Unpacking the Digital Transformation in an Incumbent Context: The Role of Digital Skills

Digital technologies entail novel opportunities for incumbent organizations. However, the possibilities offered by digital technologies need to come together with skilled employees and executives to reveal the transformational implications of digital technologies for incumbent organizations. Despite the contemporary significance, extant literature lacks guidance for digital skills enhancement in incumbents, i.e., assess and develop digital skills in incumbents. Moreover, existing literature on digital skills focuses mainly on the educational context while leaving less explored the incumbent context. Thus, this study explores how incumbents assess and develop digital skills within their organizations through an in-depth case study of a utility company. Specifically, we shed lights on organizational mechanisms (i.e. top management support; company population engagement and human resources function intervention) that can facilitate the development and integration of digital skills in incumbent organizations. We also document organizational characteristics (i.e. time availability and recognition) and individual characteristics (i.e. individual digital skills and willingness) that can enable a group of individuals to facilitate digital transformation and initiate corporate entrepreneurship initiatives in the digital age in incumbent organizations. This study therefore contributes to digital skills, digital transformation, and corporate entrepreneurship literatures and offers practical implications for incumbents.