Influence of External Pressures on the Digital Transformation of Institutions

Abstract: More and more institutions have begun to implement digital transformation. Identifying the reasons behind institutions’ digital transformation can help them make the right strategies. This thesis focuses on the digital transformation taking place in the financial industry and uses organizational institutionalism theory to analyze the influence of external pressures, and what responsible strategies institutions may adopt. We use qualitative methods to conduct the research. We interview eight employees from different institutions in the financial industry in China. Our findings show how coercive, mimetic, and normative pressures affect these financial institutions differently, and in responding to these pressures, these financial institutions develop office management systems and new digital products and services. The study evaluates to which extent the new digital reality fits the theory of the influence of external pressures on institutions. For managerial practice, the findings provide guidance in describing and diagnosing external pressures that drive digital transformation, and in coping with these pressures appropriately to formulate effective digital transformation strategies.