Paper Number
ICIS2025-1577
Paper Type
Complete
Abstract
Digital innovation has become a strategic imperative for incumbents seeking to sustain long-term competitiveness. While the IT function is increasingly recognized as critical enabler of such innovation, its transition from a support-oriented unit to a strategic partner remains unclear. Drawing on a longitudinal multiple case study of four incumbents, we investigate mechanisms that enable this transition in the context of digital innovation projects. We identify structural ambidexterity, building and cultivating digital capabilities, and IT function legitimacy as mechanisms that enable the IT function to reposition itself. We contribute by elucidating how digital innovation projects serve as catalyst for organizational reconfiguration, prompting shifts in organizational logics. Specifically, we introduce IT function legitimacy as a critical yet unexplored element of IT governance, highlighting how digital innovation reshapes governance towards a more relational and legitimacy-driven dynamic beyond structural and procedural changes. Finally, we offer practical insights for repositioning the IT function as strategic partner.
Recommended Citation
Bienfuss, Isabel; Kranz, Johann; and Hanelt, André, "IT’s Transition from Service Provider to Strategic Partner in Incumbent Firms: A Longitudinal Analysis" (2025). ICIS 2025 Proceedings. 6.
https://aisel.aisnet.org/icis2025/diginnoventren/diginnoventren/6
IT’s Transition from Service Provider to Strategic Partner in Incumbent Firms: A Longitudinal Analysis
Digital innovation has become a strategic imperative for incumbents seeking to sustain long-term competitiveness. While the IT function is increasingly recognized as critical enabler of such innovation, its transition from a support-oriented unit to a strategic partner remains unclear. Drawing on a longitudinal multiple case study of four incumbents, we investigate mechanisms that enable this transition in the context of digital innovation projects. We identify structural ambidexterity, building and cultivating digital capabilities, and IT function legitimacy as mechanisms that enable the IT function to reposition itself. We contribute by elucidating how digital innovation projects serve as catalyst for organizational reconfiguration, prompting shifts in organizational logics. Specifically, we introduce IT function legitimacy as a critical yet unexplored element of IT governance, highlighting how digital innovation reshapes governance towards a more relational and legitimacy-driven dynamic beyond structural and procedural changes. Finally, we offer practical insights for repositioning the IT function as strategic partner.
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17-Innovation