Digital Transformation and Organizational Performance: Linking Employee Digital Competence, Customer Experience andFinancial Outcomes
DOI:
https://doi.org/10.66635/2zctv186Keywords:
digital transformation, employee digital competence, customer experience, financial outcomes, PLS-SEMAbstract
Digital transformation creates organizational value only when technological resources are translated into employee capabilities, superior customer interactions, and ultimately stronger economic outcomes. This study develops and tests a three-construct model linking Employee Digital Competence (EDC), Customer Experience (CE), and Financial Outcomes (FO). PLS-SEM was applied to 200 complete survey cases using IIISR SEM v2.0.7. The reflective measurement model demonstrated satisfactory reliability, convergent validity, and discriminant validity. EDC positively influenced CE (beta = 0.545, p < .001), while CE positively influenced FO (beta = 0.545, p < .001). The indirect effect of EDC on FO through CE was significant (0.297, p < .001), supporting the proposed mediating mechanism. The model explained approximately 30% of the variance in both CE and FO and demonstrated positive predictive relevance. The findings position customer experience as an important market-facing pathway through which employee digital competence can be converted into financial value.
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