Investigation of the Antecedents of Digital Transformation and Their Effects on Operational Performance in the Jordanian Manufacturing Sector

Digitalization is viewed as an important promoter of competitiveness, offering future avenues to new value and revenue opportunities. Nevertheless, the factors that determine the drivers of digital transformation (DT) adoption still need to be explored and understood further. Based on the RBV and institutional theory, this study examines the roles played by organizational culture, IT readiness, and customer demands of firms in the implementation of DT and the consequent improvement of operational performance. The results of a survey carried out among 226 manufacturing companies in Jordan indicate that these antecedent factors have a significant and positive effect on the adoption of DT and operational performance. The results also demonstrate that the implementation of DT enhances the operational performance of firms by increasing their efficiency and effectiveness. This research adds to the existing literature on digital transformation through an examination of the antecedents of its adoption. These findings are useful, as they assist firms in viewing digital transformation as an overarching opportunity that needs to be leveraged to improve their operational performance and competitiveness.