The digital bridge: how digital transformation mediates the innovative culture-resilience nexus in IT firms

Purpose This study aims to identify the impact of innovative culture on organizational resilience in the Sri Lankan information technology (IT) sector, with a specific focus on the mediation role of digital transformation. Design/methodology/approach Using a quantitative approach, data were collected from over 274 participants who were managerial or above-level employees in the IT industry via surveys. Partial least squares structural equation modeling was used to analyze the data and test the hypothesized relationships between variables. Findings The findings of this study revealed that innovative culture has a significant positive impact on the adoption of digital transformation, as the innovative mindset that is ingrained encourages continuous growth, creativity and risk-taking, thereby strengthening digital transformation initiatives. Both innovative culture and digital transformation have a significant positive impact on organizational resilience. Digital transformation significantly mediates the effect of innovative culture on organizational resilience. Practical implications The findings offer valuable guidance to industry leaders and policymakers for the strategic utilization of technology and the design of appropriate business models. Originality/value This study emphasizes the importance of developing innovative culture and digital transformation in the IT industry to ensure sustainable business processes.