Developing dynamic capabilities for successful digital transformation projects: the mediating role of change management

Abstract

Abstract Digital transformation is a growth strategy that has attracted a significant amount investment and is projected to boost the global economy by 2030. However, organizations face challenges in their efforts to develop effective approaches to digital transformation because of the constant need for new strategic choices. Dynamic capabilities and change management are vital with respect to organizations’ ability to maintain competitiveness in the changing environment established by digital technologies. The effective management of these changes is crucial, and failure is often the result of the absence of a suitable change management model. This study examines the significance of dynamic capabilities in digital transformation and explores the mediating role of a well-defined approach to change management in the context of digital projects. A quantitative research approach is used to investigate a population of 902 managers and team leaders working in the telecommunications sector in Yemen. A questionnaire is developed and administered to a sample of 350 participants, and the data collected were analyzed via SmartPLS. The findings reveal a positive relationship between dynamic capabilities and the successful implementation of digital transformation initiatives. Effective change management techniques facilitate digital transformation by playing a mediating role in the abovementioned relationship. The results of this research provide valuable insights into the theoretical framework underlying this topic by integrating dynamic capabilities, change management, and digital transformation. This information can help decision-makers in the telecommunications sector develop a roadmap for successful digital transformation projects in their organizations.

Keywords

• Digital transformation
• Dynamic capabilities
• Change management
• Telecom
• Yemen