Digital transformation of organization using AI-CRM: From microfoundational perspective with leadership support

Abstract

Business firms are increasingly innovating their traditional business model to a technology-enabled digitalized model for their sustainability in the competitive market. Firms have already felt the necessity to embark on a digital transformation journey to sustain themselves. However, specific capabilities at the microfoundation level are needed for successfully exploiting this paradigm shift towards digital transformation. In the digital transformation journey, specific digital skills and capabilities at the microfoundational level are essential to achieve success. The psychological foundations of the employees should be aligned in favor of digitalization to successfully gain competitive advantage. Not many studies are available to understand individual capabilities and skills at the microfoundational level. In this background, the aim of this study is to investigate the role of individual capability at the microfoundational level, including the leadership role along with technology capability like an AI-enabled CRM system, towards digitalization. With the help of RBV theory and status quo bias theory, a theoretical model has been developed which was later validated using SEM technique with data of 341 respondents from different industries. The study finds that there is a significant influence of individuals’ skills and capabilities to embrace the digital transformation journey.

Keywords: Digital transformation, AI-CRM, Microfoundation, Leadership support, Resistance to change, Perceived risk