Navigating the manufacturing revolution: identifying the digital transformation antecedents

Abstract

Purpose

In the era of digitalization, digital technology has transformed businesses and created enormous opportunities for organizations worldwide. Unsurprisingly, research on digital transformation has garnered significant interest among academics in recent decades. However, this study aims to recognize the key and holistic antecedents influencing digital transformation in manufacturing firms. This study also investigates the indirect relationships of antecedents with firm performance.

Design/methodology/approach

The hypothesis was investigated using the partial least squares structural equation modeling (PLS-SEM) approach. The data was collected from 279 employees through a self-administered survey of manufacturing firms.

Findings

The results described a significant and positive impact of competitive pressure, leadership role, organization culture, organization mindfulness, government regulation, and IT readiness on digital transformation and firm performance. Furthermore, digital transformation partially mediates the relationship between antecedents and firm performance.

Originality/value

The study finds a holistic perspective of the critical antecedents of digital transformation using the mediation role of digital transformation and moderating effects of firm agility. Additionally, all antecedents have a significant association with Firm Performance.

Citation

Bilal, M., Xicang, Z., Jiying, W., Sohu, J.M. and Akhta, S. (2024), "Navigating the manufacturing revolution: identifying the digital transformation antecedents", Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-09-2023-1722