Metaverse business transformation: four companies’ virtual experiences

Purpose: The huge curiosity and the imitation effect that the metaverse generates among companies lead towards the first experiments touching all the main processes of the organization in search of new sources of value or for improving the existing value sources. However, little is known about how to drive the business transformation brought by the metaverse consciously, and this may thus hinder the adoption of this technology. This paper aims to sustain the formulation and implementation of the metaverse business transformation by illustrating a theoretical matrix and four practical approaches. Specifically, first, the matrix allows for a better understanding of the metaverse phenomenon by discussing the two main directions (the “what” as the goal of the transformation and the “why” as the focus of the transformation) that must be considered when formulating a metaverse business transformation. Second, the four actionable approaches (the “how”) illustrate different pathways for implementing the metaverse business transformation. Design/methodology/approach: The study adopts an inductive research approach, leveraging a multiple case study design to address the scarcity of empirical data on metaverse business transformation. The conceptual matrix guided the selection of four European companies. In this way, each company was placed in each matrix quadrant and represented a specific approach to metaverse business transformation. Data collection included secondary sources for initial case placement within the matrix, unstructured interviews to capture nuanced insights into the approaches to metaverse business transformation and case observation and interviews with experts. Findings: The study reveals four distinct approaches to drive metaverse-driven business transformation (the “how”): the absorptive innovation approach, the desorptive transition approach, the absorptive engagement approach and the desorptive branding approach. Practical implications: The paper provides actionable guidelines for companies leveraging immersive technologies and managing organizational change to incorporate the metaverse into their operations. In particular, the study highlights the need for core business units, rather than IT departments, to lead metaverse adoption. Social implications: The paper suggests policymakers support the metaverse business transformation through incentives, research hubs and collaboration ecosystems while stressing that cultural transformation is crucial for fully realizing the metaverse’s long-term potential. Originality/value: The study examines the emerging context of the metaverse by investigating how organizations can effectively approach metaverse-driven business transformation. It adapts and extends a matrix initially designed for business transformation, incorporating empirical insights from case studies of companies undertaking metaverse initiatives. In this way, the paper offers four distinct approaches for navigating business transformation in the metaverse.