Digital Transformation Management and Organizational Performance: The Mediating Role of Organizational Agility and the Moderating Effect of Technological Readiness

Abstract

This study examined the relationship between digital transformation management and organizational performance, while considering the mediating role of organizational agility and the moderating effect of technological readiness. A quantitative research design was applied, and data were collected from a sample of 320 employees working in technology-driven and service-based organizations. Structural equation modelling was used to test the proposed hypotheses and examine direct, mediating, and moderating relationships. The results revealed that digital transformation management significantly influenced organizational performance (β = 0.61, p < 0.001). Organizational agility also showed a significant positive effect on performance (β = 0.47, p < 0.001). Mediation analysis confirmed that organizational agility partially mediated the relationship between digital transformation and performance, with an indirect effect of β = 0.29 (p < 0.001). Furthermore, technological readiness significantly moderated the relationship between digital transformation and organizational agility (β = 0.21, p = 0.001), indicating a stronger effect at higher levels of readiness. The model explained a substantial proportion of variance in organizational performance (R² = 0.58), demonstrating strong explanatory power. The findings concluded that digital transformation alone was insufficient for achieving superior performance unless supported by organizational agility and technological readiness. Organizations that integrated digital capabilities with agile structures and advanced technological infrastructure achieved higher efficiency, adaptability, and overall performance. The study contributed to the growing literature on digital transformation by providing an integrated framework that combined mediation and moderation mechanisms within a single model.

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