Conceptualizing and Identifying Key Dimensions of Digital Innovation in Industrial Organizations: A Grounded Theory Approach

The emergence of a wide range of digital technologies has fundamentally changed the nature, process and outcomes of innovation. Researchers emphasize the distinction between digital innovation and traditional innovation and consider it necessary to theorize in this field due to the novelty of the concept of digital innovation. In this research, in an inductive way with the aim of conceptualizing and identifying the main dimensions of digital innovation in industrial organizations, first, using the systematic literature review approach, related articles were examined in the period from 2014 to 2022, and 48 articles were selected for analysis. Then, using the grounded theory approach, open, axial, and selective coding procedures were performed. According to this, the main dimensions of digital innovation were categorized in the form of a paradigm model include causal factors (13 categories under the 4 main dimensions of digital industrial platform and technology management, digital innovation ecosystem management, intelligent processes, digital structure and organization), contextual factors, intervening factors, strategies, and consequences. Also, by reviewing the definitions and identified dimensions, a novel definition for digital innovation in industrial organizations was presented. The resulting theoretical framework, in addition helping further conceptualization of this phenomenon, can be used in the design of organizations' digital innovation maturity models.