Examining the Effect of Digital Capability on Organizational Performance with the Mediating Role of Digital Culture and Digital Transformation Strategy
Keywords:
digital transformation strategy, organizational performance, digital culture, digital capability, structural equation modelingAbstract
Digital technologies, including social networks, mobile technologies, cloud computing, and the Internet of Things, have compelled companies to undergo digital transformation in order to survive or maintain dominance in the market. Digital transformation refers to the integration of digital technologies into all areas of business; therefore, this integration leads to fundamental changes in performance. Since digital transformation requires digital fit, meaning the alignment of culture, strategy, and capabilities, this study seeks to examine the relationship among three key variables in the field of digital transformation: digital transformation strategy, digital culture, and digital capabilities. It also investigates the relationship of these three variables with organizational performance. This study adopts a deductive approach and is quantitative in nature. Data were collected using an electronic questionnaire. The statistical population of the study consisted of information technology companies in the country. The research hypotheses were tested using structural equation modeling with AMOS software. Based on the results, it can be stated that hardware companies had the lowest mean organizational performance, whereas software companies had the highest organizational performance. The results of the hypothesis testing indicated the positive effect of digital capability on organizational performance, digital culture, and digital strategy; the positive effect of digital culture on digital transformation strategy and organizational performance; and the positive effect of digital transformation strategy on organizational performance. Based on the findings, it can be concluded that the companies under study can improve their organizational performance by employing digital capabilities, enhancing digital culture, and adopting an appropriate digital transformation strategy.
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Copyright (c) 2025 Majid Yousefpour (Corresponding author)
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