AI-Enabled Detection of Governance Dilemmas in Digital Transformation Projects: A Micro-Longitudinal Study of Corporate Innovation Incubation

Digital Transformation (DT) increasingly relies on project-based organizing to develop and deploy new capabilities, yet corporate innovation projects frequently stall not for lack of ideas but because of recurring governance and resource-commitment bottlenecks. This study presents a micro-longitudinal, AI-enabled, and human-reviewed analysis of 711 episodes drawn from 28 weekly project governance meetings across two corporate startup initiatives participating in the same internal incubation program, conducted between November 2024 and April 2025. Employing a six-stage analytical pipeline that combines episode-level segmentation, linguistic tension markers, and a large language model (LLM) classifier, we identify 28 decision-relevant governance tensions, which are then abductively grouped into 13 project governance dilemmas and mapped onto Teece's dynamic capabilities framework (sensing, seizing, reconfiguring). The key finding is that 62% of dilemmas are structural in nature—reflecting persistent governance design tensions between autonomy and control, compliance and agility, and centralization and decentralization—and that 69% concentrate at the seizing stage, corresponding to resource-commitment and execution decisions. This pattern indicates a governance choke point in corporate DT projects that is structural and decisional rather than ideational. By shifting attention from lagging indicators (overruns) to governance-tension leading indicators, the approach supports earlier interventions to reduce decision latency and protect project delivery performance. We further synthesize two incubation-specific meso-level governance dilemmas—stakeholder engagement and compliance vs. agility—that serve as transmission mechanisms between macro structural constraints and micro-level decision bottlenecks. The AI-enabled pipeline is proposed as a replicable early-warning system for project governance tensions in organizations pursuing digital transformation.