Evaluating the Impact of Digital Strategy, Culture, and Information Technology Capability on Digital Transformation: The Moderating Role of Leadership
Author(s)
Download Full PDF Pages: 27-58 | Views: 39 | Downloads: 17 | DOI: 10.5281/zenodo.16731580
Abstract
In today’s fast-paced and ever-evolving business environment, organizations, particularly large enterprises, must continuously adapt and innovate to remain competitive. As Egypt pursues digital transformation as a key driver of economic and organizational growth, enterprises in the ICT sector play a pivotal role in this transition. To successfully execute digital transformation, organizations must develop some organizational capabilities including robust strategies, cultivate a strong digital culture, and enhance IT capabilities. All while leveraging effective leadership to guide these efforts. This research aims to investigate the impact of organizational capabilities, digital strategy formulation, cultural values, and IT business capability, on digital transformation execution, with a specific focus on the moderating role of digital leadership. This research adopts a quantitative methodology, utilizing a non-probabilistic sampling technique through convenience and snowball sampling methods. The sample consists of 308 employees from top, middle, and first-line management positions within ICT sector organizations. Hypotheses are tested using appropriate statistical techniques. The findings reveal that organizational factors, including strategy formulation, cultural values, and IT business capability, have a positive impact on digital transformation execution within these organizations. Furthermore, leadership characteristics are found to positively moderate the relationship between the organization capabilities and Digital Transformation except for IT business capability, which operates independently of leadership and shows no moderating effect.
Keywords
ICT, Large Enterprises, organizational capabilities, Digital strategy, Digital Culture, IT Capability, Digital Leadership, Digital Transformation
References
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. SAGE Publications.
AlNuaimi, B. K. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research.
Alotaibi, R. (2021). International Transaction Journal of Engineering, Management, & Applied Sciences & TechnologieS. Arabia, The Adoption of Digital Transformation in the Ministry of Education in Saudia.
Al-Ruithe, M. B. (2018). Key issues for embracing the cloud computing to adopt a digital transformation. 9th International Conference on Ambient Systems, Networks and.
Amaliyah. (2019). usiness: Innovation: Implementation Digital Transformation and Digital Leadership in Era Industrial Revolution 4.0. . Advances in Economics, Business and Management Research, volume 98.
Antonio L., C. S. (2023). Digitalization beyond technology: Proposing an explanatory and predictive model for digital culture in organizations. Journal of Innovation & Knowlege.
Araujo, L. &. (2021). Digital leadership in business organizations: an overview. . International Journal of Educational Administration, Management, and Leadership. 5-16.
Attaran, M. (2020). The impact of digital transformation on company performance: A review of empirical evidence. Journal of Business Research, 120,, 23-39.
Avolio, B. J. (2000). E-leadership: implications for theory, research, and practice. . The Leadership Quarterly. .
Awamleh, F. T. (2022). The relationship between information technology capabilities, organizational intelligence, and competitive advantage. SAGE Open, 11(2).
Baltes, S. &. (2022). Sampling in software engineering research: A critical review and guidelines. . Empirical Software Engineering, 27(1), Article 78.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.
Bloomberg, J. (2019). Digitization, digitalization, and digital transformation: confuse them at your peril. Forbes 28.
Boonlua, S. L. (2023). Digital Transformation Maturity and Digital Strategy Formulation Leads to Business Model Innovation. International J. of Opers. and Quant. Management, 115-134.
Brunner, M. &.-C. (2021). How Digital Leadership competences and IT Capabilities affect an organization's ability to digitally transform and adopt new technologies. Journal of International Technology and Information Management.
Cha, J. C. (2023). The evolving landscape of digital transformation: Strategy, implementation, and value delivery. Journal of Business Strategy, 44(2),, 134-150.
Correani, A. D. (2020). Implementing a digital strategy: Learning from the experience of three digital transformation projects. California Management Review, 62(4),, 37-56.
Dehimat, A. &. (2022). Reviewing the literature on the link between Digital Leadership characteristics and Digital Transformation Based on Dynamic Capabilities. Journal of Economic Growth and Entrepreneurship .
Demir, K. K. (2019). Maturity assessment in the technology business within the McKinsey's 7S framework. . Research Journal of Business and Management, 6(3),, 158-166.
Denning, S. (2023). Recognizing and outmaneuvering the resistance to digital transformation. . Strategy & Leadership, 51(2), 10-16.
Doe, J. (2022). The impact of digital transformation on business performance. Global Business Review, 14(1), 78-95.
E-Governmental, U. (2022). https://publicadministration.un.org/egovkb/en-us/Data/Country-Information/id/53-Egypt.
Erku, D. K. (2023). Digital Health Interventions to Improve Access to and Quality of Primary Health Care Services: A Scoping Review. International Journal of Environmental Research and Public Health, 20(19), 6854.
Field, A. (2018). Discovering statistics using IBM SPSS statistics (5th ed.). SAGE Publications.
Gasperlin, B. &. (2021). Influencing Factors of Digital Transformation in SMEs – Literature Review. 40TH INTERNATIONAL CONFERENCE ON ORGANIZATIONAL SCIENCE DEVELOPMENT.
Ghezzi, A. &. (2020). Agile business model innovation in digital entrepreneurship: Lean startup approaches. Journal of Business Research, 110, 519-537.
Gong, C. &. (2020). Developing a unified definition of digital transformation. Technovation, 2.
Goran, J. L. ( 2017). Culture for a digital age. McKinsey Q. 3, 56-67.
Grace, A. (2017). conceptualizing Digital Transformation in Business Organizations: A Systematic Review of Literature. . Conference: 30th Bled eConference: Digital Transformation, 3.
Gray, D. E. (2021). Doing research in the real world (5th ed.). SAGE Publications.
Grover, V. C. (2020). Leveraging big data and analytics to transform digital business strategy. Journal of Management Information Systems, 35(2),, 388-423.
Guo, L. &. (2021). The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector. Sustainability, 13(22), 12844.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
Hammami, S. M. (2024). Digital leadership capabilities moderating effect in improving the organisational performance of telecom companies through the organisational knowledge capabilities pillars. Journal of Infrastructure, Policy and Development, 8(13)
Hanelt, A. &. (2020). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5),, 1159-1197.
Holgeid, K. H.-T. (2019). What Is Digital Organizational Culture? Insights From Exploratory Case Studies. In Proceedings of the 52nd Hawaii International Conference on System Sciences , 5126-5135.
International Finance Corporation (IFC). (2019). Women on boards in Egypt: How gender-diverse boards bring value to Egyptian companies. World Bank Group
Isensee S., B. J. (2020). Characteristics in Digital Organizational Culture: A Literature Review. Journal of Business Research, 123,, 90-101.
Jesper P., K. M. (2022). Towards the new normal : Digital transformation through digital leadership and digital transformation strategies. Linaus University , Swedan.
Jones, M. &. (2019). Transforming business through digitalization. Business Innovation Journal, 8(2), 123-139.
Jović M, T. E. (2022). Factors of Digital Transformation in the Maritime Transport Sector. Sustainability.
Kadam, P. &. (2020). Sample size calculation. International Journal of Ayurveda Research, 11(3),, 55-57.
Kaganer, E. G. (2023). Overcoming Organizational Inertia in Digital Transformation: Lessons from a Major Bank's Journey. . Journal of the Association for Information Systems.
Kamel, S. (2021). The Potential Impact of Digital Transformation on Egypt . Working Papers 1488, Economic Research Forum.
Kim S, K. B. (2020). mpacts of Sustainable Information Technology Capabilities on Information Security Assimilation: The Moderating Effects of Policy—Technology Balance. Sustainability.
Kirsty W., G. J. (2018). Research Methods (Second Edition), Chapter 6 - Survey designs,. Chandos Publishing.
Kitsios, F. K. (2023). Drivers and outcomes of digital transformation: The case of public sector services. Information, 14(1), 43.
Klein, M. (2020). Leadership Characteristics In The Era Of Digital . BMIJ, 8(1), 883-902.
Korachi, Z. &. (2020). General Approach for Formulating a Digital Transformation Strategy. . Journal of Computer Science, 16(4), 493-507.
Kraus, S. &.-B.-T. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. . SAGE Open, 11(3).
Lee, E. L. (2022). Developing your digital maturity for competitive advantage: From models to practices in enabling digital transformation. . WARWICK Business School.
Lee, K. (2021). Digital transformation as a competitive strategy. International Journal of Business Strategy, 15(4), 210-225.
Li, H. W. (2021). Organizational mindfulness towards digital transformation as a prerequisite of information processing capability to achieve market agility. Journal of Business Research,.
Magesa, M. &. (2020). Digital leadership for digital transformation. Journal of Digital Transformation, 5(1),, 45-58.
Majeed, I. (2020). Understanding Positivism in Social Research: A Research Paradigm of Inductive Logic of Inquiry. . International Journal of Research in Social Sciences .
Martínez-Caro, E. C.-N.-R. (2020). Digital technologies and firm performance: the role of digital organisational culture. Technol. Forecast. Soc. Chang.
MCIT. (2022). MCIT Year Book , Ministry of Communication and Information Technology.
Memon, M. A.-H. (2020). Determining Sample Size for Research Activities:: Review and Recommendations. Journal of Applied Structural Equation Modeling, 4(2).
Mikalef, P. &. (2022). An Introduction to Digital Transformation. Digital Transformation in Norwegian Enterprises , (pp.1-10).
Mohammed, C. &. (2021). Sufficient Comparison Among Cloud Computing Services: IaaS, PaaS, and SaaS: A Review. International Journal of Science and Business, 5(2), , 17-30.
Murshed, N. A. (2023). Navigating the Digital Marketplace: A Holistic Model Integrating Social Media Engagement and Consumer Behavior Factors to Enhance Online Shopping Adoption. Journal of Theoretical and Applied Management (Jurnal Manajemen Teori Dan Terapan), 16(3), , 542-559.
Nasiri, M. U. (2020). Managing the digital supply chain: The role of smart technologies. Technovation. School of Engineering Science.
Nasution, R. &. (2020). Digital Mastery in Indonesia: The Organization and Individual Contrast. Journal of Management Development.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill.
Ongena, G., Morsch, P., & Ravesteijn, P. (2024). Digital leadership competency to enhance digital transformation. International Journal of Innovation and Technology Management, 21(6)
Pallant, J. (2020). SPSS survival manual: A step by step guide to data analysis using IBM SPSS (7th ed.). Routledge.
Pascal R., G. O. (2020). The Role of e-leadership in relation to IT capabilities abd digital transformation. 12th IADIS International Conference Information Systems.
Pedersen, C. L. (2022). Cracking the Culture Code for Successful Digital Transformation. MIT Sloan Management Review.
Peng, B. (2021). Digital leadership: State governance in the era of digital technology. Cultures of Science.
Proksch, D. R. (2021). The Influence of a Digital Strategy on the Digitalization of New Ventures: The Mediating Effect of Digital Capabilities and a Digital Culture. ournal of Small Business Management. .
Qiao, G., Li, Y., & Hong, A. (2024). The strategic role of digital transformation: Leveraging digital leadership to enhance employee performance and organizational commitment in the digital era. Systems, 12(457)
Ramadan M, B. Z. (2023). Toward Digital Transformation and Business Model Innovation: The Nexus between Leadership, Organizational Agility, and Knowledge Transfer. Administrative Sciences.
Rehman K. S., A. Z. (2022). Digital transformation, smart technologies, and eco-innovation are paving the way toward sustainable supply chain performance. Science Progress.
Reiter, M. &. (2020). Digital transformation of organisations in the context of ITIL® 4. Journal of Business Research, 109, 89-101.
Ridwandono, D. &. (2019). IT and Organizational Agility: A Critical Literature Review. Procedia Computer Science. 161. , 151-159.
Saeed, S. A. (2023). Digital Transformation and Cybersecurity Challenges for Businesses Resilience: Issues and Recommendations. Sensors, 23(15), 6666.
Salah, P. (2022). The Role of Digital Organizational Culture in Organizational Development In light of Digital Transformation adoption in Egypt. Arab Journal of Administration, Vol. 45, No. 4.
Saputro, N. C. (2022). The Influence of IT Infrastructure Capability, IT Business Spanning Capability, and IT Proactive Stance on Organizational Performance, mediated by Organizational Agility. 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey. IEOM Society International. .
Saunders, M. L. (2019). Research methods for business students (8th ed.). . Pearson.
Schein, E. H. (2004). Organizational Culture and Leadership. San Francisco: Jossey-Bass
Schiuma G., S. E. (2021). The transformative leadership compass: six competencies for digital transformation entrepreneurship. International Journal Of Entrepreneurial Behavior & Research.
Sebastian, I. M., Ross, J. W., Beath, C. M., Mocker, M., Moloney, K. G., & Fonstad, N. O. (2017). How big old companies navigate digital transformation. MIS Quarterly Executive, 16(3), 197-213.
Shin, J. &.-H. (2023). Sustainability and Organizational Performance in South Korea: The Effect of Digital Leadership on Digital Culture and Employees’ Digital Capabilities. Sustainability.
Smith, J. A. (2023). The Evolution of Digital Strategies and Information Gathering Techniques in Modern Enterprises. Journal of Digital Business Strategy, 15(2),, 134-152.
Smith, J. J. (2020). The rise of the digital economy. Journal of Digital Transformation. Journal of Digital Transformation, 45-67.
Steiber, A. a. (2023). Culture and technology in digital transformations: how large companies could renew and change into ecosystem businesses. European Journal of Innovation Management.
Teguh, M. N. (2022). Exploring Characteristics of Digital Organizational Culture in Post COVID-19: A Systematic Literature Review. Journal of International Conference Proceedings (JICP) Vol.5 No., pp. 38-51.
Teng, X. &. (2022). Research on the Relationship between Digital Transformation and Performance of SMEs. Sustainability.
Thuy, N. (2021). Strategy, Culture, Human Resource, IT Capability, Digital Transformation and Firm Performance–Evidence from Vietnamese Enterprises. Behavioral Predictive Modeling in Economic.
TM, F. (2023). Digital Maturity Model ,. https://www.tmforum.org/digital-transformation-maturity/.
Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. Lexington Books.
Uğural, M. N. (2020). Determinants of the Turnover Intention of Construction Professionals: A Mediation Analysis. Sustainability.
UN. (2019). United Nations , Global Sustainable Development Report 2019.
Van Riel, J. &. (2023). Exploring Capability Mapping as a Tool for Digital Transformation: Insights from a Case Study. Journal of Business Research, 145, 123-134.
Van Veldhoven, Z. V. (2019). Designing a comprehensive understanding of digital transformation and its impact. 32nd Bled eConference: Humanizing, 745-763.
Verhoef, P. C. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122,, 889-901.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.
Vrontis, D. C. (2022). Adoption of digital technologies by SMEs for sustainability and value creation: Moderating role of entrepreneurial orientation. Sustainability, 14(13), 7949.
Wang T, L. X. (2022). Digital leadership and exploratory innovation: From the dual perspectives of strategic orientation and organizational culture. Frontiers in Psychology.
Wanzhen Q., Y. J. (2023). How to realize value creation of digital transformation? A system dynamics model. Expert Systems with Applications, 211.
Warner, K. S. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349.
Westerman, G. B. (2020). Leading digital: Turning technology into business transformation. Harvard Business Review Press.
Yao, Q. T. (2023). The penetration effect of digital leadership on digital transformation: The role of digital strategy consensus and diversity types. Journal of Enterprise Information Management, 37(3),, 903-927.
Zhang H, D. H. (2023). How Organizational Agility Promotes Digital Transformation: An Empirical Study. Sustainability, 15(14), 11304.
Zhang, G., Wang, T., Wang, Y., Zhang, S., Lin, W., Dou, Z., & Du, H. (2023). Study on the Influencing Factors of Digital Transformation of Construction Enterprises from the Perspective of Dual Effects—A Hybrid Approach Based on PLS-SEM and fsQCA. Sustainability.
Zhang, X., Xu, Y., & Ma, L. (2022 ). Successful Factors and Influencing Mechanism of the Digital Transformation in SMEs. Sustainability.
Zhen, Z. &. (2021). Nexus of Digital Organizational Culture, Capabilities, Organizational Readiness, and Innovation: Investigation of SMEs Operating in the Digital Economy. . Sustainability.
Zolfagharian, M. &. (2019). Studying transitions: Past, present, and future. Research Policy
Cite this Article: