Abstract
<jats:p>Digital transformation (DT) is increasingly recognized as organization-wide renewal that reshapes value creation, governance, and accountability regimes. Yet DT also constitutes a transformation of meaning: as digital initiatives redefine what is measured, rewarded, and justified, organizations must renegotiate “who we are” for both members and stakeholders. This chapter develops a conceptual account of the DT–organizational identity (OI) interplay by treating identity as simultaneously (1) an interpretive filter and legitimacy constraint that conditions transformation scope and acceptance, and (2) an object of revision as technologies, operating models, and stakeholder scrutiny reconfigure organizational self-definitions. We propose a reciprocal and recursive framework in which DT and OI co-shape each other through identifiable mechanisms and persistent tension fields. Identity strain becomes especially salient when DT redirects value propositions toward servitization and ecosystems, redistributes authority through new operating models, and embeds datafied and algorithmic evaluation that heightens concerns about transparency, accountability ownership, and fairness. The chapter links these tensions to organizational and managerial responses, arguing that effective transformation governance must include meaning governance. We discuss narrative and integrative governance, leadership practices, employee participation as identity work infrastructure, and algorithmic governance safeguards (e.g., auditability, calibrated explanations, contestability) that protect legitimacy while enabling adaptive identity revision. We conclude by outlining implications for research on digital organizational identity and algorithmic decision-making, and for practice in governing identity during ongoing digital change.</jats:p>