Modernization and enterprise performance: a study on the challenges faced by Brazilian firms in their digital transformation

Abstract

Digital transformation has been widely studied, particularly in companies based in developed countries such as the United States. However, there is comparatively less research on the specific challenges faced by businesses in Latin America, especially in Brazil, one of the region’s largest and most dynamic economies, which has experienced a rapid wave of digital adoption. This exploratory thesis aims to contribute to the understanding of digital transformation journeys in Brazilian organizations. It begins with a literature review that compiles key academic perspectives on the importance of digital transformation, various approaches to assessing digital maturity, and the common challenges organizations face in their digitalization efforts. Building on this foundation, the study applies the Gioia Methodology—a widely used approach in Innovation and Entrepreneurship research—to analyze semi-structured interviews with experienced digital transformation professionals in Brazil. The goal is to uncover both common patterns and unique aspects of digital transformation journeys in Brazilian organizations. The semi-structured interviews reveal that many of the challenges encountered by Brazilian organizations during their digital transformation efforts align with those identified in the literature review. Common obstacles include cultural and workplace adaptation, difficulties in collaboration and integration, and strategic & leadership misalignment. However, certain factors related to industry and regulatory trends, organizational structures, legacy technology and outdated digital infrastructures, appear to have distinct Brazilian characteristics. While this research does not introduce a new theoretical framework, it seeks to contribute to the literature on digital transformation in Latin America by examining real-world experiences and perspectives from experienced Brazilian professionals. Through this analysis, the study aims to deepen the understanding of how digital transformation unfolds in a developing economy with unique regulatory, organizational, and technological contexts. Additionally, it offers practical knowledge for professionals leading these initiatives, helping them navigate the specific challenges within the Brazilian market