Managing digital transformation in a global environment: The role of national culture
Keywords:
National Culture, Digital competencies, Information System Management Practices, Digital Transformation, Leadership.
Abstract
In today's fast-changing business environment, digital transformation has become an essential strategic imperative for companies seeking to maintain a competitive edge. However, research on the effect of national culture on digital transformation is lacking. This study seeks to address this gap by investigating the effect of national culture on digital transformation, with a focus on the mediating role of digital competencies and information system management practices, as well as the moderating effect of leadership. 250 managers and employees with digital transformation experience across various industries in Saudi Arabia were surveyed. Structural equation modeling (SEM) was employed to analyze and test the research hypotheses. The findings demonstrate that national culture significantly affects digital transformation, with digital competencies and information system management practices acting as mediators. Furthermore, the study discovered that leadership plays a moderating role in the relationship between national culture and digital transformation. The positive impact of national culture on digital transformation is amplified when there is a transformational leadership style in place. These insights hold significant implications for organizations embarking on digital transformation initiatives, emphasizing the importance of fostering a culture encourages digital innovation and risk-taking, investing in digital capabilities and effective information system management, and nurturing transformational leadership to drive successful digital transformation efforts.
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References
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Hidalgo, F. J. P., Parra, M. A. E. G., & Abril, C. A. H. (2020). Digital and media competences: Key competences for EFL teachers. Teaching English with Technology, 20(1), 43-59.
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15.
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Jedwab, R. M., Gogler, J., Redley, B., Nagle, L., & Strudwick, G. (2023). Validation and prioritisation of health informatics competencies for Australian nursing and midwifery leaders: A modified Delphi study. International Journal of Medical Informatics, 170, 104971. https://doi.org/https://doi.org/10.1016/j.ijmedinf.2022.104971
Johri, A., & Kumar, S. (2023). Exploring Customer Awareness towards Their Cyber Security in the Kingdom of Saudi Arabia: A Study in the Era of Banking Digital Transformation. Human Behavior and Emerging Technologies, 2023. https://doi.org/10.1155/2023/2103442
Kim, D., Yagi, H., & Kiminami, A. (2023). Exploring information uses for the successful implementation of farm management information system: A case study on a paddy rice farm enterprise in Japan. Smart Agricultural Technology, 3, 100119. https://doi.org/https://doi.org/10.1016/j.atech.2022.100119
Leung, K., Bhagat, R. S., Buchan, N. R., Erez, M., & Gibson, C. B. (2005). Culture and international business: Recent advances and their implications for future research. Journal of international business studies, 36, 357-378.
Leidner, D. E., & Kayworth, T. (2006). A review of culture in information systems research: Toward a theory of information technology culture conflict. MIS quarterly, 357-399.
LIbert, B., Beck, M., & Wind, Y. (2016). Questions to ask before your next digital transformation. Harv. Bus. Rev, 60, 11-13.
López-Sosa, L. B., & García, C. A. (2022). Towards the construction of a sustainable rural energy system: Case study of an indigenous community in Mexico. Energy for Sustainable Development, 70, 524-536. https://doi.org/https://doi.org/10.1016/j.esd.2022.08.022
Nikmehr, B., Hosseini, M. R., Martek, I., Zavadskas, E. K., & Antucheviciene, J. (2021). Digitalization as a Strategic Means of Achieving Sustainable Efficiencies in Construction Management: A Critical Review. Sustainability, 13(9), 5040. https://doi.org/10.3390/SU13095040
Noguerón-Liu, S. (2020). Expanding the Knowledge Base in Literacy Instruction and Assessment: Biliteracy and Translanguaging Perspectives From Families, Communities, and Classrooms. Reading Research Quarterly, 55(S1), S307-S318. https://doi.org/10.1002/rrq.354
Obeidat, B. Y., Shannak, R. O., Masa’deh, R., & Al-jarrah, I. (2012). Toward better understanding for Arabian culture: Implications based on Hofstede’s cultural model. European Journal of Social Sciences, 28, 512-522.
Pinkovetskaia, I., Arbeláez Campillo, D., Rojas Bahamón, M., Gromova, T., & Nikitina, I. (2019). Female entrepreneurship development in the Russian Federation. Amazonia Investiga, 8(18), 111-118. Retrieved from https://amazoniainvestiga.info/index.php/amazonia/article/view/287
Robinson, S. C. (2020). Trust, transparency, and openness: How inclusion of cultural values shapes Nordic national public policy strategies for artificial intelligence (AI). Technology in Society, 63, 101421. https://doi.org/https://doi.org/10.1016/j.techsoc.2020.101421
Rowan, N. J., Murray, N., Qiao, Y., O’Neill, E., Clifford, E., Barceló, D., & Power, D. M. (2022). Digital transformation of peatland eco-innovations (‘Paludiculture’): Enabling a paradigm shift towards the real-time sustainable production of ‘green-friendly’ products and services. Science of The Total Environment, 838, 156328. https://doi.org/https://doi.org/10.1016/j.scitotenv.2022.156328
Sarango-Lapo, C. P., Mena, J., & Ramírez-Montoya, M. S. (2021). Evidence-Based Educational Innovation Model Linked to Digital Information Competence in the Framework of Education 4.0. Sustainability, 13(18), 10034. https://doi.org/10.3390/SU131810034
Schuchmann, D., & Seufert, S. (2015). Corporate learning in times of digital transformation: a conceptual framework and service portfolio for the learning function in banking organisations. International Journal of Corporate Learning (iJAC), 8, 31-39.
Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G., & Fonstad, N. O. (2020). How big old companies navigate digital transformation. Strategic information management. Routledge.
Shahatha Al‐Mashhadani, A. F., Qureshi, M. I., Hishan, S. S., Md Saad, M. S., Vaicondam, Y., & Khan, N. (2021). Towards the Development of Digital Manufacturing Ecosystems for Sustainable Performance: Learning from the Past Two Decades of Research. Energies, 14(10), 2945. https://doi.org/10.3390/EN14102945
Toring, H., Legaspi, G., Omolon, J., Amadeo, R., Amadeo, E., Opolentisima, Q., … & Cortes, S. (2022). Evaluation of students’ satisfaction toward an adopted learning management system at Indiana Aerospace University: A structural equation modelling approach. Asia Pacific Management Review. https://doi.org/https://doi.org/10.1016/j.apmrv.2022.12.002
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The journal of strategic information systems, 28, 118-144.
Weber, E., Büttgen, M., & Bartsch, S. (2022). How to take employees on the digital transformation journey: An experimental study on complementary leadership behaviors in managing organizational change. Journal of Business Research, 143, 225-238. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.01.036
Xu, S., & Hao, A. (2021). Understanding the impact of national culture on firms’ benefit-seeking behaviors in international B2B relationships: A conceptual model and research propositions. Journal of Business Research, 130, 27-37. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.02.062
Zeng, X., Zhao, Y., & Cheng, Z. (2021). Development and research of rural renewable energy management and ecological management information system under the background of beautiful rural revitalization strategy. Sustainable Computing: Informatics and Systems, 30, 100553. https://doi.org/https://doi.org/10.1016/j.suscom.2021.100553
Alghamdi, A. (2021). The Impact of EFL Teachers' Pedagogical Beliefs and Practices: Communicative Language Teaching in a Saudi University Context. English Language Teaching, 14(12), 171-182.
Alhosani, N. (2022). The Influence of Culture on Early Childhood Education Curriculum in the UAE. ECNU Review of Education, 5(2), 284-298. https://doi.org/10.1177/20965311221085984
Alkinani, E. A. (2021). Factors affecting the use of information communication technology in teaching and learning in Saudi Arabia universities. Psychology and Education Journal, 58(1), 1012-1022.
Alos-Simo, L., Verdu-Jover, A. J., & Gomez-Gras, J. M. (2017). How transformational leadership facilitates e-business adoption. Industrial Management and Data Systems, 117(2), 382-397. https://doi.org/10.1108/IMDS-01-2016-0038/FULL/PDF
Alshammari, K. H. (2023). The potential impacts of digital transformation on organizations. Amazonia Investiga, 12(64), 9-18. https://doi.org/10.34069/AI/2023.64.04.1
Anufrieva, Y. (2022). Formation of leadership skills of young specialists of transport industry. Transportation Research Procedia, 63, 1810-1816. https://doi.org/https://doi.org/10.1016/j.trpro.2022.06.198
Bemmami, K.-E., Gzara, L., Maire, J.-L., & Courtin, C. (2022). From digital traces to competences. IFAC-PapersOnLine, 55(10), 1944-1949. https://doi.org/https://doi.org/10.1016/j.ifacol.2022.09.683
Blanka, C., Krumay, B., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. https://doi.org/https://doi.org/10.1016/j.techfore.2022.121575
Busulwa, R., Pickering, M., & Mao, I. (2022). Digital transformation and hospitality management competencies: Toward an integrative framework. International Journal of Hospitality Management, 102, 103132. https://doi.org/https://doi.org/10.1016/j.ijhm.2021.103132
Caldwell, M. (2020). An investigation into the perceptions of Japanese University educators on the use of ICT in an EFL tertiary setting. CALL-EJ, 21(2), 1-16.
Cao, Y., & AlKubaisy, Z. M. (2022). Integration of computer-based technology in smart environment in an EFL structures. Smart Structures and Systems, 29(3), 375-387. https://doi.org/10.12989/sss.2022.29.2.375
Gasco-Hernandez, M., Gil-Garcia, J. R., & Luna-Reyes, L. F. (2022). Unpacking the role of technology, leadership, governance and collaborative capacities in inter-agency collaborations. Government Information Quarterly, 39(3), 101710. https://doi.org/https://doi.org/10.1016/j.giq.2022.101710
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203/FULL/XML
Hämäläinen, R., Nissinen, K., Mannonen, J., Lämsä, J., Leino, K., & Taajamo, M. (2021). Understanding teaching professionals’ digital competence: What do PIAAC and TALIS reveal about technology-related skills, attitudes, and knowledge? Computers in Human Behavior, 117, 106672. https://doi.org/https://doi.org/10.1016/j.chb.2020.106672
Hébert, C., Thumlert, K., & Jenson, J. (2022). #Digital parents: Intergenerational learning through a digital literacy workshop. Journal of Research on Technology in Education, 54(1), 34-91. https://doi.org/10.1080/15391523.2020.1809034
Hidalgo, F. J. P., Parra, M. A. E. G., & Abril, C. A. H. (2020). Digital and media competences: Key competences for EFL teachers. Teaching English with Technology, 20(1), 43-59.
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15.
Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1). https://doi.org/10.9707/2307-0919.1014
Jedwab, R. M., Gogler, J., Redley, B., Nagle, L., & Strudwick, G. (2023). Validation and prioritisation of health informatics competencies for Australian nursing and midwifery leaders: A modified Delphi study. International Journal of Medical Informatics, 170, 104971. https://doi.org/https://doi.org/10.1016/j.ijmedinf.2022.104971
Johri, A., & Kumar, S. (2023). Exploring Customer Awareness towards Their Cyber Security in the Kingdom of Saudi Arabia: A Study in the Era of Banking Digital Transformation. Human Behavior and Emerging Technologies, 2023. https://doi.org/10.1155/2023/2103442
Kim, D., Yagi, H., & Kiminami, A. (2023). Exploring information uses for the successful implementation of farm management information system: A case study on a paddy rice farm enterprise in Japan. Smart Agricultural Technology, 3, 100119. https://doi.org/https://doi.org/10.1016/j.atech.2022.100119
Leung, K., Bhagat, R. S., Buchan, N. R., Erez, M., & Gibson, C. B. (2005). Culture and international business: Recent advances and their implications for future research. Journal of international business studies, 36, 357-378.
Leidner, D. E., & Kayworth, T. (2006). A review of culture in information systems research: Toward a theory of information technology culture conflict. MIS quarterly, 357-399.
LIbert, B., Beck, M., & Wind, Y. (2016). Questions to ask before your next digital transformation. Harv. Bus. Rev, 60, 11-13.
López-Sosa, L. B., & García, C. A. (2022). Towards the construction of a sustainable rural energy system: Case study of an indigenous community in Mexico. Energy for Sustainable Development, 70, 524-536. https://doi.org/https://doi.org/10.1016/j.esd.2022.08.022
Nikmehr, B., Hosseini, M. R., Martek, I., Zavadskas, E. K., & Antucheviciene, J. (2021). Digitalization as a Strategic Means of Achieving Sustainable Efficiencies in Construction Management: A Critical Review. Sustainability, 13(9), 5040. https://doi.org/10.3390/SU13095040
Noguerón-Liu, S. (2020). Expanding the Knowledge Base in Literacy Instruction and Assessment: Biliteracy and Translanguaging Perspectives From Families, Communities, and Classrooms. Reading Research Quarterly, 55(S1), S307-S318. https://doi.org/10.1002/rrq.354
Obeidat, B. Y., Shannak, R. O., Masa’deh, R., & Al-jarrah, I. (2012). Toward better understanding for Arabian culture: Implications based on Hofstede’s cultural model. European Journal of Social Sciences, 28, 512-522.
Pinkovetskaia, I., Arbeláez Campillo, D., Rojas Bahamón, M., Gromova, T., & Nikitina, I. (2019). Female entrepreneurship development in the Russian Federation. Amazonia Investiga, 8(18), 111-118. Retrieved from https://amazoniainvestiga.info/index.php/amazonia/article/view/287
Robinson, S. C. (2020). Trust, transparency, and openness: How inclusion of cultural values shapes Nordic national public policy strategies for artificial intelligence (AI). Technology in Society, 63, 101421. https://doi.org/https://doi.org/10.1016/j.techsoc.2020.101421
Rowan, N. J., Murray, N., Qiao, Y., O’Neill, E., Clifford, E., Barceló, D., & Power, D. M. (2022). Digital transformation of peatland eco-innovations (‘Paludiculture’): Enabling a paradigm shift towards the real-time sustainable production of ‘green-friendly’ products and services. Science of The Total Environment, 838, 156328. https://doi.org/https://doi.org/10.1016/j.scitotenv.2022.156328
Sarango-Lapo, C. P., Mena, J., & Ramírez-Montoya, M. S. (2021). Evidence-Based Educational Innovation Model Linked to Digital Information Competence in the Framework of Education 4.0. Sustainability, 13(18), 10034. https://doi.org/10.3390/SU131810034
Schuchmann, D., & Seufert, S. (2015). Corporate learning in times of digital transformation: a conceptual framework and service portfolio for the learning function in banking organisations. International Journal of Corporate Learning (iJAC), 8, 31-39.
Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G., & Fonstad, N. O. (2020). How big old companies navigate digital transformation. Strategic information management. Routledge.
Shahatha Al‐Mashhadani, A. F., Qureshi, M. I., Hishan, S. S., Md Saad, M. S., Vaicondam, Y., & Khan, N. (2021). Towards the Development of Digital Manufacturing Ecosystems for Sustainable Performance: Learning from the Past Two Decades of Research. Energies, 14(10), 2945. https://doi.org/10.3390/EN14102945
Toring, H., Legaspi, G., Omolon, J., Amadeo, R., Amadeo, E., Opolentisima, Q., … & Cortes, S. (2022). Evaluation of students’ satisfaction toward an adopted learning management system at Indiana Aerospace University: A structural equation modelling approach. Asia Pacific Management Review. https://doi.org/https://doi.org/10.1016/j.apmrv.2022.12.002
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The journal of strategic information systems, 28, 118-144.
Weber, E., Büttgen, M., & Bartsch, S. (2022). How to take employees on the digital transformation journey: An experimental study on complementary leadership behaviors in managing organizational change. Journal of Business Research, 143, 225-238. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.01.036
Xu, S., & Hao, A. (2021). Understanding the impact of national culture on firms’ benefit-seeking behaviors in international B2B relationships: A conceptual model and research propositions. Journal of Business Research, 130, 27-37. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.02.062
Zeng, X., Zhao, Y., & Cheng, Z. (2021). Development and research of rural renewable energy management and ecological management information system under the background of beautiful rural revitalization strategy. Sustainable Computing: Informatics and Systems, 30, 100553. https://doi.org/https://doi.org/10.1016/j.suscom.2021.100553
Published
2023-08-30
How to Cite
Alshammari, K. H., & Alshammari, A. F. (2023). Managing digital transformation in a global environment: The role of national culture. Amazonia Investiga, 12(68), 112-125. https://doi.org/10.34069/AI/2023.68.08.11
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