Human Execution Gap as a Socio-Technical Mechanism of Operational Failure in the Digital Transformation of Service-Manufacturing Firms

Research Aims: This study aims to explain why investment in digital technology at a technically mature level does not proportionally improve operational performance and to explore how human–technology misalignment emerges during operational execution. Design/Methodology/Approach: This research employs a Single Site Instrumental Explanatory Case Study at B21 Digital Printing, a service-manufacturing company. Data were collected through in-depth interviews with five key informants, participatory observation, and analysis of operational transaction data covering August–November 2025 (658 transactions). Data were analyzed using an integrated coding process consisting of open, axial, and selective coding. Research Findings: The findings reveal the Human Execution Gap as a structural socio-technical mechanism that constrains the effectiveness of digital transformation. This mechanism develops through three interconnected pathways: (1) cognitive-behavioral shortfalls in technology utilization, (2) the emergence of informal workarounds, and (3) the normalization of operational deviations. The results indicate that digital transformation failure is driven primarily by an imbalance between the rapid development of technical systems and the slower adaptive capacity of the organization's social system, rather than by technological limitations. Theoretical Contribution/Originality: This study introduces the Human Execution Gap as an organization-level emergent mechanism that extends socio-technical systems theory by explaining how execution-level misalignment mediates the relationship between digital technology investment and operational performance. It also identifies three distinct forms of socio-technical friction in service-manufacturing digitalization, providing a systemic perspective for understanding and managing digital transformation beyond technology adoption alone. Keywords: Digital transformation; human execution gap; operational performance; socio-technical systems; strategy execution