Navigating digital transformation

: nexus of organizational culture & key success factors

Abstract

Digital transformation is a major focus for organizations in the evolving business landscape. Digital transformation is high on the agenda of most organizations in the current dynamic business environment. Against this background, this research aims to explore the link between Organizational Cultural Values and the Key Success Factors of digital transformation efforts. The Competing Values Framework (CVF) provided the theoretical underpinning for this study, and which categorizes culture as Clan, Adhocracy, Market and Hierarchy. A mixed-method approach including a Delphi study and a cross-sectional survey were conducted and reveal that Clan and Adhocracy have a positive impact on the success of digital transformation efforts. The findings further show that the Key Success Factors influencing digital transformation efforts include business and IT alignment, agile management, and employee training. On the other hand, Hierarchical culture, characterized by rigidity and formalization, negatively affects these factors. Market culture which is driven by competition and goal orientation had a moderate positive impact. This research contributes to the existing literature by providing empirical evidence that supports the importance of Clan and Adhocracy cultures to successful digital transformation. From a managerial perspective, this research recommends that organizations seeking to transform digitally to develop these two cultures by encouraging collaboration, trust, teamwork, and innovation. Aligning digital strategies with cultural values, developing digital leaders, encouraging multi disciplinary teamwork, and investing in continuous employee development are vital for building digital capabilities and ensuring transformation success.

Date of Award	28 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Duarte João Ferreira (Supervisor)