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While every firm is striving to embrace digital transformation (DT) to form new differentiating business capabilities, there are dark sides to such initiatives, and it is essential to acknowledge, identify and address them. The purpose of this paper is to identify and emperically demonstrate the impact of such darksides of DT. While a firm's DT effort may have many dark sides, the authors identify data breaches as the most critical one and focus on proving their impact since it can inflict significant damage to the firm.

Through the lens of paradox theory, the authors argue that the DT efforts of a firm will lead to increased risk and severity of data breaches. The authors developed a one-of-a-kind longitudinal data set by combining data from multiple sources, including 3604 brands over a 10-year period, and employed a DT performance scorecard to evaluate a firm's DT effort across four key digital selling touchpoints: site, mobile, digital marketing and social media.

The findings of this study show that a firm's DT efforts pertaining to its mobile and digital marketing platforms significantly increase the likelihood and severity of a data breach event indicating that these two channels are most vulnerable and need heightened attention from firms. Furthermore, the findings suggest that the negative repercussions of some DT initiatives may be minimized as the firm becomes more innovative. The findings can help firms re-strategize their DT efforts by promoting security and also encouraging a balanced communication strategy.

This research is one of the first to identify, recognize and empirically illustrate the downsides of a DT effort that is otherwise thought to provide only benefits.

The study explores the alignment of Swiss small and medium-sized enterprise (SME) managers' understanding of digital transformation, with evidence of digital tool adoption in managerial and operative work. This reveals opportunities for more fully realizing the potential of digital transformation for SMEs.

This multiple-case study, with four theoretically sampled cases, analyzes data from the qualitative answers of 1,593 respondents to a survey of Swiss SMEs about digital transformation. The study draws on a convenience sample of Swiss SME managers.

The analysis shows little understanding of digital transformation as related to managerial work. However, there are two clear digital tool adoption patterns for managerial work: (1) workflow and workforce management and (2) work-flow and team management. Understandings of digital transformation and operative work focus on the (1) organization of operational work or (2) a combination of organization and changing the way people work. The digital tool adoption in operational work additionally focuses on the digital skills of operational employees.

The study is only able to identify patters of understanding of digital transformation and digital tool adoption in managerial and operative work. More research is needed to understand why these patterns are observed.

SME managers need to think far more carefully about aligning their vision for digital transformation and the digital tools they adopt in both managerial and operational work, but especially in managerial work.

This is the first empirical study of the digital transformation of Swiss SMEs and their digital tool adoption. Significant potential for alignment is revealed, suggesting potential performance gains are possible.