Between institutional scaling and artistic probing: how traditional performing arts organizations navigate digital transformation

This study aims to examine how traditional performing arts organizations (PAOs) interpret and respond to digital transformation in a context of long-standing traditions and ambiguous demands. It explores how and why digital strategies diverge under similar institutional contexts. Based on 25 expert interviews with digital professionals in PAOs, the study applies sensemaking theory and the Gioia methodology to reconstruct how organizations assign meaning to digital initiatives and shape distinct strategies. We identify two ideal-typical strategic orientations: scaling and potentialization. Scaling focuses on expanding access and preserving continuity by digitally reproducing existing formats. In contrast, potentialization embraces digitality as a space for creative exploration and reimagining of artistic expression. These orientations are shaped by different sensemaking modes and unfold across four aggregate dimensions: initiating conditions, resource allocation, interaction culture and dissemination logic. The study contributes to the body of research in organizational change management by (1) offering a framework of complementary strategic orientations rooted in different sensemaking modes, (2) demonstrating how sensemaking drives strategic divergence in highly institutionalized settings and (3) providing a concept of potentialization as a culturally grounded logic of digital innovation in the arts.