Governance structures for long-term digital transformation: an agent-based simulation approach

• Hrishikesh Desai ^[1]
  1. [1] Arkansas State University

     Arkansas State University

     Township of Jonesboro, Estados Unidos

     
• Localización: Strategy, people, and technology: challenges and opportunities in the future of business / coord. por Margarita Núñez Canal, María de las Mercedes de Obesso Arias, 2025, ISBN 978-84-1085-482-6, págs. 35-58
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • As organizations undergo long-term digital transformation, the role of governance structures in shaping performance, capability evolution, and workforce adaptation becomes increasingly relevant. This study develops an agent-based analytical model to investigate how hierarchical, decentralized, and hybrid governance structures influence digital transformation outcomes over time. The model captures key organizational dynamics, including resource allocation efficiency, capability development, employee effort adaptation, and governance-induced inefficiencies, and is validated through a numerical experiment.

    The results reveal that decentralized governance promotes the highest long-term transformation success, as it maximizes capability growth, sustains high employee effort, and ensures efficient resource utilization. In contrast, hierarchical governance limits digital adaptability, imposing rigid structures that slow workforce responsiveness and reduce performance.

    Hybrid governance strikes a balance by combining structured oversight with flexibility and enabling moderate but stable transformation success.

    The study further highlights the importance of dynamic governance mechanisms, where organizations should adapt governance models over time to align with evolving technological and market conditions.

    The findings provide practical guidance for organizations, policymakers, and business leaders in designing governance structures that optimize digital transformation