. School of Economics and Management, Dalian University of Technology, Dalian 116024, Liaoning, China
  • Received:2021-07-20 Revised:2021-11-29 Online:2022-04-20 Published:2022-04-19

Abstract:    In the context of new industrial revolution, changes in the external technology environment such as big data, cloud computing have brought great challenges to many traditional industries. In order to keep up with the environments and occupy a place in the market competition, traditional enterprises in manufacturing, retail and other industries have seized the opportunities of digital technology and committed themselves to digitalization-oriented strategic renewal, which refers to the digital oriented innovation activities in product-market fields such as digital product development and digital channel expansion carried out by traditional enterprises in order to comply with the trend of digital economy. For traditional enterprises, how to realize digitalization-oriented strategic renewal has become a key issue.
   Considering that micro practice research in digital context is just emerging, there is a lack of research on how top-bottom and bottom-up strategic activities promote digitalization-oriented strategic renewal. This paper choose entrepreneurial orientation and organizational improvisation as the top-bottom and bottom-top antecedents of digitalization-oriented strategic renewal. In addition, organizational learning, that is, new knowledge acquisition, is considered to be an effective factor driving strategic renewal, but some studies have shown that new ideas and practices cannot be integrated into the organization before abandoning outdated knowledge. In the digital economy, traditional enterprises must unlearn the outdated concepts, conventions in order to innovate and realize digitalization-oriented strategic renewal. Based on the above research gaps, this paper proposes a research framework of "strategic activities-unlearning- digitalization-oriented strategic renewal" for traditional enterprises in the digital economy.
    Specifically, this paper adopts the design of mixed research method, trying to solve two problems: first, based on the survey method, this paper analyzes the impact of entrepreneurial orientation and organizational improvisation on digitalization-oriented strategic renewal through organizational unlearning (Study 1). Second, based on the case study method, this paper discusses the path of traditional enterprises to achieve digitalization-oriented strategic renewal through organizational unlearning (Study 2). 
    Through 232 valid questionnaires, Study 1 finds that entrepreneurial orientation and improvisation can promote the two dimensions of digitalization-oriented strategic renewal. The results show that unlearning can promote digital exploratory innovation, but the effect of digital exploitive innovation is not significant. Finally, we identify two paths to realize digitalization-oriented strategic renewal, namely "entrepreneurial orientation-unlearning-digital exploratory innovation" and "organizational improvisation-unlearning-digital exploratory innovation". Study 2 adopts the case of Haier to further analyze the two paths for digitalization-oriented strategic renewal, as well as the different modes of unlearning in the top-bottom and bottom-up paths. In the top-bottom path, entrepreneurial orientation promotes digital exploratory innovation activities by breaking the organizational structure that restricts organizational renewal and change. In the bottom-up path, organization improvises to promote digital exploratory innovation activities by changing employee functions and roles, workflow.
    The theoretical contributions of this study include: (1) This paper enriches the micro practice research of digitalization-oriented strategic renewal; and proposes that entrepreneurial orientation and organizational improvisation are top-bottom and bottom-up strategic activities respectively. (2) As a special type of organizational learning, less attention has been paid to the role of unlearning in strategic renewal. This paper analyzes the role of unlearning in digitalization-oriented strategic renewal of traditional enterprises, and finds that unlearning can promote digital exploratory innovation activities. (3) This paper introduces a new explanatory perspective, taking unlearning as an intermediary variable, and discusses the intermediary role of unlearning between strategic activities and digitalization-oriented strategic renewal. Among them, entrepreneurial oriented activities can help traditional enterprises better seize opportunities and make use of new ideas; improvisational activities indicate that employees will take the initiative to question the long-standing ideas and practices in the organization, and take innovative measures to adjust.
The management implications of this study include: (1) Traditional enterprises can promote digitalization-oriented strategic renewal through top-bottom entrepreneurial oriented activities and bottom-up organizational improvisation activities. Entrepreneurial orientation is conducive to identifying and discovering new market opportunities. Senior managers should encourage employees to break the rules and use digital technology to explore new business areas. Improvisation is beneficial for employees to respond to new opportunities in real time. The rules of improvisation should be made clear in enterprises, and employees should be encouraged to perform related tasks creatively under this guidance. (2) Unlearning is an effective way for traditional enterprises to break the path dependence and organizational inertia in the digital economy. Traditional enterprises should abandon outdated concepts, knowledge or practices in order to make room for the new knowledge.

Key words: digitalization-oriented strategic renewal, entrepreneurial orientation, organizational improvisation, organizational unlearning