Research Paper
Understanding successful implementation of
Digital Transformation in a South African retail
organization
Submitted by:
Tshisevhe Nnzeru (331140)
Date: 07 August 2023
Supervisor: Dr Suzanne Sackstein
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Declaration regarding Plagiarism
(University of the Witwatersrand Plagiarism Policy, 2019)
I, Tshisevhe Nnzeru (Student number: 331140) am a student registered for MComm (IS) in the year
of 2021/2022.
I hereby declare the following:
1. I understand what plagiarism (the use of someone else’s work without their permission
and/or without acknowledging the original source) is, that it is wrong and I understand the
University’s policy in this regard.
2. I declare that this research is my own, original work. Where I have used someone else’s work
(whether from a printed source, the Internet, or any other source) I have given due
acknowledgement and made reference according to departmental requirements for the
material of others.
3. I did not copy and paste any information directly from an electronic source (e.g. a web page,
electronic journal article or CD ROM) into my research.
4. I did not make use of another student’s previous work and submitted it as my own.
5. I did not allow and will not allow anyone to copy my work with the intention of presenting it
as his/her own work.
6. I understand that the University of the Witwatersrand may take disciplinary action against
me if there is belief that this is not my own unaided work or that I have failed to acknowledge
the material of others.
07th August 2023
Signature Date
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Acknowledgements
This research is dedicated to my amazing son and life assistant Tintswalo Nnzeru and munghana Thabiso
Monare who not only fell seriously ill but got into unfortunate tragic circumstances and could not cheer me on
this journey.
To say the past two years were tough is an understatement and I can honestly say that I did not know what I
was getting myself into, however, I have learned a lot during this journey, have been tested and stretched
beyond all limits. With this, I would like to acknowledge first and foremost my God Almighty without whom
none of this would be possible. This is all testament to God’s glory over my life and I will praise you forever for
giving me strength to get through this often when life circumstances were taking their toll on me. Indeed, your
grace is sufficient for me Lord!
My son Tintswalo, to whom I owe a lot of gratitude, lost a mom and caregiver and inherited a fellow student
and housemate in the house, but he rose to the occasion, becoming completely self-independent with his school
work. This meant managing his homework and preparations for exams and/or assessments, to the point of
getting Academic awards in the second year with four distinctions in Grade 4, becoming mom’s caregiver
constantly looking out for me, making sure I rest and exercising concern over me due to the often long hours
on of writing daily, even taking on additional domestic chores in the house. You are truly a blessing Tintswalo
and for this, I am eternally grateful. I love you and may God bless you richly for everything you are and have
done for me during this time, you make motherhood easy for me, especially during this time. I am extremely
proud of the young man you have become and very sure God will do amazing things with your life.
Munghana ndi khou nwala hafha ndi sa divhi uri u hani, fhedzi ha Mudzimu ndi muhulwane. Tshe vha mu disela
tshone vhutshiloni hanga tshi kha di do vhonala. Naho zwithu ndi tshi khou nwala zwi tshi khou konda thama
ndi vha ndo mu humbula misi yothe na dzi Nare dzothe. Ndi a mufuna nga lufuno lwa Mudzimu munghana ende
ndi na fulufhelo uri ene u dovha right hu si kale fhedzi ha azwi divhe uri vhukonani hawe ho disa zwinzhisa kha
nne.
My supervisor Dr Suzanne Sackstein, the value of a supervisor cannot be underestimated one bit, your
unwavering commitment and support over the last twelve months was immense. Your attention to detail and
expectation for high standards taught me a lot and I hope I rose to the occasion and that you will be proud of
our collaboration in this difficult yet exciting learning journey for the both of us. From the bottom of my heart,
thank you for not only caring about my work but my well-being too as I navigated this demanding journey. You
are special and greatly appreciated for how you helped me navigate a subject matter for which you are no
expert yourself yet your academic rigour helped to shape and deliver a great outcome.
Most of my friends literally did not see me this entire period yet remained very supportive, kept in touch and
believed in me to pull through. Thank you for allowing me to disappear from our circles but not allowing any
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distance to creep in between us, I value our friendships immensely. A special thank you to my friend Dr
Vhuhwavho Nekhavhambe, Dr Alick Chingapi and Manthisana Mosese who generously agreed to take on the
task to proof read the research report, your feedback was invaluable, you are friends like no other, thank you
again. My family, my siblings Lutendo and Phumudzo who always have faith in me, and everyone who cheered
me on especially from Nnzeru na vhaduhulu, thank you. I know mma na papa will be very proud of my
achievement.
I cannot close without acknowledging my current employer for giving me an opportunity and support during
this time, my colleagues who gave of their time to help me out in this project, words cannot thank you enough.
A special thank you to my former boss and current boss who supported me greatly, affording me time off to
study often when work demands didn’t naturally allow. Lastly, the big boss who didn’t hesitate to lend his
support too, whose recommendation ensured the insights were not only rich but diverse too, thank you. All of
you ladies and gentlemen rock and I am eternally grateful.
Last but not least, my Homecell leaders for their support, an opportunity to serve in your structure and grow
in ministry alongside this Research project and for accommodating me when I couldn’t show up. You genuinely
showed so much care and understanding and may God Bless you richly. I learned from you that our God is a
provider, my sustainer, the one who gives me strength through it all, and indeed his grace that carried me
through literally. You’ve witnessed God’s goodness in my life literally, in particular as I navigated the Research
along great difficulties in my life, thank you for your leadership, it has been truly a privilege to serve in your
structure.
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ABSTRACT
Digital Transformation is at the heart of the Fourth Industrial Revolution and much of the research claims that
an organization’s success is increasingly dependent on their ability to exploit DT with the e-Commerce industry
being significant globally. While South Africa’s digital transformation is materially behind developed nations,
retailers are gearing up for growth by digitally transforming their operations, not only to compete but remain
relevant. Therefore, this research seeks to understand the successful implementation of Digital Transformation
in a South African retail context. The Technology, Organization and Environment Framework was selected as
the theoretical framework to guide the research design and interpret findings. The research question for the
study is What does successful DT implementation in a SA retail organization entail? To answer this research
question, an interpretivist qualitative, case study research design was employed. Data from a retailer
undergoing Digital Transformation was collected through ten semi-structured interviews using an Interview
guide and analyzed using Content analysis method. Findings reveal that Digital Transformation is not about
Technology, it is organizational transformation encompassing transformational leadership, strategy
development and implementation aligned with overall business strategy, technology as an enabler for
transformation, empowerment of the workforce with digital skills and a conducive digital culture characterized
by learning, change, innovation and adaptability. Findings also indicate that the added complexities of legacy
environments cannot be underestimated for traditional brick-and-mortar retailers. In essence, DT is about
people embracing change – not technology. As limited research has been conducted and published regarding
the South African retail DT context, these findings contribute to the limited existing knowledge base with
empirical findings, specifically, contributing important knowledge on what specific aspects need to be
considered and accounted for when conducting DT and proved TOE Framework to be useful for understanding
large digital disruption. For practitioners this research contributes a holistic approach to implementing DT
beyond technology which includes transformational leadership, Digital Transformation Strategy development
and alignment with overall business strategy, empowering people with digital skills and a digitally enabled
culture with digital technology as an enabler for Digital Transformation. Furthermore, to be successful with
Digital Transformation, it becomes essential for organizations to manage the added complexities of legacy
environments and lastly, for entrenched workforces to realize that Digital Transformation is a necessity for
business survival and adapt.
Keywords
Adaptability, Agility, Digital Transformation, e-Commerce, digital technologies, digital workplace skills, digital
workplace culture, Fulfillment, Hermeneutic, Omni-channel, online retail, DT leadership, DT strategy,
Technology, Organization and Environment Model, Technology
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Table of Contents
ABSTRACT ......................................................................................................................................................................................................... iv
1 INTRODUCTION ................................................................................................................................................................................... 1
1.1 Background .................................................................................................................................................................................. 1
1.2 Research Problem ..................................................................................................................................................................... 2
1.3 Purpose of the study ................................................................................................................................................................. 3
1.4 Research Questions .................................................................................................................................................................. 3
1.5 Intended contribution of the study .................................................................................................................................... 3
1.6 Delimitations of the study ...................................................................................................................................................... 4
2 LITERATURE REVIEW ....................................................................................................................................................................... 4
2.1 Hermeneutic Method ............................................................................................................................................................... 4
2.1.1 Hermeneutic Processes used ..................................................................................................................................... 5
2.2 Online Retail ................................................................................................................................................................................. 8
2.3 Online Retail Environment .................................................................................................................................................... 9
2.4 Digital Technologies ............................................................................................................................................................... 10
2.5 Digital Transformation .......................................................................................................................................................... 11
2.6 Benefits of DT ............................................................................................................................................................................ 12
2.7 Challenges of DT ....................................................................................................................................................................... 12
2.8 Implementing successful DT ............................................................................................................................................... 13
2.8.1 DT Leadership ................................................................................................................................................................ 14
2.8.2 DT Strategy ...................................................................................................................................................................... 15
2.8.3 Technology as an enabler for DT ........................................................................................................................... 15
2.8.4 Digital workforce skills .............................................................................................................................................. 16
2.8.5 Digital culture ................................................................................................................................................................. 17
2.9 Conclusion................................................................................................................................................................................... 18
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3 CONCEPTUAL FRAMEWORK ........................................................................................................................................................ 19
3.1 Technology Acceptance Model (TAM) ........................................................................................................................... 19
3.1.1 Overview of TAM ........................................................................................................................................................... 19
3.1.2 Where TAM has been used ....................................................................................................................................... 21
3.1.3 Reasons for not selecting TAM................................................................................................................................ 21
3.2 Institutional Theory (INT) ................................................................................................................................................... 21
3.2.1 Overview of INT ............................................................................................................................................................. 22
3.2.2 Where INT has been used ......................................................................................................................................... 22
3.2.3 Reasons for not selecting INT .................................................................................................................................. 22
3.3 Technology, Organization and Environment Framework (TOE) ....................................................................... 22
3.3.1 Overview of TOE Framework .................................................................................................................................. 23
3.3.2 Where TOE has been used ........................................................................................................................................ 25
3.3.3 Reasons for selecting TOE ......................................................................................................................................... 25
3.4 Conceptual Framework - Application of TOE Framework .................................................................................... 26
3.4.1 Technology Context ..................................................................................................................................................... 26
3.4.2 Organization Context................................................................................................................................................... 27
3.4.3 External Task Environment Context .................................................................................................................... 28
3.5 Conclusion................................................................................................................................................................................... 29
4 RESEARCH METHODS ..................................................................................................................................................................... 29
4.1 Research Paradigm ................................................................................................................................................................. 29
4.2 Research Approach ................................................................................................................................................................. 30
4.3 Research Design ....................................................................................................................................................................... 30
4.4 Research Strategy .................................................................................................................................................................... 30
4.5 Data Collection .......................................................................................................................................................................... 31
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4.5.1 Collection Method ......................................................................................................................................................... 31
4.5.2 Sampling ........................................................................................................................................................................... 32
4.6 Data Analysis ............................................................................................................................................................................. 33
4.6.1 Analysis Method ............................................................................................................................................................ 33
4.6.2 Content Analysis Process .......................................................................................................................................... 33
4.7 Quality & Trustworthiness .................................................................................................................................................. 34
4.7.1 Credibility ......................................................................................................................................................................... 34
4.7.2 Dependability ................................................................................................................................................................. 34
4.7.3 Transferability................................................................................................................................................................ 35
4.7.4 Confirmability ................................................................................................................................................................. 35
4.8 Ethical considerations ........................................................................................................................................................... 35
4.9 Conclusion................................................................................................................................................................................... 36
5 FINDINGS .............................................................................................................................................................................................. 36
5.1 Process ......................................................................................................................................................................................... 37
5.2 Respondents .............................................................................................................................................................................. 37
5.3 Digital Transformation .......................................................................................................................................................... 38
5.3.1 Key Areas Impacted by DT ........................................................................................................................................ 39
5.3.2 How the key areas are impacted by DT .............................................................................................................. 40
5.4 e-Commerce Environment .................................................................................................................................................. 43
5.4.1 Retail e-Commerce Industry in SA ........................................................................................................................ 43
5.4.2 Retail e-Commerce Competitive Landscape ..................................................................................................... 45
5.4.3 Organization’s Standing in Competitive Landscape ...................................................................................... 47
5.5 DT Leadership ........................................................................................................................................................................... 49
5.5.1 Role of Leadership in DT ........................................................................................................................................... 49
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5.5.2 Key elements of leadership important for DT .................................................................................................. 50
5.5.3 Role of leadership in DT ............................................................................................................................................. 50
5.6 DT Strategy ................................................................................................................................................................................. 53
5.6.1 Role of strategy in DT .................................................................................................................................................. 53
5.6.2 Key elements of an effective DT strategy ........................................................................................................... 54
5.6.3 How key elements play a role in the implementation of DT ...................................................................... 55
5.6.4 DT Strategy to Overall Business Strategy Alignment .................................................................................... 57
5.7 Technology as an enabler for DT ...................................................................................................................................... 58
5.7.1 Technology or Organizational Transformation? ............................................................................................. 58
5.7.2 Organization’s Current Digital Technologies.................................................................................................... 59
5.7.3 Transformation Areas ................................................................................................................................................. 61
5.8 Digital Workplace Skills ........................................................................................................................................................ 63
5.8.1 Role of Workplace Skills in DT ................................................................................................................................ 63
5.8.2 Organization’s Current Digital Workplace Skills ............................................................................................ 65
5.8.3 Level of and Sufficiency of Organization’s Digital Workplace Skills ...................................................... 65
5.8.4 Interventions .................................................................................................................................................................. 66
5.9 Workplace Culture .................................................................................................................................................................. 68
5.9.1 Role of Workplace Culture in DT ........................................................................................................................... 68
5.9.2 Organization’s Current Workplace Culture ....................................................................................................... 69
5.9.3 Suitability of Organization’s Current Workplace Culture for DT ............................................................. 70
5.9.4 Interventions .................................................................................................................................................................. 71
5.10 Summary of Findings ............................................................................................................................................................. 73
5.11 Conclusion................................................................................................................................................................................... 73
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6 Discussion ............................................................................................................................................................................................. 74
6.1 Digital Transformation .......................................................................................................................................................... 74
6.2 Technology context ................................................................................................................................................................. 75
6.3 Organization Context ............................................................................................................................................................. 76
6.3.1 DT Leadership ................................................................................................................................................................ 76
6.3.2 DT Strategy ...................................................................................................................................................................... 77
6.3.3 Technology as an Enabler for Transformation ................................................................................................ 79
6.3.4 Digital Workplace Skills ............................................................................................................................................. 79
6.3.5 Digital culture ................................................................................................................................................................. 81
6.4 External Task Environment ................................................................................................................................................ 83
6.4.1 e-Commerce Industry ................................................................................................................................................. 83
6.4.2 e-Commerce Competition ......................................................................................................................................... 84
6.4.3 e-Commerce Regulatory Framework ................................................................................................................... 84
6.5 Conclusion................................................................................................................................................................................... 85
7 conclusion, LIMITATIONS AND FUTURE RESEARCH ........................................................................................................ 85
7.1 Reflecting on Technology Context .................................................................................................................................... 85
7.2 Reflecting on Organization Context ................................................................................................................................. 85
7.3 Reflecting on External Environment Context ............................................................................................................. 87
7.4 Reflecting on Successful Retail Digital Transformation in South Africa ......................................................... 88
7.5 Research implications ........................................................................................................................................................... 88
7.5.1 Theoretical ....................................................................................................................................................................... 88
7.5.2 Practical ............................................................................................................................................................................. 89
7.6 Limitations .................................................................................................................................................................................. 89
7.7 Future Research ....................................................................................................................................................................... 89
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8 REFERENCES ....................................................................................................................................................................................... 90
9 APPENDICES ........................................................................................................................................................................................ 97
Appendix A- Interview guide ............................................................................................................................................................. 97
Appendix B – Ethics Forms ................................................................................................................................................................. 99
B-1 Participant Information Sheet ............................................................................................................................................. 99
B-2 Participant Consent Form .................................................................................................................................................. 100
B-3 Company Permission ............................................................................................................................................................ 101
Appendix C – Sample Interview Transcript .............................................................................................................................. 102
Appendix D – Ethics clearance ....................................................................................................................................................... 116
Table of Figures
Figure 1: The hermeneutic circle adapted from Boell & Cecez-Kecmanovic (2010) ........................................................ 5
Figure 2: e-Commerce value chain adapted from Goga et al., 2019.......................................................................................... 8
Figure 3: Mindmap of DT factors ............................................................................................................................................................ 18
Figure 4: TAM theoretical framework adapted from Venkatesh and Bala (2008) .......................................................... 20
Figure 5: TOE framework adapted from Tornatzy and Fleischer (1990) ............................................................................ 23
Figure 6: Conceptual Framework based on TOE framework adapted from Tornatzky and Fleischer (1990) ... 26
Table of Tables
Table 1: Literature search table adapted from Teichert (2019) ................................................................................................ 7
Table 2: Summary of respondents ......................................................................................................................................................... 38
Table 3: Summary of main findings ...................................................................................................................................................... 73
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List of Acronyms
CF Conceptual Framework
DOI Diffusion of Innovation
DT Digital Transformation
e-Business Electronic Business
e-Commerce Electronic Commerce
e-Health Electronic Health
e-Government Electronic Government
e-readiness Electronic readiness
ERP Enterprise Relational Planning
INT Institutional Theory
IoT Internet of Things
PEOU Perceived Ease of Use
PU Perceived Usefulness
SA South Africa
TAM Technology Acceptance Model
TOE Technology, Organization and Environment Framework
TPB Theory of Planned Behaviour
TRA Theory of Reasoned Action
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1 INTRODUCTION
1.1 Background
According to Banda (2021) and Mahmood, Khan and Khan (2019), Digital Transformation (DT) occurs when
organizations include digital technologies in their product offerings, strategy development and business
processes to improve their competitive advantage by bettering their customer service and interaction with
their workforce. Gurbaxani and Dunkle (2019) extend the definition to include the vision, structures,
capabilities and organizational culture needed to stay abreast of the new, evolving and compelling business
digital landscape. While organizations may undertake DT for different reasons, according to Banda (2021),
Eden, Casey, Burton-Jones and Draheim (2019) and Gurbaxani and Dunkle (2019) the most common reasons
are to improve customer experience, become more agile, increase speed of innovation, reduce operating costs,
increase competitiveness and people performance.
According to Mugge, Abbu, Michaelis, Kwiatkowski and Gudergan (2020) and Teichert (2019), DT is not a once-
off process, rather is an ongoing progression of transformation enabled by digital capabilities with technology
implementation being only the beginning. According to Kane (2019), a DT approach that focuses only on digital
capabilities is unlikely to succeed as organization wide transformation that involves leadership (Kazim, 2019;
Sainger 2018), strategy development (Eden et al., 2019; Mahmood et al, 2019), workforce transformation
(Eden et al. 2019) and a culture shift (Gurbaxani & Dunkle, 2019) are also required.
Gurbaxani and Dunkle (2019) argue that successful implementation of DT is a concern for organizational
leaders globally. Mahmood et al. (2019) contend that as DT is complex and riddled with ambiguity, many
challenges and unexpected tasks can occur, which often results in staggering failure rates with more than 60%
of DT programmes not delivering on benefits promised (Correani, De Massis, Frattini, Petruzzelli & Natalicchio,
2020; Wilcocks, 2021). Kazim (2019) claims these high failure rates limit the potential benefits that DT can
offer. To counter these concerns, Gurbaxani and Dunkle (2019) propose organizations need a DT framework
that broadly covers the strategy, technology, workforce and culture aspects, so that organization wide
transformation efforts can be managed.
According to Mahmood et al. (2019), Kokolek, Jakovic, and Curlin (2019) and Teichert (2019) the importance
of implementing DT successfully to unlock competitive advantage is reflected by top-quality journals calling
for papers which demonstrate an interest in the subject. Furthermore, Gurbaxani and Dunkle (2019) contend
DT is crucial as it enables organizations to survive in this digital era where DT is a source of competitiveness.
Technology developments are influencing the way economies function and e-Commerce is one important
component of the wider economy’s DT which impacts on how businesses operate (Goga et al., 2019). According
to Mubako (2017), increasing customer expectations, globalization and consolidation together with declining
economic prospects are pressurizing retailers to reconsider their operating models with DT being considered
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as a crucial path to remaining competitive. While the rising middle class on the African continent is creating an
opportunity for retailers to leverage new digital markets as means to respond to market changes and stay
competitive in this digital era, South African (SA) retailers have been slow to digitally transform their
operations, with only 43.9% of large conglomerates in SA planning to have a digitally centred enterprise
strategy (Mubako, 2017). Mubako (2017, 2017b) claims within the SA retail industry there is also a scarcity of
theoretical and empirical research with merely two papers for DT in the retail context.
Retail involves the sale of products for household consumption (Masojata, 2022) and this research focussed on
general merchandise which is multi-product category (Goga, Paelo & Nyamwena, 2019). Mubako (2017,
2017b) and Goga et al. (2019) contend that even though the SA online retail market has been slow in
comparison to its western counterparts, there are still opportunities for SA retailers to leverage the benefits
thereof through implementing DT successfully. According to Mubako (2017, 2017b), it is imperative for
executives to leverage DT to deliver more value in their businesses, to build digital enterprises in the process
and avoid the rising financial losses due to the inability to compete in the digital marketplace. Goga et al. (2019)
claim that even though traditional challenges such as high data prices, poor quality internet and poor delivery
services - which make up the backbone of online retailing - have improved, cost of delivery, trust issues with
online payments and entrenched physical shopping habits are still major issues behind lagging online retail
growth (Goga et al., 2019; Masojata, 2022). However, according to Goga et al. (2019), these barriers are
improving with better internet speeds, increased mobile penetration and mobile device based shopping thus
making way for better growth. Furthermore, adoption of smartphones, increased use of data and expanding
omni-channel approaches are aiding growth (Accenture, 2019).
1.2 Research Problem
The growth of retail business is expected to be generated online (Goga et al., 2019). According to Mubako
(2017), retailers need to respond with new management requirements, capabilities and responsiveness so that
digital enterprises can be built to enable competitiveness in the digital market place. The DT market in the retail
sector, also commonly known as e-Commerce or online retail, is estimated to grow globally by $137.05 billion
during 2021-2025, progressing at a Compound Annual Growth Rate (CAGR) of almost 17% in this period
(Nasdaq, 2021). In SA, the retail industry accounts for approximately 15% of the Gross Domestic Product
(StatsSA, 2018) with online retail merely accounting for approximately 4% (Business Inside SA, 2021), which
is materially behind developed nations whose online retail contributes up to 20% (Goga et al., 2019). Despite
the small contribution currently being made by online retail in SA, Goga et al. (2019) claim that at an estimated
grow rate of 20-35%, expected to grow at CAGR of 15.4% in 2020 alone (Accenture, 2019), the growth far
exceeds traditional brick-and-mortar retail. This growth represents an important and growing industry sector
not only worldwide but also in SA where there is a notable trend of online retail making gains at the expense
of traditional brick-and-mortar (Business Inside SA, 2021) accompanied by a growing dependence on digital
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platforms and the data they provide (Goga et al., 2019). Yet, even with this growth potential, SA’s infrastructure,
traditional shopping habits and slow DT by retailers has inhibited growth (Goga et al., 2019; Mubako, 2017).
The scarcity of knowledge in retail (Mubako 2017, 2017b) is another problem, with only two papers available
in SA retail context specifically. While Dyk and Belle (2019) and Ferreira, Moreira, Pereira and Durã (2020)
focus on understanding DT in a South African context, Dyk and Belle (2019) seek to understand DT
phenomenon only in relation to available digital technologies and Ferreira et al. (2020) present an analysis of
key digital technologies for retail DT, they do not seek to understand DT holistically.
According to Mahmood et al. (2019) and Vey, Fandel-Meyer, Zipp and Schneider (2017), while DT is
fundamental for the realization of the Fourth Industrial Revolution (4IR), many unsuccessful implementations
exist. Kazim (2019) and Wilcocks (2021) argue that organizations are failing to attain benefits as DT is not only
complex to implement but also challenging with respect to the workforce, processes and technology (Mahmood
et al., 2019) as well costly (Correani et al., 2020). Therefore, to assist organizations in successfully
implementing DT so that they reap the related benefits and remain competitive in the digital economy, it is
important to understand the successful implementation of DT in the SA retail context.
1.3 Purpose of the study
DT is the cornerstone of competitiveness in this digital era (Gurbaxani & Dunkle, 2019) and with online retail
projected to provide double digit growth (Goga et al., 2019) at the expense of traditional brick-and-mortar
retail (Goga et al., 2019), it is crucial that retail organizations digitally transform in order to remain relevant
(Mubako, 2017). Therefore, this research aims to understand successful implementation of DT in a SA retail
organization.
1.4 Research Questions
As this research aims to understand successful implementation of DT in a SA retail organization, the main
research question is What does successful DT implementation in a SA retail organization entail? To answer the
main research question, the following sub-questions have been formulated:
1. What digital technologies are implemented in a retail DT and how do these influence DT?
2. How does the organizational context influence retail DT implementations?
3. How does the environment context influence DT?
1.5 Intended contribution of the study
The research aims to utilise the insights obtained to develop recommendations to assist practitioners in
successfully carrying out DT. Furthermore, as limited research has been conducted and published regarding
the South African retail context, the research aims to contribute to the knowledge base through carrying out an
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empirical study underpinned by a theoretical framework to understand DT as an organization wide
transformation process.
1.6 Delimitations of the study
This research focused on one large general merchandise retail organization in SA, a traditional brick-and-
mortar retailer in the process of DT. In addition, the organizational contexts identified in the literature were
assessed.
2 LITERATURE REVIEW
This section first describes the literature review method adopted, then outlines the applicable steps and
presents the literature search process. Thereafter, the relevant literature reviewed in relation to DT is
presented, with each of the common themes being detailed.
2.1 Hermeneutic Method
Literature reviews scrutinize and critically assess existing bodies of knowledge, in this research the DT domain,
with the aim of providing a basis to outline areas of weakness and a poorly understood phenomena (Boell &
Cecez-Kecmanovic, 2014). Additionally, Boell and Cecez-Kecmanovic (2014) define literature reviews as a
means of enabling problematization of assumptions and theoretical claims in an existing body of knowledge,
to help formulate research problems or research questions. The research adopted the hermeneutic method for
the literature review, as this allows for incremental development of understanding with knowledge being
acquired throughout the iterative process (Boell & Cecez-Kecmanovic, 2010; Geeling, Brown & Weimann,
2016).
Geeling et al. (2016) state that to develop understanding, there needs to be harmony between the whole and
its parts. Thus, the hermeneutic circle looks at the parts of the whole in the context of the whole and similarly
looks at the whole part in the context of the sum of its parts (Boell & Cecez-Kecmanovic, 2010; Geeling et al.,
2016). Understanding the whole is achieved through reading, while making sense of the individual parts is
achieved through iterative searching as knowledge is acquired with each successive search (Boell & Cecez-
Kecmanovic, 2010). Therefore, this iterative, open minded and evolving hermeneutic process was used to
facilitate a better understanding and deeper knowledge successful implementation of DT. Hermeneutic method
is suitable for this research as it facilitates an in-depth understanding of a particular topic, supports open ended
research questions which may evolve over the course of the research and it is grounded in theoretical
foundation and structured processes for the literature review process (Boell & Cecez-Kecmanovic, 2014). The
hermeneutic cycle followed is shown in Figure 1.
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Figure 1: The hermeneutic circle adapted from Boell & Cecez-Kecmanovic (2010)
2.1.1 Hermeneutic Processes used
The first step is to define criteria that can be used to search the literature in relation to the research problem,
while at the same time learning to identify more applicable sources of information out of which a big set of
publications will be generated (Boell & Cecez-Kecmanovic, 2014). In this research, while the initial search
criteria employed was “Digital Transformation” which is a broad term, this was not restricted to other criteria
such as challenges, issues or successes as these returned too few results on which meaningful search process
could be performed. The initial search was conducted on EBSCO-host and ProQuest, which returned 25 100
publications. Thereafter, when the same search was executed again, 11 104 publications were returned using
EBSCO-host only.
The second step is to sort/categorise search results by using criteria such as relevance rankings, dates of
publication or citations (Boell & Cecez-Kecmanovic, 2014). For this research, the date of publication was
restricted to last five years from 2016 to 2021 so that only the latest developments and current research for
DT were returned. Criteria of peer review or scholarly publications were also used to sort literature, resulting
in 4 180 publications. A further sort using publication type of academic journal and reviews with full text
available reduced the results to 2 325 publications. Thereafter, the sort for English language criteria returned
1 487 and a final sort on last five years returned 1 255 publications.
The third step involves selecting appropriate literature by assessing the title, reviewing the context of the
publication and reading the abstract (Boell & Cecez-Kecmanovic, 2014). For this research, the titles and
abstract were searched, thereafter, manually assessed together with conclusions to select those publications
whose context was relevant and therefore could be acquired for reading. A title and abstract search returned
368 publications, which was reduced to 333 following an automatic removal of duplicates. Lastly, a manual
assessment of title, abstract and conclusions resulted in 18 publications.
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The fourth step, according to Boell and Cecez-Kecmanovi (2014) requires acquisition of full texts of the selected
papers. This is often not a simple exercise as full texts may not be available for a myriad of reasons with
electronic availability being one of them (Boell & Cecez-Kecmanovic, 2014). To acquire full text, a search
criteria was applied to filter results with the full text available online. In this research, the acquisition of full
text was performed with the second step for sorting.
The fifth step requires reading to develop an understanding of the literature, which understanding can involve
taking notes to record ideas and concepts as they arise in the publications (Boell & Cecez-Kecmanovic, 2014).
Boell and Cecez-Kecmanovic (2014) assert that the reading process may lend itself to the identification of
additional literature sources and/or refinement of search strategies. To record the ideas, findings and concepts
this research employed the Okoli and Schabram (2010) concept centric matrix which organizes literature into
common themes. The most common themes recorded were DT leadership, DT strategy, Technology as an
enabler for transformation, digital workforce skills and digital culture.
The sixth step requires researchers to identify further search terms and these can be additional publications,
authors, journals, conferences and even other sources (Boell & Cecez-Kecmanovic, 2014).
The final step before the circle starts again is refining searches which involves search strategies that can be
used to improve the relevance of literature searches (Boell & Cecez-Kecmanovic, 2014). To refine results in this
research, full text publications were manually assessed to find publications that addressed DT implementation
issues, challenges and maturity in large organizations. The publications without references and those that
focused on digital technology as opposed to DT holistically, were excluded, resulting in a final list of 12
publications for literature review.
The steps described above form one iteration which was completed for this research.
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Table 1 summarizes the results of the hermeneutic review process followed.
Data
Source
Search process Search terms Hermeneutic
circle step
Criteria No. of
studies
EBSCO-host
ProQuest
Search date: 11th July
No date restriction
Digital
Transformation
Searching 25 400
EBSCO-host Search date: 20th July
No date restriction
Digital
Transformation
Searching 11 104
EBSCO-host Search date: 20th July
No date restriction
Digital
Transformation
Sorting Scholarly (Peer Reviewed) Journals 4 180
EBSCO-host Search date: 20th July
No date restriction
Digital
Transformation
Sorting
Acquiring
Source type includes academic journals, reviews,
Full text
2 325
EBSCO-host Search date: 20th July
No date restriction
Digital
Transformation
Acquiring English Language 1 487
EBSCO-host Search date: 20th July
Digital
Transformation
Sorting Time period restricted to the last five years from
20160101-20211231
1 255
EBSCO-host Search date: 20th July
TI digital
transformation and
AB digital
transformation
Selecting Title and Abstract search
System automatically removed duplicates
368
333
EBSCO-host Reading Manual Search through reading abstracts and conclusions 18
EBSCO-host Reading
Identifying
Refining
Full text assessment
Addresses DT implementation issues, challenges, maturity
in large organizations
Excluded articles, papers without references, papers
focused on digital technologies and post DT processes
12
Table 1: Literature search table adapted from Teichert (2019)
After identifying the applicable literature for review, the selected literature was reviewed.
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2.2 Online Retail
Retail involves the sales of products for consumption (Masojata, 2022) and the retail sectors are primarily
divided into Food, Clothing & Textiles, Consumer durables, Footwear, Jewellery, Books-Music-Gift articles and
fuel (Tutorialspoint, 2022). The SA retail landscape spans numerous chain stores (Masojata, 2022). These
retailers are general merchandise retailers operating across a broad range of product categories (Goga et al.,
2019). In SA, the retail industry accounts for approximately 15% of the GDP (StatsSA, 2018) and the growth of
retail business, according to Goga et al. (2019), is expected to be generated through online retail thus making
it an important area of retail.
Online retail, also commonly known as e-Commerce, entails the sale of tangible goods over online platforms
(Goga et al., 2019; Masojata, 2022). Online retail has three types: pure play retailers who trade online only;
omni-channel retailers who complement traditional brick-and-mortar stores with online platforms (Goga et al.,
2019; Masojata, 2022) and Marketplace which provides platform for other sellers to sell their products (Goga
et al., 2019).
e-Commerce has, according to Goga et al. (2019), revolutionized the retail market creating a wider reach of
customers, ability to personalize preferences, offer low prices and improve customer experience while
currently growing at a pace that far exceeds traditional retail. The e-Commerce ecosystem starts with selection
and ordering of products into the virtual shopping cart, followed by an online payment at checkout which is
facilitated through online payment gateways, thereafter the order is processed then dispatched and the last
step is delivery of the order to the customer via logistics or courier firms (Goga et al., 2019). The online retail
value chain comprises of customer insights, web-based platforms, supply of stock, management of inventory,
payment systems, warehousing and logistics which is illustrated on figure below.
Figure 2: e-Commerce value chain adapted from Goga et al., 2019
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2.3 Online Retail Environment
To contextualise the SA online retail environment, the e-Commerce industry, e-Commerce competition and e-
Commerce regulation are discussed, as well as the impact of the Covid-19 Pandemic.
According to Businesstech (2021) SA’s e-Commerce industry is expected to exceed R400 billion by 2025 fuelled
by more than one billion transactions per annum with online spending growing at 40 to 100% over the past 2
years. This growth exceeds all conservative estimates and it is accompanied by a steady upward growth in
transactions (Businesstech, 2021). The e-Commerce industry is growing at its fastest pace now more than
before (Kibuacha, 2021; Goga & Paelo, 2019; Goga et al., 2019). Kibuacha (2021) shows 60% of South Africans
are shopping online mostly for clothing, electronic devices, footwear, household appliances and health
products. Goga et al. (2019) notes that some of these categories are growing rapidly, while Goga and Paelo
(2019) support this, state that improvements in infrastructure will fuel further growth.
In terms of e-Commerce competition, according to Businesstech (2021), Goga and Paelo (2019) and Goga et al.
(2019) SA’s dynamic shift to e-Commerce has seen changes in the competitive landscape, allowing smaller
independent retailers to penetrate the market, however, larger retailers still dominate the market though they
face different cost and security barriers to the smaller retailers. Goga and Paelo (2019) contend that e-
Commerce removes high barriers to entry for small businesses and according to Goga et al. (2019), it lowers
their transaction cost and increases their market exposure. The e-Commerce shift has seen the rise of digital
numerous Marketplaces with traditional brick-and-mortar stores also showing up significantly online and
growing (Businesstech, 2021) using online sales as alternative channels (Goga et al., 2019). According to (Goga
et al., 2019) one retailer has emerged as the most prominent online retailer in SA followed one other retailer.
The e-Commerce Regulation refers to government dealings regarding e-Commerce in SA. According to Goga and
Paelo (2019), the rise of e-Commerce has not come without policy framework challenges and these challenges
are multi-dimensional ranging from competition, tax, trading, data security, intellectual property (IP) and
countries across the world are all battling with the same challenges. There remains questions about the nature
of regulatory framework required given the different policy types that impact on e-Commerce. There are
policies that facilitate e-Commerce provision and uptake such as supportive telecommunications and postal
policy, regulation of payment systems, digital promotion policies and e-Commerce industrial development
policies. There are also policies that determine the international implications and competitiveness of e-
Commerce for local industries and government (Goga & Paelo, 2019). Lastly, there are policies that prevent
consumer exploitation such as digital competition policy and policies related to consumer protection such as
data privacy and fraud protection in payment systems (Goga & Paelo, 2019). The collection, analysis and
tracking of consumer data elevates data privacy, as such retailers are responsible to manage data privacy
concerns beyond what government regulations dictate (Roggeveen & Sethuraman, 2020).
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Goga and Paelo (2019) and Goga et al. (2019) assert that it is a common concern the world over that while e-
Commerce provides opportunities to increase market access and a route to entry for small businesses, given
economies of scope and scale, e-Commerce also creates a risk to consolidate power for only a handful large e-
Commerce businesses. Accordingly, these businesses must be guarded through regulation from abusing their
dominance (Goga & Paelo, 2019).
According to Goga and Paelo (2019) and Goga et al. (2019) the e-Commerce market in SA is not yet mature and
there exists no single e-Commerce platform or Marketplace with a dominant position in terms of the
Competition Law, as such government needs to be sensible of regulating too early and stifle the local market
growth and development. This situation is not unique to SA only, in developed countries regulations and
policies that relate to e-Commerce are in developing stages (Goga & Paelo, 2019; Goga et al., 2019).
Covid-19 catapulted the rate of change of technology changes and the retail business sector was among the
most impacted (Roggeveen & Sethuraman, 2020). The Covid-19 Pandemic influenced people’s daily routine
significantly, in retail, what consumers prioritize changed, services’ touch points were impacted and business
process alike, in fact, all stakeholders in the retail value chain had to relook their ways of working to survive
the pandemic (Jiang & Stylos, 2021). These lifestyle changes by consumers impacted the customer journey and
how they engage with retail technology (Roggeveen & Sethuraman, 2020). According to Jiang and Stylos
(2021), digital technologies were key to keeping retailers operational as they changed their ways of accessing
consumers. Increasing in popularity, are technology tools that enabled mobile ordering, order tracking, pick-
up and delivery options (Roggeveen & Sethuraman, 2020). It is evident that Covid-19 Pandemic played a
significant role to influence retailers’ digital response and customer’s expectations alike.
2.4 Digital Technologies
According to Hopping (2000), Jiang and Stylos (2021) and Mimoun, Miltgen and Slama (2022), digital
technologies play a significant role as an enabler for DT in retail. Advancements in technologies are responsible
for the intense competition within the retail industry (Moorhouse, Dieck & Jung, 2018), equally for the changing
consumer shopping patterns as their expectations also increase phenomenally (Hopping, 2000; Mimoun et al.,
2022; Moorhouse et al., 2018). Technologies are changing the retail industry (Mimoun et al., 2022), similarly
technologies present a threat for retailers who are slow to embrace DT (Hopping, 2000). According to Hopping
(2000), it is the convergence of technologies and the will to change that is creating an opportunity for
transformation of retail. Digital technologies offer retailers the opportunity to adapt in an environment
changing at fast pace (Jiang & Stylos, 2021).
According to Jiang and Stylos (2021), Digital Technology presents retailers with many options, from social
media platforms, robots, mobile-applications to wearables, crypto-currencies and Block-chain. The global
trend in mobile devices and social media is leading the revolution that is responsible for slowing traditional
brick-and-mortar retail, as such traditional retailers are faced with pressure to respond to the digital revolution
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and connect with the digital generation (Moorhouse et al., 2018). Technology enables retailers to be better
intermediaries, improving management of stock as technology provides better supply and demand
information, owing to data transfer storage and analytic capacity made possible by integrated software,
telecoms and modern computing power (Niemeier, Stefan & Marco, 2013). Technologies like the Web and
electronic data interchange (EDI) raised fundamental questions about the role of retailers as intermediaries
but also the overall impact e-Commerce will have on traditional brick-and-mortar (Hopping, 2000).
Marketplaces which are made possible by the Internet, can now leverage digital technology like shopping
robots, virtual agents to assists consumers to find what they need by performing searches over various
products on offer (Hopping, 2000). Some of the technologies revolutionizing retail are Pervasive Computing
which includes Personal Digital Assistants (PDAs) which exchange data with back-office systems changing the
manner in which information is managed across the supply chain, these multifunction portable devices can be
used as workstations, point-of-sale devices, receiving inventory and dispatching, elevating economics of
information for retailers (Hopping, 2000). Mobile channels including mobile apps and devices, in-store
technologies, augmented and virtual reality applications, various bots and social media are diminishing the
boundaries between the physical and online stores (Mimoun et al., 2022), in so doing, serving the needs of
consumers and achieving the goals of retailers (Jiang & Stylos, 2021). According to Jiang and Stylos (2021),
while the fifth generation wireless technology improves communications with consumers and deliveries
thereof, the automated delivery robots and drone deliveries increase the adoption of Artificial Intelligence (AI)
in retail. Other technologies like cross-docking, automated self-checkout, Radio Frequency Identification
(RFID), Biometric identification and payment systems attached to shopping carts enable retailers to either save
costs and/or enhance the customer service experience (Roggeveen & Sethuraman, 2020).
2.5 Digital Transformation
DT is changing our understanding of doing business, of learning and development in a fundamental way and
with unrivalled speed (Vey et al., 2017). DT is realised through the implementation of new technologies such
as Cloud Computing, Internet of Things (IoT), Big Data, Cloud Enterprise Relational Planning (ERP), AI and has
emerged as the Fourth Industrial Revolution (4IR) (Mahmood et al., 2019). According to Banda (2021) and
Mahmood et al. (2019), DT occurs when organizations include digital technologies in their product offerings,
strategy development and business processes to improve their competitive advantage by bettering their
customer service and interaction with their workforce. DT refers to how an organization transforming its core
business processes, using digital technology to improve into all areas of a business and fundamentally changing
how organizations operate effectively and deliver value to customers (Mahmood et al., 2019). Gurbaxani and
Dunkle (2019) extend the definition to include the vision, structures, capabilities and the organizational culture
needed to stay abreast of the new, evolving and compelling business digital landscape.
DT is an evolutionary process that leverages digital capabilities and technologies to enable business models,
operational processes and customer experiences, to create value starting with the adoption and use of digital
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technologies then evolving into an implicit holistic transformation of an organization (Teichert, 2019).
According to Mugge et al. (2020) and Teichert (2019), DT is not a once-off process, but rather an ongoing
progression of transformation enabled by digital capabilities with technology implementation being only the
beginning. Mahmood et al. (2019) claim that DT, which occurs with the introduction of digital technologies,
demands fundamental change in organization processes, technology and behaviour of the people.
Gurbaxani and Dunkle (2019) contend that the success of organizations today depends on their ability to
exploit DT. Organizations must ensure that they have the appropriate technology capabilities and talent, build
a culture that enables change (Gurbaxani & Dunkle, 2019) underpinned by leadership (Kazim, 2019; Sainger
2018) and a clear strategy (Eden et al., 2019; Mahmood et al, 2019).
2.6 Benefits of DT
The benefits for DT occur at multiple levels but are primarily premised on creating competitive advantage for
organizations (Banda, 2021; Eden et al., 2019; Gurbaxani & Dunkle, 2019). DT compels organizations to
transform end-to-end by leveraging digital technologies to transform their operations (Erceg & Zoranovic,
2020; Gurbaxani & Dunkle, 2019; Mahmood et al., 2019) which offers many benefits for organizations.
As organizations digitally transform their operations, they improve customer services by offering new customer
value propositions (Mahmood et al., 2019). DT enables organizations to become agile, which in turn assists
organizations in becoming responsive to market changes (Banda, 2021; Eden et al., 2019; Gurbaxani & Dunkle,
2019). In addition, DT helps organizations to increase their speed of innovation, ultimately creating capability
to be able to respond and adapt to a fast-changing digital landscape (Banda, 2021; Eden et al., 2019; Gurbaxani
& Dunkle, 2019). Furthermore, DT helps organization to reduce operating costs (Banda, 2021; Eden et al., 2019;
Gurbaxani & Dunkle, 2019) and offer improved operating environment with digital business processes (Erceg &
Zoranovic, 2020; Gurbaxani & Dunkle, 2019; Mahmood et al., 2019).
With DT, organizations improve the way they interact with their workforce (Mahmood et al., 2019) which helps
organizations to improve their people’s performance (Banda, 2021; Eden et al., 2019; Gurbaxani & Dunkle,
2019) and a create a digital workplace culture characterized by adaptability and responsiveness (Erceg &
Zoranovic, 2020; Gurbaxani & Dunkle, 2019; Mahmood et al., 2019).
However, the myriad of benefits of digitally transforming an organization do not come without challenges.
2.7 Challenges of DT
While there are multiple benefits associated with DT, challenges are pervasive, with an estimated 70% failure
rate for DT projects (Mahmood et al, 2019). Some of the leading challenges are integration and acceptance of
the new digital technologies (Kokolek et al., 2019); the complexity of DT in terms of people, process and
13 | P a g e
technology (Mahmood et al, 2019); the complicated, ambiguous, and non-routine managerial tasks for
organizations that occur as a result (Mahmood et al., 2019) and poor leadership (Kazim, 2019).
If management is unaware of an effective strategy or organizations do not have any strategy which covers
transformation holistically, it creates a challenge for DT (Mahmood et al., 2019). When companies focus on the
digital technology, it derails from the overall transformation of the organization (Teichert, 2019). According to
Kane (2019), a DT approach that focuses only on digital capabilities is unlikely to succeed as organization wide
transformation that involves leadership (Kazim, 2019; Sainger 2018), strategy development (Eden et al., 2019;
Mahmood et al, 2019), workforce transformation (Eden, et al. 2019) and a culture shift (Gurbaxani & Dunkle,
2019) is also required.
With DT being a relatively new phenomena organizations are challenged with supply of digital competencies,
which are the skills, knowledge and attitude required to execute the necessary new processes (Vey et al., 2017).
According to Vey et al. (2017), these digital skills required are in short supply and take time to develop.
A conducive organizational culture is required to enable DT. However, according to Teichert (2019), Vey et al.
(2017) and Eden et al. (2019), company culture is seen as the first deterrent towards DT which significantly
hampers any digital efforts and as such changes to organizational culture are an antecedent for implementing
DT successfully.
Leadership is critical for DT success (Sainger, 2018) and unfortunately poor leadership has regrettably resulted
in some catastrophic failures due to complexity that leaders are required to navigate. Kazim (2019) claims that
lack of DT leadership is the primary reason behind some catastrophic failures together with the inability to
change the status quo inside the organization which fundamentally cannot remain when undertaking DT.
The challenge for organizations is to find the right balance on all aspects of DT in order to manage these
challenges and ensure success.
2.8 Implementing successful DT
For organizations to implement DT successfully it requires a DT framework that broadly covers strategy,
technology, workforce and culture aspects to manage the organization wide transformation efforts (Gurbaxani
& Dunkle, 2019). An organization wide transformation that involves leadership (Kazim, 2019; Sainger 2018),
strategy development (Eden et al., 2019 & Mahmood et al, 2019), workforce transformation (Eden, et al. 2019)
and culture shift (Gurbaxani & Dunkle, 2019) is pivotal as a DT approach that focuses only on digital capabilities
is unlikely to succeed with implementing DT (Kane, 2019). Eden et al. (2019) state that prior to DT, the digital
skills required may not exist, the digital culture conducive for DT may not exist, the roles and responsibilities
may not exist, as such DT will bring these about resulting in a workforce transformation without which DT
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cannot succeed. Thus, it is important to view DT beyond technological capabilities if the transformation is to be
successful.
A literature review by Eden et al. (2019), Kazim (2019), Gurbaxani and Dunkle (2019), Mahmood et al, (2019),
Nnzeru (2021), Sainger (2018), reveals five key themes that influence the successful implementation of DT in
organizations. These can be summarized as organizations needing to have 1) a DT programme with leadership
(Kazim, 2019; Sainger 2018); 2) a clear articulated and effective strategy (Eden et al. 2019; Mahmood et al,
2019); 3) a transformation agenda enabled by digital technology instead of putting technology first (Mugge et
al., 2020); 4) requisite digital skills; and 5) a dynamic digital culture conducive for change (Gurbaxani & Dunkle,
2019).
2.8.1 DT Leadership
According to Kazim (2019), leadership is critical for DT and poor leadership has regrettably resulted in some
catastrophic failures given the complexity that leaders are required to navigate. Sainger (2018) supports this,
alluding to the criticality of leadership for successful DT. Kazim (2019) adds that lack of DT leadership is the
primary reason DT is not implemented successfully combined with the inability to change the status quo inside
the organization which fundamentally cannot remain when undertaking DT.
There are effective styles of leadership, characteristics and traits that are conducive for the successful
implementation of DT and these include Technology entrepreneurship, transformative leadership style and
authenticity (Kazim, 2019). As such, DT Leadership requires leaders to communicate effectively and to
collaborate while using a top-down leadership approach (Kazim, 2019). Which, according to Erceg and
Zoranovic, (2020), calls for professionalism, persistence to overcome employee resistance, change
management and above all agility more technology astuteness.
According to Sainger (2018), DT leadership requires leaders to put the right people, processes, technology,
engagement models, structures and business model to drive their DT vision for the organization. Meaning that
leadership must build cooperation between generational gaps in their organization, align strategy with
operations, attract talented people and embed transformation using relationship focused style leadership
(Kazim, 2019). For leaders to implement DT successfully they must navigate DT through influence and not
merely rely on positional power to get buy-in into the process, without which there maybe resistance from
employees to embrace the changes.
Leaders must have agreed corporate objectives and ensure the DT agenda aligns to these objectives including
business activities, people, work culture and the organizational structure (Sainger, 2018). According to Sainger
(2018) and Eden et al. (2019), leaders ought to foster a new culture, an environment that enables DT and
develop new business models leveraging technological capabilities as enablers to equip the workforce for
change whilst understanding, closing the workforce skills and competencies gap (Kazim, 2019; Sainger, 2018)
15 | P a g e
and using HR processes to upskill, recruit and reorganize. Leaders need to prepare their workforce for
successful implementation of DT (Eden et al., 2019). Furthermore, Eden et al. (2019) demonstrate in their
longitudinal case study that building a cultural foundation not only prepares the workforce for DT but also
improves the DT process.
The personal characteristics, style and ability to lead from the front on all DT related issues is key to
implementing DT successfully as well as agency for change. Ultimately, leadership is the foundation
organizations needs to implement DT successfully. The subsequent themes will only be made possible if there
is leadership that recognizes the need and lead accordingly.
2.8.2 DT Strategy
The development of an effective DT strategy is important in organizations and ought to be proactive regarding
people, processes and technology including how they align to corporate goals (Mahmood et al., 2019). Mugge
et al. (2020) affirm this, stating that a DT vision and strategy must be part of everything the organization does.
According to Banda (2021), a DT strategy will position organizations to move from mere survival to thriving in
a future of technology-based economies.
According to Kazim (2019), a strategy cannot be effective if leadership does not communicate relentlessly
organization wide. For DT efforts to be successful and progress at desirable pace, leaders must be relentless
when it comes to communication, this not only draws support for DT, but minimizes resistance from employees
and helps articulate the value of DT which improves understanding of DT (Mugge et al., 2020). This assertion
is supported by findings from organizations with digital maturity which display transparent and open
communication across their organizations (Mugge et al., 2020). If leaders are consistent and coherent in their
communication efforts, it will demystify the complexities and ambiguities of DT implementation, helping to
obtain buy-in from stakeholders for the process. Mahmood et al. (2019) attribute an effective strategy for DT
as critical for success or failure. The articulation of a clear strategy is important for DT, the strategy has to be
all encompassing in the organization and be communicated top-down in order to be effective in DT.
2.8.3 Technology as an enabler for DT
According to Mugge et al. (2020), DT is not about technology but rather about transformation in the
organization and leaders have to act as pioneers for the transformation in order for DT to be implemented
successfully (Sainger, 2018). Mugge et al. (2020) and Teichert (2019) claim that DT is an ongoing process of
transformation enabled by digital capabilities, with the implementation of digital technologies being the start
of a journey which requires organization wide transformation to be successful. According to Kane (2019) and
Sainger (2018), a DT approach that focuses only on digital capabilities is unlikely to succeed when
implementing DT.
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When leveraging digital technologies to create and capture value, Gurbaxani and Dunkle (2019) state that
leaders must have the foresight to plan for technology changes and understand its full impact across the
organization, in order to remain relevant in the market and competitive in a fast changing digital environment.
According to Eden et al. (2019), Kazim (2019), Kokolek et al. (2019), Sainger (2018), Schiuma et al. (2021) and
Teichert (2019) technology is an enabling vehicle for DT, enabling organizations to transform their workforce,
projects and the organization at large into adaptable entities. In order for organizations to implement DT
successfully, they must redesign their customer value offerings and transform their businesses using digital
technology to better serve the customers and create competitive advantage (Teichert, 2019). According to Eden
et al. (2019), DT is intertwined with workforce transformation and as such DT cannot be separated from the
transformation of the workforce. The keywords ’leveraging’ and ’using’ technology in these findings emphasize
that technology is not synonymous with DT, but an important enabler for the process without which
organizations cannot transform digitally.
Eden et al. (2019) recommend a unique approach to develop a project management and optimization forum,
for the purpose of deliberating and agreeing on improvements required following implementation of digital
technology as an effective way to embed the technology and reduce employee resistance. This approach further
demonstrates the focus on the people and processes during DT as the forum formed comprised of business
process champions and technology teams in order to reap the benefits thereof.
Therefore, technology should not be end goal for DT, but it is an important enabler (Nnzeru, 2021) that must
be leveraged for DT success.
2.8.4 Digital Workforce Skills
The importance of workforce in DT cannot be underestimated. Workforce plays an important role in the
successful implementation of DT and while this area needs focus it has often been overlooked (Sainger, 2018).
According to Vey et al. (2017), it does not suffice for organizations to have a clarity with vision and agility only
to overcome DT challenges but both leaders and employees must be equipped with competencies required to
work with digital processes. This requires organizations to create environments conducive for learning and
nurturing of digital skills (Vey et al., 2017).
According to Mugge et al. (2020) organizations must support training efforts and each department objectives
must be linked to the achievement of their digital capabilities. Sainger (2018) adds that organizations need to
invest in both formal and informal learning experiences to address the workforce skill gap. Furthermore, Erceg
and Zoranovic (2020) state that collaborating with external service providers allows organizations to build
capacity and capability for DT given that the skills and competencies needed are in short supply and require
time to develop.
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A digital workforce is important for successful implementation of DT, can become a new source of
competitiveness and thus recognizing the workforce skills gaps and implementing necessary interventions to
develop requisite skills to create a digital enabled organization helps organization to succeed with DT
implementation (Sainger, 2018).
2.8.5 Digital Culture
Organizational culture plays an important role in the successful implementation of DT, to this end it can be a
barrier or an enabler for DT and organizations are recognizing this (Teichert, 2019). According to Teichert,
2019; Vey et al., 2017 and Eden et al., 2019, company culture is seen as the first deterrent towards DT which
significantly hampers any digital efforts and as such changes to organizational culture are an antecedent for
implementing DT successfully.
According to Teichert (2019), Eden et al. (2019), Erceg and Zoranovic (2020), Sainger (2018) and Vey et al.
(2017) organizations need a culture that is characterized by adaptability and responsiveness to changes in the
environment. Erceg and Zoranovic (2020), Kazim (2019), Mugge et al. (2020) and Teichert (2019) add that
digital innovations require collaboration and engagement approach focused on empowering people and change
towards a digital culture. The culture of engagement and collaboration, according to Mugge et al. (2020), should
not be limited to inside the organization but requires external focus for key partners as part of the business
model. Erceg and Zoranovic (2020) claim that digital leaders ought to nurture a digital culture which is founded
in continual learning, adaptability and innovativeness. The Learning and Development (L&D) function becomes
critical as a facilitator for DT in shaping a culture of innovation and learning while treating DT as transformation
(Vey et al., 2017) and supporting the organization through the changes.
Vey et al. (2017) and Eden et al. (2019) emphasize the importance of starting with internal transformation
when the organizational culture and structures are not flexible and agile to facilitate successful implementation
of DT. Organizations that undertake this culture shift early on reap the dividends during DT, evidently Eden et
al. (2019) found that a foundation in digital culture facilitates DT and enables the leaders to prepare the
workforce for successful implementation of DT. According to Eden et al. (2019), digital culture as a foundation
will not only prepare an organization and its people for DT but also improve the process.
The significance of culture, claims Teichert (2019) is demonstrated in the significant role it plays in general
digital maturity models with other “soft” dimensions required for DT like leadership, vision and innovation
having a lesser influence. In contrast, Kazim (2019), Mugge et al. (2020), Sainger (2018) and Schiuma, et al.
(2021) argue that leadership is the most significant. Whilst authors may disagree on which of these factors
play a more important role than the other in the implementation of successful DT, it appears that they
fundamentally contribute to success, with organizations which focus on these dimensions likely to improve
their chances of success with implementation of DT.
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Figure 3 provides a graphical depiction of the mind map detailing key factors for successful DT leadership as
discussed in the literature.
Figure 3: Mindmap1 of DT factors
2.9 Conclusion
This chapter described the literature review method adopted, outlined the applicable steps and presented the
literature search process employed. The relevant literature reviewed for DT was presented, with each of the
identified factors being detailed.
Using the literature reviewed and the identified factors, the next section presents possible theoretical
frameworks to be used to underpin and guide the data collection and analysis for the proposed study.
1 This mind map will be used to frame questions for the research instrument to help understand how these
themes apply in SA context.
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3 CONCEPTUAL FRAMEWORK
This section first provides a brief overview of why a conceptual framework (CF) is needed to conduct empirical
studies. Thereafter, possible CFs are presented. Lastly, the CF selected as most suited for this study is detailed,
along with an overview of how the CF was applied for the DT phenomenon.
According to Varpio, Paradis, Uijtdehaage and Young (2020), a CF is useful for outlining the methodological
underpinnings of a research project. Lederman and Lederman (2015) wrote that CFs are important for all
research regardless of the method employed and argue CFs are necessary in order justify the significance of
the research. Whilst Varpio et al. (2020) claim that there is a distinction between the theoretical framework
and conceptual framework, however, they are often used interchangeably. Within this study the CF was used.
To apply a CF in research, Varpio et al. (2020) contend that the researcher first needs to choose which theory
or theories that can be used as the lens for their particular study. Thereafter, the researcher transforms the
theory into a CF that describes how the theory guides the research questions, the concepts that will inform the
design of the study, the decision on the methodology, the methods of data collection, the interactions with
respondents, the method for data analysis and the conclusions which will be drawn (Varpio et al., 2020).
Against this background three possible CFs are presented and assessed: the Technology Acceptance Model
(TAM); Institutional Theory (INT) and Technology, Organization and Environment (TOE) Framework.
3.1 Technology Acceptance Model (TAM)
The Technology Acceptance Model (TAM) was identified as a possible theory due to its wide application in IS
for studying end-user adoption and use of technology (Venkatesh & Bala, 2008). Venkatesh and Bala (2008)
developed an integrated TAM framework which has been validated and consistently found to explain IT
adoption based on parsimonious relationships among ease of use, usefulness and intention to use. According
to Venkatesh and Bala (2008), TAM consistently explains about 40% of the variance in individuals’ intention
to use an IT and actual usage. TAM is a highly effective model for predicting users’ behaviour for IT adoption
(Chen, 2019). Many studies have found TAM to provide a strong conceptual and empirical evidence making it
a well validated behavioural decision-making model (Lust, Elen & Clarebout, 2012). Using psychological factors
to explain technology adoption, TAM reflects the influence of Theory of Reasoned Action (TRA) predicting
behavioural intention and Theory of Planned Behaviour (TPB) then extends TRA to include perceived
behaviour control (Chen, 2019).
3.1.1 Overview of TAM
TAM represents a cumulative body of knowledge using determinants of IT usage; perceived usefulness (PU)
and perceived ease of use (PEOU) (Venkatesh & Bala, 2008). According to Chen (2019), TAM posits that users’
IT adoption behaviour will be influenced by the degree to which a person believes using IT enhances the activity
required – PU - and the degree to which a person believes using IT would be free of effort – PEOU - respectively
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(Lust et al., 2012; Venkatesh & Bala, 2008). PU and PEOU have four characteristics which are: 1) individual
difference which are variables which include personality and/or demographics that can influence individuals’
perceptions of PU and PEOU; 2) systems characteristics which are the salient features of a system that can help
individuals develop un/favourable perceptions regarding PU and PEOU; 3) social influence are the social
processes and mechanisms that guide an individual to formulate perceptions of various aspects of an IT and 4)
facilitating conditions which are the organization support that facilitates use of IT (Venkatesh & Bala, 2008).
In addition, PU is concerned with Social Influence and System characteristics. The factors for Social influence
are Subjective Norm and Image which is the degree that influential people think he should or should not use
the system and the use of IT will enhance his social standing respectively (Venkatesh & Bala, 2008). The factors
for Systems characteristics are PEOU, Job relevance, output quality and result demonstrability which measure
the degree to which an individual perceives using IT will be free of effort, the system’s relevance for their job,
the system’s ability to carry out the job and that the results of using the system being tangible, respectively
(Venkatesh & Bala, 2008).
Furthermore, PEOU is concerned with Individual differences, Facilitating conditions and System
characteristics. Individual differences measure Computer self-efficacy, Computer anxiety and Computer
playfulness which is the individual’s beliefs regarding their ability, individual‘s apprehension towards using
computers and the individual‘s intrinsic motivation, respectively (Venkatesh & Bala, 2008). Facilitating
conditions measure the individual‘s control belief regarding availability of organizational resources to support
use of the system. System characteristics measures perceived enjoyment from using system and objective
usability based on effort required for completing tasks across systems, respectively (Venkatesh & Bala, 2008).
Figure 4 presents a graphical representation of TAM showing the determinants and their influence.
Figure 4: TAM theoretical framework adapted from Venkatesh and Bala (2008)
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3.1.2 Where TAM has been used
TAM has been used extensively to understand various IT technology adoption initiatives in the following areas:
Mobile commerce (Chi, 2018); Cloud Computing adoption (Hemlata, Hema and Ramaswamy, 2015); e-Health
adoption (Rakibul, Yukun & Golam, 2017); Internet banking adoption (Riffai, Grant & Edgar, 2012; Bijith, Nilay
& Chandan, 2017); e-Learning (Amulla, 2021; Buchanan, Sainter & Saunderers, 2013; Mailizar, Damon & Suci,
2021); Retail technology adoption (Kaushik & Rahman, 2015); Driverless car technology adoption (Koul &
Eydgahi, 2018); Webcasts adoption (Lust et al., 2012) and Enterprise Relational Planning (ERP) systems
adoption (Nnzeru, 2021b).
TAM has also been used with other theories to explain adoption, for example TAM was combined with Task
Technology Fit to understand more about telematics (Chen, 2019); in Xie, Song, Peng and Shabbir (2017) TAM
was combined with TPB to understand e-Government; in Chatterjee, Rana, Dwivedi and Baabdullah (2021)
TAM was integrated with TOE to study AI adoption; in Ming-Chi (2009) TAM was combined with TPB to study
internet banking and in Hossein (2015) TAM was combined with the IS success model to study e-Learning.
3.1.3 Reasons for not selecting TAM
While TAM is a powerful framework that can explain IT adoption, the framework does not provide
interventions for management to influence PU and PEOU as these determinants are incomplete predictors on
their own due to lack of actionable guidance (Chen, 2019; Venkatesh & Bala, 2008). Furthermore, as this
research aims to understand and explain successful implementation of DT at an organization level, TAM is not
a suitable theory as its primary objective is to predict individual adoption and use of new IT (Venkatesh & Bala,
2008).
3.2 Institutional Theory (INT)
Institutional theory was identified as a possible theory given its strength in understanding internal and external
influences for organizations undergoing large change initiatives (Trope, 2014), for which the successful
implementation of DT can be classified. According to Oliveira and Martins (2011), the environment an
organization operates in will shape its structure, actions and its decisions. Oliveira and Martins (2011) add that
decisions of an organization are not driven only by efficiency objectives but also by social and cultural
influences, as well as their desire for legitimacy. Organizations cannot exist separately from the social
environment where they operate and their behaviour and degree of innovation can be understood in their
social context (Dos Santos, Borini, Pereira & Raziq, 2020). According to Lin, Luo and Luo (2020), firms confront
degrees of uncertainty by imitating other successful firms in the pursuit of professional, social and economic
acceptance. INT offers important theoretical lens for understanding the impact that external forces have on
decisions of organizations, it has wide application and provides sound conceptual basis for explaining
organizational transformation change (Lin et al., 2020). According to Oliveira and Martins (2011), INT adds to
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the environment context of the Technology, Organization and Environment Framework, enhancing its
explanatory power (Oliviera et al., 2019).
3.2.1 Overview of INT
According to Oliveira and Martins (2011) and Dos Santos et al. (2020), organizations become similar as a result
of isomorphic pressures and pressures for legitimacy. Dos Santos et al. (2020) contend that organizations not
only seek but are influenced by effects of legitimacy.
The isomorphic pressures in the institutionalized environment are mimetic, coercive and normative
institutional pressures and are likely to play a role in organizations’ predisposition of an IT based inter-
organizational system (Oliveira & Martins, 2011). Mimetic isomorphic pressures exist when organizations
imitate their competition (Dos Santos et al., 2020; Oliveira & Martins, 2011) which creates high degrees of
uncertainty (Dos Santos et al., 2020). Coercive isomorphic pressures exist when pressure is exerted by other
organizations (Dos Santos et al., 2020) and these can be formal or informal forces upon which organization
depend (Oliveira & Martins, 2011). Normative isomorphic pressures exist when organizations share
information through a form of a network which creates consensus (Oliveira & Martins, 2011), this can be
professional bodies and formalization (Dos Santos et al., 2020) which create channels of relating within a
network (Oliveira & Martins, 2011). According to Dos Santos et al. (2020), research has shown the key role
legitimacy plays in diffusion of organizational innovation.
3.2.2 Where INT has been used
A number of studies have employed the INT (Lin et al., 2020) to explain acceptance and diffusion of innovation,
these are: Electronic Data Interchange (Teo et al., 2003); ERP (Ugrin, 2009); green IS adoption (Butler, 2012);
Cloud service transformation (Yu et al., 2018) and ERP assimilation (Liang et al., 2007).
3.2.3 Reasons for not selecting INT
Firstly, while INT shows empirical evidence, is powerful in explaining diffusion of innovations in organizations
(Lin et al., 2020; Trope, 2014), however, INT is deemed not appropriate for this research due to its limited focus
on environment or external pressures only. Secondly, not all isomorphic pressures play a role in diffusion of
innovation (Lin et al., 2020). Lastly, the role of external pressures on organizations can yield both positive and
negative impressions on innovations and this can negatively affect decisions on innovations (Lin et al., 2020).
3.3 Technology, Organization and Environment Framework (TOE)
According to Oliveira and Martins (2011), the Technology, Organization and Environment (TOE) Framework
has been used extensively with the Diffusion of Innovation (DOI) theory to understand e-Commerce
innovations, as these models provide solid theoretical foundations and consistent empirical support. In
addition, TOE enables researchers to group factors in the research setting while taking into account the broader
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context in which they occur (Uwamariya & Loebbecke, 2020). Furthermore, the TOE framework is not only
comprehensive but also can be extended with additional factors, as there are no universal TOE factors
applicable across contexts (Uwamariya & Loebbecke, 2020). According to AlHinai (2020), the TOE framework
is one of the most recognized and established theory for organizational technology innovation. Chatterjee et al.
(2021) claim that the adoption of any technology can be interpreted with ease using the TOE Framework, as it
enables researchers to explain factors impacting adoption using technological, organizational and
environmental dimensions for any modern technology innovation.
3.3.1 Overview of TOE Framework
According to Tornatzky and Fleischer (1990), the TOE framework describes three contexts which influence an
organization’s decision to adopt and implement technology innovations. The contexts are: Technology context;
Organization context and Environment context (Oliveira & Martins, 2011; AlHinai, 2020; Aboelmaged, 2014).
AlHinai (202