Resolving Manufacturing's Digital Transformation Paradox via Configurational Legitimacy-Dependencies Alignment

Abstract

This study addresses the digital transformation paradox by examining how configurations of institutional pressures and resource dependencies determine the performance of different digital transformation models. Integrating institutional theory and resource dependence theory within a configurational framework, the authors employ a hybrid fsQCA-NCA analysis of large listed manufacturing firms. Results reveal multiple equifinal paths to high performance, demonstrating substitutive and compensatory relationships between external legitimacy and internal capabilities. The primary contribution is a theoretically grounded “Legitimacy-Dependency Alignment Matrix” that offers managers a diagnostic tool for strategic decision-making. They advance beyond linear explanations by showing that strategic alignment—not isolated factors—explains digital transformation outcomes.