Preparation for Digital Transformation: A Case and Empirical Findings of South Korean Multinational Corporations

Abstract

Purpose – Digital transformation is the key to success for recent multinational corporates. Ample studies have paid attention to the effectiveness of digital transformation and usage of advanced technology, but there is a lack of research related to how to prepare for digital transformation. The main purpose of this study is to organize specific case of preparation for digital transformation from a management perspective. In addition, the empirical results are presented to examine the impact of the preparation of the digital transformation. Design/Methodology/Approach – The study first reviews previous literature about digital transformation to organize antecedents, theory, contingency, and outcomes. Second, based on the resource-based view, a case is explained the company’s context, processes, and methodology. Lastly, empirical analysis is conducted to investigate how effective the digital transformation is prepared, and results are presented with data from 50 affiliations and 1,059 employees. Findings – This study finds the key to successful digital transformation is well-prepared talent, and suggests how multinational corporates can be ready for talent selection and development. Furthermore, readiness in digital transformation in talent varies by industry, company, and employee characteristics. Then, the study implies successful digital transformation should consider a contingency. Research Implications – The current study expands the knowledge on digital transformation by suggesting an actual case of South Korean multinational corporations, which allows researchers and practitioners to understand the process and methodology. Second, this research extended the discussion of digital transformation to talent selection preparation since previous literature has focused only on recent technology. Lastly, the st udy int roduces the empirical results of preparation for digital t ransfor mation and helps practitioners initiate digital transformation in their organizations. © 2023 International Academy of Global Business and Trade.