Digital transformation is often studied as an organizational-level phenomenon, focusing on how organizations adapt their strategies, structures, processes, and capabilities in response to digital technologies. However, organizational transformation is ultimately enacted by individuals: managers, employees, experts, and other actors who interpret digital technologies, develop new skills, make decisions, change routines, and contribute to capability building. This individual-level perspective is commonly discussed under the concept of microfoundations.

While research on dynamic capabilities and digital transformation has grown substantially, the literature on their microfoundations remains fragmented. Existing studies are scattered across Information Systems, management, organization studies, and related fields. As a result, it remains unclear how the individual-level mechanisms underlying digital transformation and dynamic capabilities are currently conceptualized, which themes dominate the literature, and where important research gaps remain.

This bachelor’s thesis therefore aims to review and synthesize the current state of academic literature on the microfoundations of digital transformation and dynamic capabilities. The thesis will contribute to an ongoing research project by identifying relevant concepts, theoretical perspectives, and individual-level mechanisms discussed in the literature.

Methodologically, the thesis will conduct a structured literature review, drawing on established guidelines by Webster and Watson (2002) as well as vom Brocke et al. (2009, 2015). The expected outcome is a systematic overview of the current state of research, including key themes, conceptual relationships, and potential avenues for future research.