Organizational Metamorphosis: When Artificial Intelligence Transforms Companies into New Economic Life Forms

Author

Allan M. Glass, Clemson UniversityFollow

Date of Award

8-2025

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Management

Committee Chair/Advisor

Chad Navis

Committee Member

Amy Elizabeth Ingram

Committee Member

Marissa Shuffler Porter

Committee Member

Craig Wallace

Abstract

Traditional theories of organizational change fall short in explaining how artificial intelligence (AI) transforms organizations. This grounded theory study, based on interviews with 34 organizational leaders, identifies a novel phenomenon: organizational metamorphosis - the irreversible transformation of organizations into fundamentally new entities through deep integration with AI as a cognitive partner.

The metamorphosis process unfolds in three phases. Individual Awakening occurs when leaders experience powerful interactions with AI, prompting a rapid shift from skepticism to advocacy. Once a critical mass of leaders undergo this shift, it initiates Organizational Restructuring, characterized by reimagined work design, boundary dissolution, and altered temporal rhythms. These changes create the conditions for Emergent Evolution, in which organizations develop human-AI symbiosis and new capabilities that surpass the capacities of either party alone.

The study introduces the concept of synthetic dynamic capabilities - capabilities that are instantly scalable, perfectly replicable, and continuously evolvable without traditional resource constraints. This challenges core assumptions in strategic management regarding resource scarcity and competitive advantage. The research also identifies AI-intensified paradoxes that organizations must embrace to sustain ongoing transformation.

By theorizing organizational metamorphosis, this study offers new insights into human-AI hybrid entities, reconceptualizes sources of competitive advantage, and provides practical guidance for leaders navigating deep AI integration.

Recommended Citation

Glass, Allan M., "Organizational Metamorphosis: When Artificial Intelligence Transforms Companies into New Economic Life Forms" (2025). All Dissertations. 4018.
https://open.clemson.edu/all_dissertations/4018