Punctuated Multi-Layered Liminality in Digital Transformation: The Case of an Automotive Platform

Digital transformation is often characterized as a liminal process as organizations move from established practices to new ways of organizing afforded by digital technology. Two contrasting views exist, however, on the liminality of digital transformation. One view sees liminality as a discrete transient process, while the other sees it as an on-going continuous transition. Building on a case study around a digital innovation initiative of an incumbent automotive car manufacturer, we offer a third view. We find that digital innovation triggers a phase of punctuated, multi-layered liminality that has a material, structural and temporal layer. We explain how material, temporal and structural tensions unfold at the level of practice, triggering new forms of liminal practices. We further develop three mechanisms (boundary testing, temporal bridging, and structural recoupling) that underpin punctuated multi-layered liminality. We contribute by unpacking the relationship between digital innovation and digital transformation.