Turning Pressure into Power: The Configuration Effect of Antecedents on the Digital Transformation of Engineering Enterprises

Abstract

Institutional environment shapes the success of enterprise digital transformation, but its impact pathways, to our best knowledge, have received relatively little investigation, particularly in the fields of architecture, engineering, and construction (AEC). Grounded in neoinstitutional theory, this study conducted a fuzzy set qualitative comparative analysis of the effects of institutional pressure on digital transformation. The study yielded three results. First, the interaction of coercive, normative, and mimetic pressures can drive the digital transformation of AEC enterprises. For example, facing the digital delivery requirements of stakeholders and the pressure of digital collaboration in the supply chain, digital leaders in an enterprise will quickly apply internal pressure to raise the digitalization level. Also, in a highly competitive industry environment, the pressure to imitate the excellent digital transformation strategies of other enterprises comes with it. In a less competitive environment, however, digital leaders are the main pressure source to promote the digital transformation of enterprises. Second, we find that stakeholder vision, supply chain collaboration needs, and digital leaders are the key sources of digital transformation pressure. Third, high or low digitization levels cannot simply be explained by the opposite cause. Offering a new understanding of coercive, mimetic, and normative pressures on the complex digital transformation pathways of AEC enterprises, this study has implications for enterprises formulating digital transformation strategies. The findings point to the importance of corporate strategic change in the current digital environment, identify the institutional factors driving digital transformation, and will help AEC industry enterprises with different main businesses to respond to institutional pressures and improve the effectiveness of digital transformation through more targeted measures. This study can assist engineering enterprises around the world to develop digital transformation strategies. By exploring the complex causal relationships between the institutional environment and the digital transformation of engineering enterprises, this study provides a strong empirical foundation for new initiatives and policies to achieve high digitalization levels.