Organizational readiness for digital innovation: Development and empirical calibration of a construct

Abstract

The advent and proliferation of digital technologies purport to increase the innovation potential of most organizations. However, approximately 90% of new ideas never convert to new product or service deliveries because of the lack of organizational readiness. This paper conceptualizes a formative multidimensional construct to gauge organizational readiness for digital innovations. Such a construct would facilitate cumulative research on the role of digital innovation, while benchmarking to track organizational readiness. The proposed construct includes 21 measures, categorized under seven subconstructs: resource readiness, IT readiness, cognitive readiness, partnership readiness, innovation valance, cultural readiness, and strategic readiness.