DIGITAL TRANSFORMATION AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF ORGANIZATIONAL AGILITY AND MODERATING EFFECT OF ENVIRONMENTAL TURBULENCE
DOI:
https://doi.org/10.63456/aamc-2-2-128Keywords:
Transformation, Sustaining, Environmental, Modeling, Cronbach's alphaAbstract
Digital transformation has become a strategic imperative for organizations seeking to improve performance and sustain competitiveness amid increasingly turbulent business environments. This study examines the effect of digital transformation on organisational performance, focusing on the mediating role of organisational agility and the moderating effect of environmental turbulence. A sequential explanatory mixed-methods design was adopted, combining a quantitative survey with qualitative interviews. Quantitative data were obtained from 452 valid responses across 65 medium-sized and large organizations in information technology, financial services, manufacturing, telecommunications, and healthcare. Data were analyzed using descriptive statistics, measurement-model assessment, reliability and validity testing, Structural Equation Modelling (SEM), mediation analysis, and moderation analysis. Qualitative data were obtained through semi-structured interviews with 25 purposively selected participants and analyzed thematically. The results show that digital transformation significantly enhances organisational agility (β = 0.686, p < 0.001; R² = 0.47), while organisational agility significantly improves organisational performance (β = 0.553, p < 0.001). Organisational agility significantly mediates the relationship between digital transformation and organisational performance (indirect effect = 0.380, p < 0.001), while environmental turbulence significantly moderates the relationship between digital transformation and organisational agility (β = 0.217, p = 0.001). The study contributes an integrated framework demonstrating how organisational agility serves as a mechanism through which digital transformation generates performance benefits and how environmental conditions shape this relationship.
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Copyright (c) 2026 Atinuola Elizabeth Ayeoribe, Olarewaju Peter Ayeoribe (Author)
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