Balancing strategic renewal, cost and efficiency: a case study in digital transformation

Purpose Recent studies have indicated that digital transformation can benefit an organization’s strategic renewal. However, there is little knowledge on how business executives engage in digital transformation for this purpose, especially in the service sectors of emerging markets. Therefore, this study aims to examine how business managers accomplish strategic renewal through digital transformation in emerging markets. Design/methodology/approach The authors conducted a longitudinal single case study of a leading business firm in China’s real estate industry, China Overseas Land & Investment Ltd. (COLI). Results of the analysis of semistructured interviews and rich secondary data allowed us to better understand how business managers react to changing customer demands by building and implementing divergent digital tools to fulfill strategic renewal. Findings The results showed that business executives of COLI developed the Whole Life Cycle Management System, to achieve strategic renewal. The system benefits resource allocation and potential adjustments to strategic goals. This study also helps update the organizational structure of the marketing and consumer services departments, helping better satisfy consumers’ demands and waste fewer resources. Thus, COLI accomplished structural, contextual and leadership-based ambidexterity. Originality/value This study provides a fresh understanding of the link between digitalization and strategic renewal by providing a fine-grained analysis of leading service providers in emerging markets. To the best of the authors’ knowledge, this study is among the first to investigate the role of digital transformation in strategic renewal from an ambidexterity perspective.