The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation

Digital transformation (DT) has attracted the attention of management and organizational scholars in the past decade. In addition, firms are increasingly interested in using DT to obtain a competitive advantage. Nevertheless, studies on DT outcomes remain scarce. Therefore, this study empirically in...

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Main Authors: Rawan Masoud, Sarah Basahel
Format: Article
Language:English
Published: MDPI AG 2023-04-01
Series:Digital
Subjects:
Online Access:https://www.mdpi.com/2673-6470/3/2/8
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author Rawan Masoud
Sarah Basahel
author_facet Rawan Masoud
Sarah Basahel
author_sort Rawan Masoud
collection DOAJ
description Digital transformation (DT) has attracted the attention of management and organizational scholars in the past decade. In addition, firms are increasingly interested in using DT to obtain a competitive advantage. Nevertheless, studies on DT outcomes remain scarce. Therefore, this study empirically investigated the effect of digital transformation on firm performance by classifying the capabilities required to realize digital transformation, customer experience, and IT innovation. A structured questionnaire was used to collect data from 164 representatives of service sector firms in Saudi Arabia, namely chief information officers, chief transformation officers, and IT managers. Based on the findings of this study, it is evident that digital transformation, customer experience, and IT innovation positively impact a firm’s performance, with customer experience exhibiting the strongest effect.
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spelling doaj.art-0d8abf302d424aab826054521575f0e92023-11-18T10:01:33ZengMDPI AGDigital2673-64702023-04-013210912610.3390/digital3020008The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT InnovationRawan Masoud0Sarah Basahel1Department of Business Administration, King Abdulaziz University, Jeddah 21589, Saudi ArabiaDepartment of Management Information Systems, King Abdulaziz University, Jeddah 21589, Saudi ArabiaDigital transformation (DT) has attracted the attention of management and organizational scholars in the past decade. In addition, firms are increasingly interested in using DT to obtain a competitive advantage. Nevertheless, studies on DT outcomes remain scarce. Therefore, this study empirically investigated the effect of digital transformation on firm performance by classifying the capabilities required to realize digital transformation, customer experience, and IT innovation. A structured questionnaire was used to collect data from 164 representatives of service sector firms in Saudi Arabia, namely chief information officers, chief transformation officers, and IT managers. Based on the findings of this study, it is evident that digital transformation, customer experience, and IT innovation positively impact a firm’s performance, with customer experience exhibiting the strongest effect.https://www.mdpi.com/2673-6470/3/2/8digital transformationcustomer experienceIT innovationfirm performance
spellingShingle Rawan Masoud
Sarah Basahel
The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
Digital
digital transformation
customer experience
IT innovation
firm performance
title The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
title_full The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
title_fullStr The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
title_full_unstemmed The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
title_short The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation
title_sort effects of digital transformation on firm performance the role of customer experience and it innovation
topic digital transformation
customer experience
IT innovation
firm performance
url https://www.mdpi.com/2673-6470/3/2/8
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