Digital transformation dilemma in the era of changing dynamics: How organizational culture influence the success of digital transformation

Abstract

BACKGROUND: Digital transformation has become one of the most important topics in business, as companies try to use technology to improve their processes and gain a competitive edge. However, the success of digital transformation projects can be affected by organizational culture, which can make it easier or harder for digital transformation projects to be successfully implemented. OBJECTIVE: This study seeks to investigate the impact of organizational culture on the success of digital transformation. The study measures dimensions of organizational culture and how they impact the success of digital transformation projects. METHODS: 264 employees from various firms provided information via a questionnaire, and the study used Structural Equation Modelling (SEM) with AMOS software to evaluate the information and develop the proposed conceptual framework. RESULTS: The results demonstrate that employee empowerment has a positive and significant impact on digital transformation, while new organizational practice, support of change, and teamwork do not. CONCLUSIONS: These findings are crucial for advancing the current understanding of the role of organizational culture in the success of digital transformation projects. By shedding light on this relationship, this study contributes to the literature on digital transformation and provides organizations with insights that can inform their digital transformation strategies.