Institutional Constraints In Digital Transformation Project Delivery: A Cross-Sector Qualitative Study In Indonesia
Published 2026-07-16
Keywords
- digital transformation,
- institutional constraints,
- project delivery,
- agile governance,
- institutional rhythm
How to Cite
Abstract
Purpose: This study examines how institutional constraints shape digital transformation project delivery across private-sector, state-owned enterprise (SOE), and government contexts in Indonesia, with particular attention to how institutional governance structures influence project delivery rhythms across different organizational settings.
Design/methodology/approach: The study uses a qualitative multiple-case design based on seven Indonesian digital transformation consulting projects. The analysis draws on 487 coded interview segments, 82 coding nodes, and 69 themes. Cross-case comparison was used to identify how delivery constraints vary across project phases and institutional settings. The findings are intended to provide an analytical rather than statistical generalization of institutional patterns in digital transformation delivery.
Findings: Three sectoral patterns are identified. SOE projects were dominated by upstream planning-contract constraints, including contractual ambiguity, scope vagueness, and difficulty translating strategic transformation intent into project terms. Government projects were dominated by downstream UAT and deployment constraints, where procedural validation and acceptance routines shaped project closure. Private-sector projects showed dual pressure between delivery speed and scope clarity. Across sectors, agile delivery was often constrained by institutional approval rhythms, creating a mismatch between adaptive project execution and organizational governance requirements.
Originality/value: The study reframes digital transformation project delivery as an institutional problem rather than only a technical or managerial problem. It introduces the concept of delivery rhythm–institutional rhythm alignment as a mechanism for understanding how governance structures shape project execution across sectors. The study contributes cross-sector qualitative evidence from Indonesia and shows why IT consultants need sector-sensitive delivery governance rather than one-size-fits-all project controls.
References
- Bode, M., Daneva, M. and van Sinderen, M.J. (2022), “Characterising the digital transformation of IT consulting services: results from a systematic mapping study”, IET Software, Vol. 16 No. 5, pp. 455-477. https://doi.org/10.1049/sfw2.12068
- Conforto, E.C., Amaral, D.C., da Silva, S.L., Di Felippo, A. and Kamikawachi, D.S.L. (2016), “The agility construct on project management theory”, International Journal of Project Management, Vol. 34 No. 4, pp. 660-674. https://doi.org/10.1016/j.ijproman.2016.01.007
- DiMaggio, P.J. and Powell, W.W. (1983), “The iron cage revisited: institutional isomorphism and collective rationality in organizational fields”, American Sociological Review, Vol. 48 No. 2, pp. 147-160. https://doi.org/10.2307/2095101
- Kane, G.C., Phillips, A.N., Copulsky, J.R. and Andrus, G.R. (2019), The Technology Fallacy: How People Are the Real Key to Digital Transformation, MIT Press, Cambridge, MA.
- Lyytinen, K. and Newman, M. (2008), “Explaining information systems change: a punctuated socio-technical change model”, European Journal of Information Systems, Vol. 17 No. 6, pp. 589-613. https://doi.org/10.1057/ejis.2008.50
- Markus, M.L. and Benjamin, R.I. (1997), “The magic bullet theory in IT-enabled transformation”, Sloan Management Review, Vol. 38 No. 2, pp. 55-68.
- Mergel, I., Edelmann, N. and Haug, N. (2019), “Defining digital transformation: results from expert interviews”, Government Information Quarterly, Vol. 36 No. 4, Article 101385. https://doi.org/10.1016/j.giq.2019.06.002
- Miles, M.B., Huberman, A.M. and Saldaña, J. (2014), Qualitative Data Analysis: A Methods Sourcebook, 3rd ed., SAGE Publications, Thousand Oaks, CA.
- O’Reilly, C.A. and Tushman, M.L. (2013), “Organizational ambidexterity: past, present, and future”, Academy of Management Perspectives, Vol. 27 No. 4, pp. 324-338. https://doi.org/10.5465/amp.2013.0025
- Orlikowski, W.J. (1992), “The duality of technology: rethinking the concept of technology in organizations”, Organization Science, Vol. 3 No. 3, pp. 398-427. https://doi.org/10.1287/orsc.3.3.398
- Rachinger, M., Rauter, R., Müller, C., Vorraber, W. and Schirgi, E. (2019), “Digitalization and its influence on business model innovation”, Journal of Manufacturing Technology Management, Vol. 30 No. 8, pp. 1143-1160. https://doi.org/10.1108/JMTM-01-2018-0020
- Ramdani, B., Binsaif, A. and Boukrami, E. (2019), “Business model innovation: a review and research agenda”, New England Journal of Entrepreneurship, Vol. 22 No. 2, pp. 89-108. https://doi.org/10.1108/NEJE-06-2019-0030
- Scott, W.R. (2014), Institutions and Organizations: Ideas, Interests, and Identities, 4th ed., SAGE Publications, Thousand Oaks, CA.
- Serrador, P. and Pinto, J.K. (2015), “Does Agile work? A quantitative analysis of agile project success”, International Journal of Project Management, Vol. 33 No. 5, pp. 1040-1051. https://doi.org/10.1016/j.ijproman.2015.01.006
- Tavoletti, E., Kazemargi, N., Cerruti, C., Grieco, C. and Appolloni, A. (2022), “Business model innovation and digital transformation in global management consulting firms”, European Journal of Innovation Management, Vol. 25 No. 6, pp. 612-636. https://doi.org/10.1108/EJIM-11-2020-0443
- Teece, D.J. (2018), “Business models and dynamic capabilities”, Long Range Planning, Vol. 51 No. 1, pp. 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
- Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J.Q., Fabian, N., and Haenlein, M. (2021), “Digital transformation: a multidisciplinary reflection and research agenda”, Journal of Business Research, Vol. 122, pp. 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
- Westerman, G., Bonnet, D. and McAfee, A. (2014), Leading Digital: Turning Technology into Business Transformation, Harvard Business Review Press, Boston, MA.
- Yin, R.K. (2018), Case Study Research and Applications: Design and Methods, 6th ed., SAGE Publications, Thousand Oaks, CA.