Digital Innovation in Luxury Heritage Firms

This paper explores the implementation of digital innovation strategy by luxury heritage firms through the analysis of dynamic capabilities and organisational ambidexterity. It specifically demonstrates how Swiss luxury heritage watch maker Jaeger-LeCoultre (JLC) has been successful in gradually transforming its traditional business model by successfully implementing a digital innovation strategy based on mass customization. The findings show that ambidexterity is crucial for luxury heritage firms to exploit their distinctive competence base – their unique capabilities, their unique skills, their know-how that allow them to produce authentic products – and to explore innovative digital strategies in order to take advantage of new opportunities.