Resistance to digital transformation and the destruction of social capital

Abstract

When a Russian transportation company decided to convert into a platform business to increase its efficiency and to win back market share, it was confronted with high levels of middle management resistance. This paper studies the reasons for this resistance and how the company succeeded in overcoming it by using the work of the French sociologist Bourdieu. Based on interviews and the study of internal documents, this paper presents eight cases of middle management resistance and draws conclusions on what other organizations can do to alleviate similar situations. Social capital was originally built through strong ties in intra-group cohesion. The new platform business though required weak ties throughout the firm became of interest. The paper shows that most resistance is attributable to an immediate loss in social capital that the company failed to rebuild. Still, the decisions taken by the change management team or their decision to accommodate resistance behaviour rather than confront it, led to the creation of a new form of social or cultural capital.