Abstract

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

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