The Impact of Digital Transformation on Organisational Structure

Abstract

Digital transformation has significantly changed organisations' operational functions and processes, further impacted organisational structures and improved operational efficiencies. However, many expected benefits are not yet fully embraced by employees, some even feel resistant. Therefore, this research examined New Zealand employees' perceptions of the impact of digital transformation on the structuring processes of their organisations and makes recommendations for effective transformation. A post-positivism research paradigm was adopted to guide the design of mixed methods approach to this research, which included a survey and semi-structured interviews. The targeted participants were employees working or having worked in at least one New Zealand organisation where they experienced digital transformation. Purposive and snowball sampling methods were used to recruit 65 survey participants, with follow-up interviews undertaken from agreeing participants. The participants were moderately satisfied with the improved productivity, product and service quality, and positive financial outcomes that digital transformation brought to them and their organisations. The comparison between the findings from the two data sets suggests that resources including technology, talent and equipment were the most critical factors for effective digital transformation DT. This research recommends that New Zealand organisations should focus on a six-factor model to achieve the drivers, goals, and benefits of digital transformation.