Digitalization and Organizational Performance in Sweden: The Moderating Role of Technological Literacy : A study about the impact of digitalization on organizational performance in Sweden, moderating the role of technological literacy.

This thesis explores the impact of digitalization on organizational performance in Sweden, with a particular emphasis on the moderating role of technological literacy. Using contingency theory as the theoretical framework, this thesis explores the importance of aligning internal capabilities with the external environments to maximize digitalization initiatives. Organizational performance is measured through two key dimensions, financial and managerial performance, as well as a combined performance index that represents overall organizational performance. Based on survey data collected from 100 respondents, primarily from Sweden, the findings indicate a significant positive relationship between digitalization and both financial and managerial performance, as well as the combined overall performance index. The strongest effect is identified for financial outcomes. However, the hypothesized moderation effect of technological literacy was not statistically significant. Two possible reasons are proposed: (1) Sweden’s high baseline level of technological literacy may lead to a saturation effect, and (2) the increasing accessibility and user-friendliness of digital tools reduce the need for high technological literacy levels to use them effectively. Methodologically, this thesis contributes to the literature by effectively applying moderation analysis and constructing a multi-dimensional performance metric. While the cross-sectional design and relatively small sample size present some limitations, the study still provides valuable insight into how digitalization affects organizational performance in digitally mature environments.