Employee Participation in Digital Transformation: A Knowledge Integration Perspective

Abstract

In recent years, the phenomenon of digital transformation (DT) has gained significant attention in both research and practice. Organizations embark on DT journeys to achieve strategic and business benefits, yet the outcomes of these projects often present numerous challenges. Scholars contend that many of these challenges are people-related, emphasizing the importance of employee participation and involvement for the success of DT initiatives. Despite this, the existing DT literature predominantly focuses on strategic and managerial aspects, offering limited guidance on the functioning of employee participation in DT projects. Based on this foundation, this thesis and its associated publications investigate how the employee participation should be practiced in digital transformation projects. The thesis highlights the complex knowledge demands of DT projects and conceptualizes employee participation in digital transformation as a knowledge integration process. Using Carlile’s farmwork for knowledge integration, the thesis sheds light on how employees integrate their knowledge as well as the challenges they face during this process. The empirical investigation in thesis is based on a single case study of a major digital transformation project in Norwegian healthcare sector. Employee participation was an area of key importance in the case, with approximately 400 employees serving as Subject Matter Experts (SMEs). Data collection methods included interviews, project documents, and observations. The case study is further complemented by a systematic literature review on the conditions necessary for effective employee participation in DT projects. The results of this thesis show that the complex demands of digital transformation—such as the need for innovation, unlocking the potential of digital technologies, and fostering future-thinking and multi-disciplinarity—make the participation process highly challenging. Participating employees must integrate their knowledge to address these demands effectively. The thesis introduces the concept of “transformative participation,” which takes into account these challenges and needs of digital transformation. However, the findings also highlight a contradiction between the trajectories of knowledge integration and employee participation, which must be resolved to prevent undesirable outcomes. In addition to contributing to digital transformation and knowledge integration literature, the thesis also provides a much-needed update to Information Systems (IS) participation theory in the context of digital transformation.