The Impact of the COVID-19 Crisis on the Digital Transformation of Organizations

Abstract

The paper aims to analyze the digital transformation process’s defining elements in the COVID-19 crisis. Starting from our main objective, which consists of a critical analysis of the defining elements of the digital transformation process in the conditions of the COVID-19 crisis, we formulate the following specific objectives: to analyze the contribution of external organizational factors to put into practice the new opportunities created by the organization’s digital transformation; to evaluate the impact of digital competencies on the digital transformation of organizations; and to analyze the role of new technologies in developing digital competencies. We used the partial least squares structural equation modeling (PLS-SEM) and the bootstrapped method to evaluate the model fit, and the model was tested by SmartPLS4 software. Our research is based on information from 203 employees with authority for decision making about the digital transformation strategy in their organizations undergoing a digital transformation process. Our findings revealed that organizations, regardless of size, profile, or field of activity, are affected by changes induced by new technologies and the crisis generated by COVID-19. Therefore, formulating a digital transformation strategy must aim to minimize the risks of obsolescence and maximize the results from exploiting new digital resources. However, our results do not prove that COVID-19 crises directly and positively influence the development of digital competencies. This leads us to conclude that developing these competencies is a continuous process unaffected by disruptive factors such as crises. Instead, the development of digital competencies is influenced by new technologies. Therefore, the COVID-19 crisis directly and positively influences organizations’ developing and implementing a digital transformation strategy and new technologies. The theoretical contribution of our research consists of an explanation of the role of perturbator factors, such as the crisis generated by COVID-19, in developing digital competencies and improving digital transformation. The practical contributions are dedicated to managers that should have a different approach to the negative phenomena that will be considered catalytic factors of the digital transformation and disruptive factors of the organizational climate.