Abstract for: How to Overcome the Chasm and Promote Digital Transformation Using Goal-setting Theory

This study questions the assertion of previous studies that promoting DX requires small organizations to operate autonomously and with high agility. If the chasm theory is applied to DX, only innovators and early adopters are willing to utilize technology in a positive manner. The majority of organizations are technology backward-looking. Therefore, even if it is AI, small, autonomous organizations cannot freely utilize technology. By linking the Bass diffusion model and the adaptive expectations model, this study models how the early and late majorities, influenced by innovators and early adopters, learn about technology and convert to DX proponents. In particular, the study will focus on how the two groups, pioneers and conservatives, behave in pursuit of the common goal of DX. This study shows that even if the agility of the majority of the organization is low, appropriate goal setting can increase the overall agility of the organization by increasing the word-of-mouth effect from innovators and early adopters. It also shows that excessively high levels of goal setting can also reduce organizational agility. First, goal-setting theory in SD has so far been based on one group setting one goal. This study extends the model to one goal by two different groups. Second, the utilization of the diffusion model so far, the intrinsic goal is outside the system. Therefore, this study incorporates the goal explicitly. Furthermore, based on the findings obtained, an example of the use of image AI in Japan will be discussed.