Strategizing beyond the boardroom: how middle managers shape digital strategy

Digital strategies vary in scope, ranging from localized process improvements to large- scale business model transformation. While prior research has portrayed middle managers as implementers of digital strategy, emerging work suggests that they also shape strategic outcomes. Yet we know little about how middle managers influence digital strategy trajectories under different strategic conditions. Drawing on a multi-case study of 63 interviews, we show that middle managers shape digital strategy trajectories by responding to misaligned perceptions of organizational digital capabilities between top and middle managers. We identify three pathways through which middle managers influence digital strategy: broadening, scaling, and narrowing digital initiatives. These pathways emerge when middle managers perceive that top managers underestimate or overestimate the firm's digital capabilities. In response, they engage in divergent strategizing behaviors that adjust the scope of digital initiatives. We further show that these behaviors depend on the strategizing approach adopted by top managers. Under centralized strategizing, middle managers pursue adjustments through covert “shadow” strategizing. In a more open, decentralized strategy, they engage in overt discussions with top managers. By explaining how cross-level capability perceptions shape digital strategy trajectories, this study advances research on digital strategizing and clarifies the strategic role of middle managers in digital transformation.