Influencing factors of digital transformation: management or IT is the driving force?

Abstract

Purpose This research aims to discuss the success of digital transformation focusing on the role of IT and management commitment in digitalization together with sectorial relevance as influencing factors. According to the literature, these dimensions are key elements of digitalization, and there is no consensus on their decisiveness. The authors measure the success of digital transformation with the digital innovation. The research is part of ongoing work, in which the IT-related practice of Hungarian organizations has been explored on an annual basis since 2009. Design/methodology/approach The research methodology is a combined one; both qualitative and quantitative methods were applied including surveying digital transformation literature, interviews with key representatives of Hungarian organizations, developing a survey to collect quantitative data, data collection and processing with PLS-SEM. Findings The results revealed that the digital innovations are strongly determined by business, management commitment and, to a far lesser extent, by strategy. In the case of digital transformation, the role of IT departments and the services they provide are less relevant. Research limitations/implications The most important limitation of the research is the size and composition of the sample. Results do not present the situation of a specific industrial sector. Originality/value Digital technologies influence and disrupt practically every industry; the development of information and communication technology has changed economies all over the world. Decisive factors of digital transformations are widely researched, but there is no consensus about them. This research contributes to understanding the role of IT department and their services in this process together with leadership, sectorial relevance as influencing factors.