Digital differentiation, software product lines, and the challenge of isomorphism in innovation: A case study

This paper examines the adoption of software product line engineering to implement digital differentiation of physical products. The introduction of such software-based variety can typically be challenging for firms innovating within the realm of a manufacturing paradigm. In particular, the mutual dependency between the organization design and product design of new product developing firms may counteract attempts to induce change through software product line engineering. On the basis of innovation theory and the notion of isomorphism, the paper presents a case study of digital differentiation at one of the world’s largest automakers, GlobalCarCorp. Relating to the literatures of software product lines and product families, the contribution of the paper is a lens through which to understand the role of isomorphism in implementing digital differentiation in new product development. In addition, practical implications are derived from this in-depth study.