Managing Generational Tensions Toward Digital Transformation: A Microfoundational Perspective

The rise of digital technologies poses new organizational challenges, redesigning organizational structures, paving the way for new opportunities. Despite the growing body of research on digital transformation, there has been relatively little research on the microfoundational mechanisms that contribute to the successful digital transformation of workplaces. Drawing from the microfoundational perspective, this study examines managers’ cognition regarding the digital transformation of the workplace, with a particular focus on how generational differences among managers influence such cognitions. To explore this topic, a case study was conducted using 25 semi structured interviews and field observations at a Dutch multinational enterprise. The findings identify key mechanisms related to digital transformation processes, highlighting how generational differences between managers belonging to Generation X and Generation Y necessitate efficient coordination to cope with organizational tensions and successfully pursue the digital transformation of workplaces. This coordination can be supported by orchestrating managers, a shared vision, and the development of a flexible paradigm. The study concludes with a discussion of the implications, limitations, and avenues for future research.