Journal of Strategic Management Studies

Journal of Strategic Management Studies

Identifying and analyzing challenges and barriers to digital culture development in large telecom companies

Document Type : Research

Authors
1 Associate Professor, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran
2 Professor, Faculty of Management, University of Tehran, Tehran, Iran
10.22034/smsj.2026.544201.2190
Abstract
Introduction
Digital transformation has emerged as one of the most critical imperatives for contemporary organizations seeking to remain competitive in rapidly evolving markets. For large-scale telecommunication firms, the significance of this transformation is even greater due to the sector’s unique characteristics, including extensive infrastructure, high capital intensity, widespread customer bases, and rapidly shifting technological standards. In such contexts, the ability of firms to modernize their processes, reconfigure their business models, and realign their strategic orientations becomes indispensable. However, successful digital transformation extends beyond the mere adoption of new technologies; it fundamentally depends on the development of a strong and adaptive digital culture. Organizational digital culture reflects the shared values, beliefs, and practices that enable employees and leaders to embrace change, experiment with innovative approaches, and integrate digital thinking into everyday decision-making. Without such a cultural foundation, even the most ambitious digital initiatives are likely to face resistance and underperformance. Despite its critical role, cultivating a digital culture within large telecommunication enterprises is often a highly challenging endeavor. Prior studies suggest that cultural barriers, such as employee reluctance, managerial inertia, or conflicting priorities, may pose greater obstacles to transformation than technological limitations. Yet, the precise nature of these barriers, as well as the causal relationships among them, remain insufficiently understood, particularly in the telecommunications industry. This study, therefore, seeks to fill this gap by systematically identifying, categorizing, and prioritizing the barriers that hinder the development of a digital culture in large telecommunication firms.
Methodology
To accomplish this research objective, a meticulously structured three-stage methodological strategy was systematically implemented. In the initial stage, a meta-synthesis methodology was rigorously applied to consolidate and synthesize key insights derived from an extensive corpus of preexisting scholarly investigations concerning digital transformation and its interplay with organizational culture. This analytical process facilitated the construction of a robust and comprehensive conceptual framework, which effectively amalgamated antecedent theoretical propositions while delineating prominent recurrent patterns inherent in the identified challenges. Subsequently, in the second stage, a series of semi-structured interviews was meticulously conducted with a purposively selected panel of 28 domain experts operating within the telecommunications sector. This cohort encompassed senior executives, digital strategy managers, and specialized consultants who possessed direct, hands-on involvement in spearheading digital transformation initiatives. These in-depth interviews yielded nuanced, sector-specific empirical perspectives that profoundly enriched the aforementioned conceptual framework by incorporating contextual subtleties and real-world evidentiary substantiation. Finally, in the culminating third stage, the Decision Making Trial and Evaluation Laboratory (DEMATEL) technique was judiciously employed to rigorously dissect and model the causal interrelationships prevailing among the delineated barriers. Through the deployment of this advanced analytical instrument, the investigation transcended mere descriptive cataloging of challenges, advancing instead to a sophisticated prioritization schema predicated on the relative magnitude of each barrier’s influence and its intricate interdependencies with others.
Results and Discussion
The qualitative phase of this study, grounded in meta-synthesis and expert interviews, identified twenty distinct barriers impeding digital culture development. These barriers were further analyzed using the Decision Making Trial and Evaluation Laboratory (DEMATEL) method to determine their causal interrelationships and prioritize managerial interventions. The findings reveal that the most critical challenges are not technological, but managerial and strategic. The causal analysis classifies the barriers into cause and effect groups, highlighting insufficient leadership support as the most significant root cause. This lack of top-level commitment directly precipitates other foundational causal barriers, including weakness in defining and promoting a digital vision, lack of clear goals and metrics, inappropriate change management, and insufficient communication and training. Consequently, without addressing these leadership-driven obstacles, efforts to resolve downstream issues are likely to fail. Further contributing to the causal side of the spectrum are an excessive focus on technology over human factors, issues with legacy systems, a lack of attention to diversity and inclusion, and a lack of trust in cybersecurity. These root causes manifest in a series of symptomatic “effect” barriers. The analysis identifies resistance to change and neglect of employee experience as the most prominent barriers, indicating they are the most tangible outcomes of the underlying strategic failures. Other significant effects include insufficient employee participation, a negative attitude toward digital transformation generally, and the slow implementation of changes. The systemic failure to lead and communicate vision further results in cultural inertia, a lack of innovation culture, a negative attitude toward technology, and weakness in data and information management. Finally, dependent factors such as the digital skills gap and talent shortage and a lack of continuous learning and adaptability emerge as downstream consequences, suggesting that skill deficits are often byproducts of an environment that fails to prioritize learning. The causal diagram analysis suggests a four-quadrant roadmap for intervention. The “Critical Factors” quadrant comprising leadership support, vision, clear goals, and change management—demands immediate resource allocation. In contrast, “Effect Factors” like employee resistance and low engagement should be viewed as diagnostic indicators rather than primary targets; they are expected to subside once the root causes are mitigated. “Independent Factors” such as legacy systems and excessive technology focus require separate, targeted improvement projects, while “Dependent Factors” like skill gaps will likely resolve as the organizational culture shifts toward continuous learning. Ultimately, the study confirms that digital culture is not merely a byproduct of technological adoption but requires a deliberate, top-down strategy to overcome entrenched organizational inertia.
Conclusion
The findings of the study highlight that foundational barriers, such as insufficient leadership commitment, lack of a clearly articulated digital vision, and misalignment between strategic objectives and digital initiatives, exert the most significant causal impact. These barriers generate secondary challenges, including widespread resistance to change among employees, lack of trust in digital systems, and disregard for employee experience in the design of transformation programs. The analysis reveals that unless leadership-driven obstacles are adequately addressed, other remedial measures are unlikely to produce sustainable results. Furthermore, the findings emphasize that digital culture is not merely a by-product of technological change but a precondition for its success. From a managerial perspective, these results provide a roadmap for leaders in telecommunication enterprises to design targeted interventions that foster digital culture. For instance, cultivating visible and consistent leadership support, establishing a shared and inspiring digital vision, and involving employees in the co-creation of transformation initiatives are shown to be effective strategies. From an academic standpoint, the study contributes to the literature by integrating conceptual synthesis with empirical insights and methodological rigor, thereby offering a replicable framework for analyzing cultural barriers in other industries as well. In conclusion, the study demonstrates that the success of digital transformation within large telecommunication organizations hinges not solely on technology, but more profoundly on people, culture, and leadership. By identifying and prioritizing the barriers to digital culture development, this research provides both scholars and practitioners with actionable insights that can facilitate smoother transitions toward digitally enabled organizations. The findings ultimately underline the importance of culture as the backbone of digital transformation, without which technological investments and strategic reforms risk falling short of their intended impact.
Keywords
Subjects

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Volume 17, Issue 66
Summer 2026
Pages 39-72

  • Receive Date 30 August 2025
  • Revise Date 26 October 2025
  • Accept Date 03 March 2026