The Impact of Digital Transformation on Organizational Performance: A Conceptual Framework Examining the Mediating Role of Data-Driven Decision-Making

International Journal of Business Society, Vol. 8, Issue 10
Mansour Khalifa HamadAbdulathim Abduljalil Ahmed
Digital TransformationOrganizational PerformanceData-Driven Decision MakingConceptual framework
PDFRegular IssueDOI: 10.30566/ijo-bs/2024.10.139
8Volume
10Issue

Abstract

In an era of rapid technological advancement, digital transformation (DT) has emerged as a critical driver of organizational performance, enabling innovation, operational efficiency, and enhanced decision-making processes. While DT provides the technological infrastructure for success, its full potential is often mediated by data-driven decision-making (DDD), which translates data insights into strategic and operational improvements. This study examines the mediating role of DDD in the relationship between DT and organizational performance, drawing on theoretical frameworks such as the Resource-Based View (RBV) and Dynamic Capabilities Theory. Findings highlight that organizations leveraging DT alongside robust DDD practices experience superior performance outcomes by fostering agility, adaptability, and evidence-based decision-making. Furthermore, leadership and organizational culture are identified as key moderating factors that influence the success of DT and DDD initiatives. By addressing barriers such as resistance to change, ethical concerns, and technological complexity, this study provides a conceptual framework for organizations to align DT initiatives with strategic objectives and foster a data-centric culture.

References

[1]

Arsal, R. E., Durdu, H. T., & Tongarlak, M. (2022). Organizational enablers of data- driven digital transformation: A case study from the banking industry. 2022 IEEE Technology and Engineering Management Conference (TEMSCON EUROPE), 210 -216.

[2]

Atobishi, T., Bakir, S. M. A., & Nosratabadi, S. (2024). How do digital capabilities affect organizational performance in the public sector? The mediating role of organizational agility.

[3]

Chaudhuri, R., Vrontis, D., & Chatterjee, S. (2024). Reimaging emerging technologies for digital transformation and growth trajectory of organizations in new normal: The moderating role of organizational data -driven culture.

[4]

Deep, G. (2023). Digital transformation's impact on organizational culture.

[5]

Guo, L., & Xu, L. (2021). The effects of digital transformation on firm performance: Evidence from China’s manufacturing sector.

[6]

Huang, D., Gao, Q., Peng, C., Yang, K., & Liu, R. (2023). A study on the impact of different organizational levels on digital transformation in enterprises.

[7]

Iraqi, B., Benhiba, L., & Idrissi, M. A. J. (2023). Data- driven transformation in investment banks. 2023 IEEE 6th International Conference on Cloud Computing and Artificial Intelligence.

[8]

Lo, H.-W., Siao, Z., & Siao, L. (2023). Exploring the role of multiple criteria decision-making in enterprise digital transformation.

[9]

Lyu, W. (2024). Unveiling the nexus: Digital transformation leadership, business model innovation, and performance in China's banking sector.

[10]

Malik, S. (2024). Data- driven decision-making: Leveraging the IoT for real-time sustainability in organizational behavior.

[11]

Nguyen, N. P., & Hoai, T. T. (2022). The impacts of digital transformation on data-based ethical decision-making and environmental performance in Vietnamese manufacturing firms: The moderating role of organizational mindfulness.

[12]

Nitsche, A.-M., Matthias, O., Laroque, C., & Schumann, C.-A. (2020). Technological and organizational readiness in the age of data -driven decision making: A manufacturing perspective.

[13]

Salih, A. A., Alsalhi, L., & Abou-Moghli, A. (2024). Entrepreneurial orientation and digital transformation as drivers of high organizational performance: Evidence from Iraqi private banks.

[14]

Senadjki, A., Yong, H. N. A., Ganapathy, T., & Ogbeibu, S. (2023). Unlocking the potential: The impact of digital leadership on firms' performance through digital transformation.

[15]

Sheng, H., Feng, T., & Liu, L. (2022). The influence of digital transformation on low-carbon operations management practices and performance: Does CEO ambivalence matter? International Journal of Production Research, 61, 6215-6229.

[16]

Shin, J., Mollah, M. A., & Choi, J. (2023). Sustainability and organizational performance in South Korea: The effect of digital leadership on digital culture and employees’ digital capabilities.

[17]

Sun, L., & Wang, Y. (2022). Improving and evaluating business management in the digital economy based on data analysis.

[18]

Supriadi, A., & Mulyani, A. S. (2024). Digital transformation in operational management: A systematic review of current trends and practices.

[19]

Wang, H., Feng, J., Zhang, H., & Li, X. (2020). The effect of digital transformation strategy on performance.

[20]

Windt, B., Borgman, H. P., & Amrit, C. (2019). Understanding leadership challenges and responses in data-driven transformations.

Article Information

Article Details
Volume & IssueVol. 8, Iss. 10
Publication DateOct 20, 2024
Authors
Mansour Khalifa Hamad
Abdulathim Abduljalil Ahmed
DOI
10.30566/ijo-bs/2024.10.139
PDF Download