Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies

Abstract

Abstract The digital transformation of firms is a pervasive trend within the digital-based economy. Despite its inevitability, there is a continuing debate regarding the most effective methods for implementing such transformations. This study delineates four digital technology strategies—searching, enhancing, grafting, and integrating—within the theoretical framework that digital technology can strengthen an enterprise’s existing legacy technology. Using fuzzy qualitative comparative analysis, this study examines 76 Chinese high-tech manufacturing companies to uncover the configuration effects of technology distance, the type of technical search, and leadership perceptions on the adoption of these strategies. The empirical results reveal that the searching strategy is commonly employed in scenarios involving general technology, search breadth, and the perceived usefulness of the technology. The enhancing strategy is typically adopted when companies engage in extensive searches and perceive digital technology as easy to use. Moreover, the grafting strategy has emerged as the natural choice when there is a deep search for specific technologies coupled with a recognition of their usefulness. The integrating strategy becomes prominent when a company identifies a specific technology through both search breadth and search depth, acknowledging its usefulness and ease of use simultaneously. These findings offer valuable insights for managers aiming to select an effective digital technology strategy to facilitate successful transformation.