Impact of Digitalization on Employee Performance of Rajasthan State Road Transport Corporation

Abstract: This study examines the complex relationships between technology adoption and employee performance in the digital transformation context, specifically investigating the mediating roles of digital skills and work efficiency. Using a quantitative cross-sectional design, data were collected from employees at SRTU through validated measurement instruments and analyzed using Structural Equation Modeling (SEM). The research tested a comprehensive model examining both direct and indirect pathways through which digitalization impacts employee performance outcomes. Results demonstrate excellent model fit indices (χ²/df = 2.24, RMSEA = 0.052, CFI = 0.958, TLI = 0.952, SRMR = 0.038), confirming the theoretical framework's validity. The findings reveal significant direct effects of technology adoption (β = 0.385, p < 0.001), digital skills (β = 0.412, p < 0.001), and work efficiency (β = 0.328, p < 0.001) on employee performance. Mediation analysis confirms that both digital skills (indirect effect = 0.185, 95% CI: 0.124-0.246) and work efficiency (indirect effect = 0.142, 95% CI: 0.088-0.196) significantly mediate the technology adoption-performance relationship, with digital skills demonstrating the stronger mediating pathway. The integrated model explains 64.5% of the variance in employee performance, highlighting the substantial impact of digitalization initiatives. All measurement constructs exhibited strong reliability (CR > 0.86) and validity (AVE > 0.64), ensuring robust analytical foundations. These findings provide crucial insights for organizations implementing digital transformation strategies, emphasizing that technology adoption influences performance through multiple pathways and that comprehensive approaches addressing both skill development and operational efficiency are essential for maximizing digitalization benefits. The study contributes to the growing literature on digital transformation by empirically validating the mediating mechanisms through which technology adoption enhances employee performance, offering evidence-based guidance for practitioners and researchers in the field of organizational digitalization. Keywords: Digital Transformation, Employee Performance, Structural Equation Modeling, Technology Adoption, Mediation Analysis