Managing Competing Concerns in Digital Innovation: A Case Study of an Incumbent Maritime Company

Abstract

The need for new digitally enhanced solutions has led companies in traditionally non-digital industries to explore the potential of digital innovation. Various process frameworks claim their ability to support this endeavor by facilitating the digital innovation process. However, such frame-works alone may not be sufficient because digital innovation in established firms tends to involve numerous actors with competing interests. This introduces the need to manage the competing concerns in order to orchestrate the digital innovation process. Knowledge about how the organizational actors negotiate, agree, and collectively drive the innovation process forward thus becomes crucial. This interpretive case study describes how participants of a digital innovation program in an established maritime company manage their competing concerns through four negotiation episodes: Mobilizing of internal stakeholders, Developing capacity for faster decision-making, Pricing new digital services, and Establishing a connection between business and development. The results indicate that negotiating competing concerns is necessary for the incumbents to move forward with their digital innovation and that communities of practice can facilitate such negotiations. We conclude that recombination of the established processes as an outcome of such negotiations is necessary to succeed with digital innovation in incumbent firms.