Paving the Way for Digital Transformation in Contemporary Organizations Through Building Strong Organizational Capabilities: Implications for Employee Engagement Toward Change

Digital transformation is a prevailing trend in social and economic growth, offering substantial benefits to individuals and organizations globally. Today, there is a broad consensus that “technology does matter” because technology creates fundamentally new capabilities in organizations and people’s lives and radically improves the organizational performance, operational efficiency, and sustainable development of organizations. However, despite the advantages of digital technologies, research indicates that many organizations encounter difficulties in realizing effective digital transformation because they tend to emphasize technological improvements without developing comprehensive plans and cohesive digital strategies that fully acknowledge the importance of the human element in these transformations. To help the leadership comprehend how cutting-edge technology and business models are interdependent and how this relationship affects the fundamentals of organizational behavior, a model of core foundational organizational capabilities is developed and presented in the following sections. Some preliminary research evidence indicates that, when handled effectively, these capabilities can foster employee engagement and adjustment to technological change. So, this study aims to highlight gaps in the existing literature and raise several important questions that scholars studying digital transformation and the role of employees in the change process need to explore with the goal of helping practitioners manage digital transformation more effectively within their organizations.