Incumbent firms face significant challenges due to rapid technological advancements, notably through generative artificial intelligence (GAI). By interviewing experienced digital leaders in a multiple-case study involving five organisations, this study elucidates eleven microfoundations, also referred to as low-level dynamic capabilities (DC). The specific focus centres on sensing, seizing, and transforming within the context of digital transformation (DT) efforts, offering insights into how organisations can navigate and leverage GAI to enhance their DT strategies. The identified microfoundations encompass 1) empowerment and knowledge utilisation, 2) innovation ecosystem engagement, 3) organisational learning and openness, 4) interdisciplinary collaboration, 5) learning-driven innovation network, 6) organisational agility, 7) strategic leadership, 8) alignment and governance enhancement, 9) adaptive and informed culture, 10) organisational resilience, and 11) synergy creation. These foundations collectively provide a framework for leveraging GAI effectively from an organizational perspective.

While companies in the IT industry—particularly the big tech companies—have profited from digital platform strategies, whether companies across industries also benefit from such strategies remains contested. Focusing on the S&P1500 companies, we show that digital platform strategies positively affect a company’s profitability, albeit after a lag of several years. To further explore the relationship between digital platform strategies and profitability, we considered the impact of the type of digital platform strategy and the presence of a chief digital officer (CDO). First, the positive effect of a digital platform strategy is stronger for companies that implement the digital platform organically ("build strategy") rather than for companies that acquire a platform ("buy strategy"). Second, the presence of a CDO positively moderates the effect of digital platform strategy in the long but not in the short run. Overall, implementing digital plat- forms is not a quick-win strategy for companies, but it requires careful consideration.