Innovation in established industries undergoing digital transformation: the role of collective identity and public values

Abstract

This paper discusses how established industries adapt to digital transformation. While digitalisation is perceived as an impetus for change, either due to the opportunities or threats it brings about, not all industries are able to change unlimitedly. We seek to understand digital transformation concerning products and services perceived to have a wider public value. Our empirical case is the newspaper industry in Norway, which has a strong collective identity tied to the societal function of independent journalism. We find that an industry with a resilient identity leaning towards preservation can learn how to use the digital space to adapt and innovate effectively. The adaptation and innovation processes are shaped by the interplay between the collective identity and the nature of digital work and innovation. The outcome is a continued emphasis on retaining the core mission but with an increasingly pragmatic approach to how and in what form it is safeguarded. Continuous collaborative experimentation and deliberation on the fit between innovations and the collective identity is a key change mechanism. Our study contributes to a better understanding of collective identities and their interplay with innovation.