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In recent years, Industry 4.0 has propelled organizations toward digital transformation (DT) (Solberg et al., 2020). New methodologies and technological disruptions mark this transition, fundamentally altering the work landscape, as Industry 4.0 ushers in a new industrial paradigm (de Paula et al., 2023). Notably, global expenditures on DT surpassed (United States) US$1.59 trillion in 2021, accounting for more than 20% of the total spending in 2020. This surge is attributed to the increased utilization of cloud technologies in remote work. Projections estimate that global spending will soar to US$3.4 trillion by 2026, indicative of the substantial growth in the DT (Statista, 2022).
Research articles confirm an upswing in DT across various organizations (Wade et al., 2020; Westerman, 2022). As the Satell et al. (2021) reported, DT has evolved from merely a preference to an obligation, emerging as a prominent work trend (Weisman et al., 2023). Nevertheless, the adoption of DT varies based on an organization’s revenue and profitability (Andriole, 2017; Magnusson et al., 2022). It is observed that DT profoundly impacts individuals, businesses, and systems (AlNuaimi et al., 2022; Zhao et al., 2023). DT is related to positive outcomes, as it reduces corruption among top management executives (Zhang & Guo, 2022) and helps enhance service quality (Li et al., 2022). To achieve DT, organizations are integrating cutting-edge technologies, such as artificial intelligence (AI), robotics, blockchain, and metaverse, to improve their systems, stimulate innovation, and sustain the competitive advantage (Li et al., 2022; Singh & Hess, 2017). These modifications of fundamental processes are done by utilizing data, communication, computing, and interconnectivity technologies (Vial, 2019).
DT is a strategic shift based on advanced technologies (Bresciani et al., 2021). It involves a comprehensive reorientation of the organization, encompassing the adoption of analytics, robotics, cloud computing, and social media services to deliver outcomes to shareholders, including employees (AlNuaimi et al., 2022; Bresciani et al., 2021). Within this context, DT is defined as “the transformation of business process, culture, and organizational aspects to meet market requirements, owing to digital technologies” (Nasiri et al., 2020). Importantly, DT typically progresses through discovery, development, demonstration, and deployment stages (Philippart, 2022). Studies suggest that DT capability is comprised of three components, namely, digital sensing, seizing, and digital reconfiguring (Teece, 2007; Xiao et al., 2023).
The ongoing technological revolution is reshaping work processes, emphasizing the vital role of human skills in booming DT initiatives (Cimini et al., 2020; Galati & Bigliardi, 2019). To meet this need, employees with strong digital skills must adapt to the rapidly changing work environment (Cagliano et al., 2019). A report underscores the significance of digital upskilling and reskilling, particularly in emerging economies such as India (Statista, 2023). Furthermore, a recent call for study focuses on exploring DT in developing or less developed countries like India to drive their prosperity (Kraus et al., 2022).