Leadership and the integration challenge: A grounded theory study of digital transformation in AECO

Abstract

This study examines how leaders in a large and complex public organization within the Architecture, Engineering, Construction and Operations (AECO) sector perceive the conditions for digitally oriented leadership. Using a grounded theory approach, twenty in-depth interviews with managers and project managers were analyzed through open and focused coding. The analysis identified Lack of integration of digital work systems as the core category summarizing the main barriers to digital transformation. Four interrelated categories - Lack of vision and purpose, Limited usability, Silo organization, and Organizational inertia -were found to constrain leaders’ ability to adopt digitally oriented leadership practices. The study contributes a grounded theoretical explanation showing how barriers operating at different leadership levels collectively reinforce the lack of integration of digital work systems, thereby constraining digitally oriented leadership and digital transformation. The study indicates that digital transformation cannot be achieved through technology alone but requires organizational and leadership integration supported by clear strategies, cross-functional collaboration, and adequate digital competence. These findings advance understanding of leadership conditions in digital transformation and offer practical implications for enhancing leadership capacity in AECO organizations.