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Organizational readiness for digital innovation: Development and empirical calibration of a construct
Authors:Sachithra Lokuge  Darshana Sedera  Varun Grover
Affiliation:1. Monash University, Melbourne, Australia;2. University of Arkansas, Fayetteville, USA;3. UQ Business School, University of Queensland, Brisbane, Australia
Abstract:The advent and proliferation of digital technologies purport to increase the innovation potential of most organizations. However, approximately 90% of new ideas never convert to new product or service deliveries because of the lack of organizational readiness. This paper conceptualizes a formative multidimensional construct to gauge organizational readiness for digital innovations. Such a construct would facilitate cumulative research on the role of digital innovation, while benchmarking to track organizational readiness. The proposed construct includes 21 measures, categorized under seven subconstructs: resource readiness, IT readiness, cognitive readiness, partnership readiness, innovation valance, cultural readiness, and strategic readiness.
Keywords:IT portfolio management  Digital innovation  Readiness  Formative Index  Case Study  Survey  CIO
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