Skip to main content
Top

2022 | OriginalPaper | Chapter

Managing Technological Obsolescence in a Digitally Transformed SME

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

We seek to enrich the literature by investigating the digitalization journey of a high-tech, manufacturing small and medium-sized enterprise (SME) to shed light on the topic. We undertook an interpretive longitudinal study between 2009 and 2020, capturing the transformation journey of an award-winning high-tech SME that is designing and manufacturing high-end home entertainment systems including digital streaming products, music players, and speakers. This study offers important contributions to theory and practice. We conceptualize and define the link between technological obsolescence and the digital transformation process. We offer a conceptual framework to explain the interplay of the adaptive capabilities namely empirical sensitivities and habitus in the context of digital transformation in SMEs. In addition, our study has important implications for practice. SME managers should pay attention to developing non-cognitive dynamic capabilities to effectively respond to digitalization trends by orienting their employees toward careful management of technology obsolescence in a manner unique to the firm’s history and experiences.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
1.
go back to reference Adetunji, O., Bischoff, J., Willy, C.J.: Managing system obsolescence via multicriteria decision making. Syst. Eng. 21(4), 307–321 (2018)CrossRef Adetunji, O., Bischoff, J., Willy, C.J.: Managing system obsolescence via multicriteria decision making. Syst. Eng. 21(4), 307–321 (2018)CrossRef
2.
go back to reference Agarwal, R., Helfat, C.E.: Strategic renewal of organizations. Organ. Sci. 20(2), 281–293 (2009)CrossRef Agarwal, R., Helfat, C.E.: Strategic renewal of organizations. Organ. Sci. 20(2), 281–293 (2009)CrossRef
3.
go back to reference Amankwah-Amoah, J.: Integrated vs. add-on: a multidimensional conceptualisation of technology obsolescence. Technol. Forecast. Soc. Chang. 116, 299–307 (2017)CrossRef Amankwah-Amoah, J.: Integrated vs. add-on: a multidimensional conceptualisation of technology obsolescence. Technol. Forecast. Soc. Chang. 116, 299–307 (2017)CrossRef
4.
go back to reference Ates, A., Acur, N.: Making obsolescence obsolete: Execution of digital transformation in a high-tech manufacturing SME. J. Bus. Res. 152, 336–348 (2022) Ates, A., Acur, N.: Making obsolescence obsolete: Execution of digital transformation in a high-tech manufacturing SME. J. Bus. Res. 152, 336–348 (2022)
5.
go back to reference Bartels, B., Ermel, U., Sandborn, P., Pecht, M.G.: Strategies to the Prediction, Mitigation, and Management of Product Obsolescence, vol. 87. John Wiley & Sons, Hoboken (2012)CrossRef Bartels, B., Ermel, U., Sandborn, P., Pecht, M.G.: Strategies to the Prediction, Mitigation, and Management of Product Obsolescence, vol. 87. John Wiley & Sons, Hoboken (2012)CrossRef
6.
go back to reference Bradley, J.R., Guerrero, H.H.: Lifetime buy decisions with multiple obsolete parts. Prod. Oper. Manag. 18(1), 114–126 (2009) Bradley, J.R., Guerrero, H.H.: Lifetime buy decisions with multiple obsolete parts. Prod. Oper. Manag. 18(1), 114–126 (2009)
7.
go back to reference Bruineberg, J., Rietveld, E.: Self-organization, free energy minimization, and optimal grip on a field of affordances. Front. Hum. Neurosci. 8(599), 1–14 (2014) Bruineberg, J., Rietveld, E.: Self-organization, free energy minimization, and optimal grip on a field of affordances. Front. Hum. Neurosci. 8(599), 1–14 (2014)
9.
go back to reference Chia, R., Holt, R.: Strategy as practical coping: a heideggerian perspective. Organ. Stud. 27, 635–655 (2006)CrossRef Chia, R., Holt, R.: Strategy as practical coping: a heideggerian perspective. Organ. Stud. 27, 635–655 (2006)CrossRef
10.
go back to reference Chung, S.W., Han, J.K., Sohn, Y.S.: Technological expectation and consumer preferences for product form. J. Bus. Res. 65(9), 1290–1294 (2012)CrossRef Chung, S.W., Han, J.K., Sohn, Y.S.: Technological expectation and consumer preferences for product form. J. Bus. Res. 65(9), 1290–1294 (2012)CrossRef
11.
go back to reference Del Giudice, M., Scuotto, V., Papa, A., Tarba, S.Y., Bresciani, S., Warkentin, M.: A self-tuning model for smart manufacturing SMEs: effects on digital innovation. J. Prod. Innov. Manag. 38(1), 68–89 (2021)CrossRef Del Giudice, M., Scuotto, V., Papa, A., Tarba, S.Y., Bresciani, S., Warkentin, M.: A self-tuning model for smart manufacturing SMEs: effects on digital innovation. J. Prod. Innov. Manag. 38(1), 68–89 (2021)CrossRef
12.
go back to reference Eisenhardt, K.M., Martin, J.A.: Dynamic capabilities: what are they? Strateg. Manag. J. 21(10–11), 1105–1121 (2000)CrossRef Eisenhardt, K.M., Martin, J.A.: Dynamic capabilities: what are they? Strateg. Manag. J. 21(10–11), 1105–1121 (2000)CrossRef
13.
go back to reference Hurst, D.K.: Crisis & Renewal: Meeting the Challenge of Organizational Change, pp. 120–123. Harvard Business School Press, Boston (1995) Hurst, D.K.: Crisis & Renewal: Meeting the Challenge of Organizational Change, pp. 120–123. Harvard Business School Press, Boston (1995)
14.
go back to reference Jain, A.: Learning by hiring and change to organizational knowledge: countering obsolescence as organizations age. Strateg. Manag. J. 37(8), 1667–1687 (2016)CrossRef Jain, A.: Learning by hiring and change to organizational knowledge: countering obsolescence as organizations age. Strateg. Manag. J. 37(8), 1667–1687 (2016)CrossRef
15.
go back to reference Le Mens, G., Hannan, M., Polos, L.: Organizational obsolescence, drifting tastes and age dependence in organizational life chances. Organ. Sci. 26(2), 550–570 (2015)CrossRef Le Mens, G., Hannan, M., Polos, L.: Organizational obsolescence, drifting tastes and age dependence in organizational life chances. Organ. Sci. 26(2), 550–570 (2015)CrossRef
16.
go back to reference Li, D.Y., Liu, J.: Dynamic capabilities, environmental dynamism, and competitive advantage: evidence from China. J. Bus. Res. 67(1), 2793–2799 (2014)MathSciNetCrossRef Li, D.Y., Liu, J.: Dynamic capabilities, environmental dynamism, and competitive advantage: evidence from China. J. Bus. Res. 67(1), 2793–2799 (2014)MathSciNetCrossRef
17.
go back to reference Müller, J.M., Buliga, O., Voigt, K.-I.: Fortune favors the prepared: how SMEs approach business model innovations in Industry 4.0. Technol. Forecast. Soc. Chang. 132, 2–17 (2018)CrossRef Müller, J.M., Buliga, O., Voigt, K.-I.: Fortune favors the prepared: how SMEs approach business model innovations in Industry 4.0. Technol. Forecast. Soc. Chang. 132, 2–17 (2018)CrossRef
18.
go back to reference Nayak, A., Chia, R., Canales, J.I.: Noncognitive microfoundations: understanding dynamic capabilities as idiosyncractically refined sensitivities and predispositions. Acad. Manag. Rev. 45(2), 280–303 (2020)CrossRef Nayak, A., Chia, R., Canales, J.I.: Noncognitive microfoundations: understanding dynamic capabilities as idiosyncractically refined sensitivities and predispositions. Acad. Manag. Rev. 45(2), 280–303 (2020)CrossRef
19.
go back to reference Pobiak, T.G., Mazzuchi, T.A., Sarkani, S.: Creating a proactive obsolescence management system framework through the systems engineering continuum. Syst. Eng. 17(2), 125–139 (2014)CrossRef Pobiak, T.G., Mazzuchi, T.A., Sarkani, S.: Creating a proactive obsolescence management system framework through the systems engineering continuum. Syst. Eng. 17(2), 125–139 (2014)CrossRef
20.
go back to reference Rai, R., Terpenny, J.: Principles for managing technological product obsolescence. IEEE Trans. Compon. Pack. Technol. 31(4), 880–889 (2008)CrossRef Rai, R., Terpenny, J.: Principles for managing technological product obsolescence. IEEE Trans. Compon. Pack. Technol. 31(4), 880–889 (2008)CrossRef
21.
go back to reference Rojo, F.J.R., Roy, R., Shehab, E., Wardle, P.J.: Obsolescence challenges for Product-service systems in aerospace and defense industry. In: The 1st CIRP Industrial Product-Service Systems (IPS2) Conference, Cranfield University, p. 255 (2009) Rojo, F.J.R., Roy, R., Shehab, E., Wardle, P.J.: Obsolescence challenges for Product-service systems in aerospace and defense industry. In: The 1st CIRP Industrial Product-Service Systems (IPS2) Conference, Cranfield University, p. 255 (2009)
22.
go back to reference Shen, X., Williams, R., Zheng, S., Liu, Y., Li, Y., Gerst, M.: Digital online music in China – a “laboratory” for business experiment. Technol. Forecast. Soc. Chang. 139, 235–249 (2019)CrossRef Shen, X., Williams, R., Zheng, S., Liu, Y., Li, Y., Gerst, M.: Digital online music in China – a “laboratory” for business experiment. Technol. Forecast. Soc. Chang. 139, 235–249 (2019)CrossRef
23.
go back to reference Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18(7), 509–533 (1997)CrossRef Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18(7), 509–533 (1997)CrossRef
24.
go back to reference Vial, G.: Understanding digital transformation: a review and a research agenda. J. Strateg. Inf. Syst. 28(2), 118–144 (2019)CrossRef Vial, G.: Understanding digital transformation: a review and a research agenda. J. Strateg. Inf. Syst. 28(2), 118–144 (2019)CrossRef
25.
go back to reference Warner, K.S., Wäger, M.: Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal. Long Range Plan. 52(3), 326–349 (2019)CrossRef Warner, K.S., Wäger, M.: Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal. Long Range Plan. 52(3), 326–349 (2019)CrossRef
26.
go back to reference Westerman, G., Bonnet, D.: Revamping your business through digital transformation. MIT Sloan Manag. Rev. 56(3), 10 (2015) Westerman, G., Bonnet, D.: Revamping your business through digital transformation. MIT Sloan Manag. Rev. 56(3), 10 (2015)
Metadata
Title
Managing Technological Obsolescence in a Digitally Transformed SME
Authors
Aylin Ates
Nuran Acur
Copyright Year
2022
DOI
https://doi.org/10.1007/978-3-031-16411-8_17

Premium Partner