How to be Organizational Agile under Digital Disruptions : Exploring the perspective of Subsidiary Management in an IT Multinational Enterprise

Abstract: Background: From digitalization acceleration, digital disruptions such as edge-cutting technologies, have caused challenges and changes to business’ natures in terms of value, structures, and strategies. No industry nor organization is immune to these impacts, especially multinational enterprises in the information technology industry, whereas these businesses have started to overlook and disregard traditional ways of working to enhance these impacts. Agility has become a new vital dynamic capability in today’s environment, whereas organizational agility is argued to support businesses to cope with this turbulent era of increased competition, globalization, and digitalization. Although, to enhance this, traditional business processes and operations must be rethought and extended to a digital context.  Purpose: As digital disruptions have become a threat to businesses' values and operations, it has gained increased attention in both practice and research. Organizational agility is raised as a tool and response to cope with these new digital threats and changes to fundamental business values, however, this has also increased pressure on managers to create and maintain cohesion and motivation when change is imposed. Nonetheless, how this is managed and experienced within local subsidiaries of multinational enterprises lacks both exploration and understanding, and thus, suggesting that there is much left to uncover. This, especially on how to maintain local responsiveness while enhancing global fundamental values when introducing organization agility to cope with changes and digital disruptions.   Method: With a relativism ontology, interpretivism epistemology, and inductive research approach, this research studied how to be organizationally agile under digital disruptions, from a subsidiary perspective in an IT multinational enterprise. Through a qualitative explorative research and multiple-case study design, the empirical data was gathered from 12 semi-structured in-depth interviewees and observations, where the employee perspective set the foundation of how organizational agility and digital disruptions are managed and experienced within their local subsidiaries. The data were analyzed through a thematic analysis, including separate within-case analyzes, a cross-case analysis, and lastly, a comparison with existing literature.  Conclusion: The findings show how multinational enterprises in the information technology industry could manage organizational agility when digital disruptions occur and how this is experienced amongst employees. Subsidiary Management is vital for coping with digital disruptions whereas Strategic Decision-Making for responding to the same, fundamentally relying on the Organizational Culture with the six key factors of Ownership, Learning, Diversity, Inclusion, Trust, and Mindset. Moreover, organizational agility could cause a negative tradeoff of work-life balance and a negative tradeoff between increased workload and individual growth, whereas increased autonomy creates a tradeoff between local independence and global cohesiveness. This, however, was experienced as both positive and negative. Being organizationally agile is vital on both global and local levels to utilize efficiency, flexibility, and be locally responsive to regional market demands where the attention must be given to people rather than structures to be agile and digitally responsive.