Digital Alchemy: Unraveling the Moderating Roles of Digital Literacy and Employee Engagement
DOI:
https://doi.org/10.51153/mf.v19i2.685Keywords:
Human capital, social capital, structural capital, digital transformation, organizational culture, leadership vision, digital literacy, and employee engagementAbstract
Investment in technology enhances firms’ efficiency. As a result, they become more competitive and achieve sustainable growth. Factors that directly and indirectly affect digital transformation are human capital, social capital, organizational culture, leadership vision, digital literacy, and employee engagement. We examined the effect of these variables on digital transformation. The study collected data from firms investing in technology. It shows that human and social capital, organizational culture, and leadership vision positively affect digital transformation. The study also validates that digital literacy moderates the relationship between human capital and digital transformation. We also found that employee engagement moderates the relationship between leadership vision and digital transformation. Thus, we suggest that firms create a conducive culture where employees are willing to participate and share knowledge. Furthermore, we believe the leadership vision is also important for digital transformation. However, just developing a vision is insufficient; leaders must share their vision with all the firms' stakeholders. Doing so would make it easier.
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