To the top: the impact of digital transformation on the market value of Magazine Luiza

Guilherme Batistella Castellar, Mateus Ferreira Rumbelsperger Querido, Fernando de Souza Meirelles


Objective of the study: This article aims to highlight the aspects that drove the implementation of digital transformation on Magazine Luiza and contribute to the development of the digital transformation theory.

Relevance/originality: Information technology (IT) offers opportunities for businesses to automatize operations and change business strategies (Henderson & Venkatraman, 1999), but it is still not clear for every business how to embrace technology (Drnevich & Croson, 2013).

Methodology/approach: Using a case study, we analyzed the main aspects of the digital transformation of the Brazilian retailer Luiza Magazine, which achieved a 43,000% increase in its share price between 2015 and 2020, mainly due to innovations enabled by IT.

Main results: We identify that some of the main aspects of the company's digital transformation have not been properly studied in the literature, such as the use of a bimodal IT structure and the use and interconnectivity between traditional and new technologies in innovative and even disruptive ways.

Theoretical/methodological contributions: This study contributes to the literature by analyzing empirical data on the pillars that support the implementation of digital transformation in an organization, which can be used as input to theory development on digital transformation.

Social/management contributions: The digital transformation of Magazine Luiza resulted in a large increase in the market value of the company. This, aligned with the company’s expansion and increasingly better results, suggests that technology has the potential to change the company’s strategy and lead to its success, corroborating Bharadwaj’s (2013) view.


Digital transformation; Digital business strategy; Bimodal IT; Innovation; Digitalization.

Full Text:



Adams, R., Bessant, J., & Phelps, R. (2006). Innovation management measurement: A review. International journal of management reviews, 8(1), 21-47.

ADVFN. (2020). Histórico MAGAZ LUIZA ON - MGLU3. Retrieved Jan 19, 2020, from

Agarwal, R., Gao, G., DesRoches, C., & Jha, A. K. (2010). Research commentary—The digital transformation of healthcare: Current status and the road ahead. Information Systems Research, 21(4), 796-809.

Albertin, A. L., & Albertin, R. M. d. M. (2012). Dimensões do uso de tecnologia da informação: um instrumento de diagnóstico e análise. Revista de Administração Pública, 46(1), 125-151.

Ayres, R. U., & Williams, E. (2004). The digital economy: Where do we stand? Technological Forecasting and Social Change, 71(4), 315-339.

Barbieri, C. (2014). Ele chegou lá “fazendo medo”, Época Negócios. Retrieved from

Bartis, E., & Mitev, N. (2008). A multiple narrative approach to information systems failure: a successful system that failed. European Journal of Information Systems, 17(2), 112-124.

Berghaus, S., & Back, A. (2016). Stages in Digital Business Transformation: Results of an Empirical Maturity Study. Paper presented at the MCIS.

Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: toward a next generation of insights. MIS quarterly, 471-482.

Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS quarterly, 169-196.

Burke, R. R. (1997). Do you see what I see? The future of virtual shopping. Journal of the Academy of Marketing Science, 25(4), 352-360.

Cain, M., & Waller, G. (2018). Closing the Digital Dexterity Gap in Digital Business Strategies. Retrieved Jan 26, 2020, from

Capucci, R., & Castro, L. (2017). Brasil vive a pior recessão da história, G1. Retrieved from

Castellar, G. B., & Querido, M. F. R. (2020). Rumo ao topo: O Impacto da Transformação Digital no Valor de Mercado do Magazine Luiza. International Symposium on Project Management, Innovation and Sustainability (SINGEP) Conference 2020, São Paulo, Brazil.

Cope, N. (1996). Retail in the digital age: Bowerdean.

Davenport, T. H., & Westerman, G. (2018). Why so many high-profile digital transformations fail. Harvard Business Review, 9, 15.

Demirkan, H., Spohrer, J. C., & Welser, J. J. (2016). Digital innovation and strategic Transformation. IT Professional, 18(6), 14-18.

dos Santos, A. L. (2016). Revolução digital em uma empresa de meio século. GV Executivo, 15.

Dos Santos, B. L., Peffers, K., & Mauer, D. C. (1993). The impact of information technology investment announcements on the market value of the firm. Information Systems Research, 4(1), 1-23.

Dreyfuss, C., & Toledo, B. (2019). 2019 CIO Agenda: A Brazil Perspective. Retrieved Jan 26, 2020, from

Drnevich, P. L., & Croson, D. C. (2013). Information technology and business-level strategy: toward an integrated theoretical perspective. MIS quarterly, 483-509.

Ebneyamini, S., & Sadeghi M. M. R. (2018). Toward Developing a Framework for Conducting Case Study Research. International Journal of Qualitative Methods, 17(1), 160940691881795. doi:

Eisenhardt, K. M. (1989), Building theories from case study research, Academy of Management Review, 1989, vol. 14. No. 4, 532-550.

Fichman, R. G., Dos Santos, B. L., & Zheng, Z. (2014). Digital innovation as a fundamental and powerful concept in the information systems curriculum. MIS quarterly, 38(2), 329-A315.

Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1.

Framingham, M. (2019). Businesses Will Spend Nearly $1.2 Trillion on Digital Transformation This Year as They Seek an Edge in the Digital Economy, According to a New IDC Spending Guide. Retrieved Jan 26, 2020, from

Gewald, H., Wang, X., Weeger, A., Raisinghani, M. S., Grant, G., Sanchez, O., & Pittayachawan, S. (2017). Millennials' attitudes toward IT consumerization in the workplace. Communications of the ACM, 60(10), 62-69.

Gu, W., & Surendra, G. (2004). The effect of organizational innovation and information technology on firm performance. Available at SSRN 1404689.

Haffke, I., Kalgovas, B., & Benlian, A. (2017). Options for Transforming the IT Function Using Bimodal IT. MIS Quarterly Executive, 16(2).

Hall, B. H. (1999). Innovation and market value.

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159-1197.

Henderson, J. C., & Venkatraman, H. (1999). Strategic alignment: Leveraging information technology for transforming organizations. IBM systems journal, 38(2.3), 472-484.

Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2).

Hidalgo, A., & Albors, J. (2008). Innovation management techniques and tools: a review from theory and practice. R&d Management, 38(2), 113-127.

Hill, N., & Govekar, M. (2019). Adopt I&O Key Performance Indicators to Deliver Digital Business Value. Retrieved Jan 26, 2020, from

Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52-61.

Horlach, B., Drews, P., & Schirmer, I. (2016). Bimodal IT: Business-IT alignment in the age of digital transformation. Multikonferenz Wirtschaftsinformatik (MKWI), 1417-1428.

Hox, J. J., & Boeije, H. R. (2005). Data collection, primary versus secondary.

Kahil, G. (2011). Ações da Magazine Luiza sobem em estreia na bolsa, Exame. Retrieved from

Karimi, J., & Walter, Z. (2015). The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. Journal of Management Information Systems, 32(1), 39-81.

Kojikovski, G. (2014). Empresas de e-commerce vão melhorar a entrega? Exame. Retrieved from

Kraus, S., Schiavone, F., Pluzhnikova, A., & Invernizzi, A. C. (2021). Digital transformation in healthcare: Analyzing the current state-of-research. Journal of Business Research, 123, 557–567.

LeHong, H., & Waller, G. (2018). Digital Business Ambition: Transform or Optimize? Retrieved Jan 26, 2020, from

Madureira, D. (2019). De corpo e alma: as lições de Marcelo Silva, o conselheiro que fez a ponte na gestão do Magazine Luiza, Seu Dinheiro. Retrieved from

Magazine Luiza. (2011). J.P. Morgan 5th Annual Brazil Check Up. Retrieved from

Magazine Luiza. (2012). 7ª Conferência Anual de CEO da América Latina. Retrieved from

Magazine Luiza. (2012). Internet Day – Magazine Luiza. Retrieved from

Magazine Luiza. (2012). Relatório Anual 2012. Retrieved from

Magazine Luiza. (2012). RELATÓRIO DA ADMINISTRAÇÃO 2012. Retrieved from

Magazine Luiza. (2013). Relatório Anual e de Sustentabilidade 2013. Retrieved from

Magazine Luiza. (2013). RELATÓRIO DA ADMINISTRAÇÃO 2013. Retrieved from

Magazine Luiza. (2014). ML Day - Frederico Trajano. Retrieved from

Magazine Luiza. (2014). RELATÓRIO DA ADMINISTRAÇÃO 2014. Retrieved from

Magazine Luiza. (2015). ML Day - Frederico Trajano. Retrieved from

Magazine Luiza. (2015). Movimento #abraceonovo. Retrieved from

Magazine Luiza. (2015). RELATÓRIO DA ADMINISTRAÇÃO 2015. Retrieved from

Magazine Luiza. (2015). Relatório Integrado 2015. Retrieved from

Magazine Luiza. (2016). ML Day. Retrieved from

Magazine Luiza. (2016). RELATÓRIO DA ADMINISTRAÇÃO 2016. Retrieved from

Magazine Luiza. (2016). Relatório Integrado 2016. Retrieved from

Magazine Luiza. (2017). ML Day 2017. Retrieved from

Magazine Luiza. (2017). RELATÓRIO DA ADMINISTRAÇÃO 2017. Retrieved from

Magazine Luiza. (2017). Relatório Integrado 2017. Retrieved from

Magazine Luiza. (2018). ML Day. Retrieved from

Magazine Luiza. (2018). RELATÓRIO DA ADMINISTRAÇÃO 2018. Retrieved from

Magazine Luiza. (2019). Magalu Day 2019. Retrieved from

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343.

Meirelles, F. S. (2021). Pesquisa Anual Uso de TI nas Empresas. FGVcia - Centro de Tecnologia de Informação Aplicada da FGV-EAESP, 32ª edição, 2021

Mello, B. (2011). Magazine Luiza cria venda direta pelas redes sociais, Exame. Retrieved from

Mithas, S., Tafti, A., & Mitchell, W. (2013). How a firm's competitive environment and digital strategic posture influence digital business strategy. MIS Quarterly, 511-536.

Nama. (2018). Lu, o chatbot da Magazine Luiza que é queridinho do público. Retrieved from

Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in a digital world. Mis Quarterly, 41(1).

Nwaiwu, F. (2018). Review and comparison of conceptual frameworks on digital business transformation. Journal of Competitiveness, 10(3), 86.

Nwankpa, J. K., & Roumani, Y. (2016). IT capability and digital transformation: a firm performance perspective. Paper presented at the International Conference on Information (ICIS).

Nylén, D., & Holmström, J. (2015). Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation. Business Horizons, 58(1), 57-67.

Olesen, K., & Myers, M. D. (1999). Trying to improve communication and collaboration with information technology. Information Technology & People.

Olivon, B. (2013). Ações do Magazine Luiza sobem após nova aquisição, Exame. Retrieved from

Pantano, E. (2014). Innovation drivers in retail industry. International Journal of Information Management, 34(3), 344-350.

Paulo, F. d. S. (2019). Magazine Luiza se valoriza mais de 1.000% desde abertura de capital, Folha de São Paulo. Retrieved from

Paulo, I. S. (2014). Preços ainda são problemas na megapromoção: segundo internautas, sites mentem sobre descontos, iG. Retrieved from

Piccinini, E., Gregory, R. W., & Kolbe, L. M. (2015). Changes in the producer-consumer relationship-towards digital transformation. Changes, 3(4), 1634-1648.

Proctor, P., Smith, M., Anderson, J., & Sampath, S. (2019). The Gartner Digital Business Value Model: A Framework for Measuring Business Performance. Retrieved Jan 26, 2020, from

Rai, A., & Tang, X. (2014). Research commentary—information technology-enabled business models: A conceptual framework and a coevolution perspective for future research. Information Systems Research, 25(1), 1-14.

Reuters. (2015). Magazine Luiza pode avaliar fechar capital, diz presidente do conselho, G1. Retrieved from

Ross, J. (2014). Designing your business for the digital economy. Retrieved Jan 26, 2020, from

Scardovi, C. (2017). Digital transformation in financial services (Vol. 236): Springer.

Schramm, W. (1971). Notes on Case Studies of Instructional Media Projects.

Schumpeter, J. A. (1934). The Theory of Economic Development. Cambridge, MA: Harvard University Press.

Scopus. (2020). Retrieved Jan 26, 2020, from

Setia, P., Setia, P., Venkatesh, V., & Joglekar, S. (2013). Leveraging digital technologies: How information quality leads to localized capabilities and customer service performance. MIS quarterly, 565-590.

Sia, S. K., Soh, C., & Weill, P. (2016). How DBS Bank Pursued a Digital Business Strategy. MIS Quarterly Executive, 15(2).

Soh, C., Yeow, A., Goh, Q., & Hansen, R. (2019). Digital Transformation: Of Paradoxical Tensions and Managerial Responses.

Tapscott, D. (1996). The digital economy: Promise and peril in the age of networked intelligence (Vol. 1): McGraw-Hill New York.

Tapscott, D. (2014). The Digital Economy: Rethinking Promise and Peril in the Age of Networked Intelligence (Vol. 2): McGraw-Hill New York.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901.

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems.

vom Brocke, J., Fay, M., Schmiedel, T., Petry, M., Krause, F., & Teinzer, T. (2017). A journey of digital innovation and transformation: The case of Hilti. In Shaping the Digital Enterprise (pp. 237-251). Springer, Cham.

Winkelhake, U., Winkelhake, & Schilgerius. (2018). Digital Transformation of the Automotive Industry: Springer.

Wißotzki, M., & Sandkuhl, K. (2017, November). The digital business architect–towards method support for digital innovation and transformation. In IFIP Working Conference on The Practice of Enterprise Modeling (pp. 352-362). Springer, Cham.

Yin, R. K. (2017). Case study research and Applications: Design and methods (applied social research methods): Sage publications Thousand Oaks, CA.

Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). Research commentary—the new organizing logic of digital innovation: an agenda for information systems research. Information Systems Research, 21(4), 724-735.



  • There are currently no refbacks.

Copyright (c) 2021 International Journal of Innovation

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

International Journal of Innovation

e-ISSN: 2318-9975

Int. J. Innov ©2022 – All rights reserved

Is this work licensed with a License
Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional