The Effect of Digital Transformation on Organizational Performance by A Mediating Role of Digital Innovation

Abstract

Organizations face much pressure to deal with rapid changes in technologies as well as the way of working. Digital transformation helps them keep up with these changes, but there are still many aspects that organizations need to deal with in a highly competitive environment. Therefore, there is a need for a comprehensive overview of the effect of digital transformation on the Saudi companies. To fill this gap, Research aims to examine the effect of digital transformation on organizational performance by a mediating role of digital innovation. A survey was conduct of employees working for Saudi telecommunication companies (STC, Zain, and Mobily), by using the component-based partial least squares method to analyze the 170 completed questionnaires. The results indicate that there is a relationship between digital transformation and organizational performance, mediated by digital innovation. And noted that the social and technological perspectives of digital transformation have a significant impact on digital innovation. Finally, the findings encourage large companies to take the opportunity to adopt digital transformation and digital innovation to boost their performance from all organizational perspectives.