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VOL. 1, ISSUE 1 (2025)
The impact of digital transformation on employee performance: Examining the mediating role of digital skills and work engagement
Authors
Abimata Dwiokta Rochaddi
Abstract
Drawing on the Technology-Organisation-Environment
(TOE) framework and Self-Determination Theory, we examine how digital
transformation affects individual-level outcomes through skill enhancement and
motivational mechanisms. Using survey data from 1,847 employees across 156
organisations in various industries collected between 2022 and 2024, we employ
structural equation modelling to test our hypotheses. Our findings reveal that
digital transformation has a significant positive direct effect on employee
performance, with this relationship being partially mediated by both digital
skills development and work engagement. Specifically, digital transformation
initiatives enhance employees' technical competencies and autonomy, leading to
higher engagement levels and subsequently improved job performance. The mediation
analysis demonstrates that 67% of the total effect of digital transformation on
performance operates through these mediating pathways. Additionally, we find
that the positive effects are stronger for employees in knowledge-intensive
roles and organisations with supportive digital cultures. The study highlights
the importance of investing in employee skill development and maintaining high
engagement levels during digital transformation processes to maximise
performance benefits.
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Pages:19-23
How to cite this article:
Abimata Dwiokta Rochaddi "The impact of digital transformation on employee performance: Examining the mediating role of digital skills and work engagement". World Journal of Research in All Subject, Vol 1, Issue 1, 2025, Pages 19-23
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