The Effect of Digital Transformation on Employee Performance with Readiness for Change as a Moderating Variable at The Public Works and Spatial Planning Office of Central Kalimantan Province
DOI:
https://doi.org/10.59188/jurnalsosains.v6i11.32813Keywords:
Digital Transformation, Readiness for Change, Employee Performance, PLS-SEM, Public SectorAbstract
Digital transformation has become an increasingly important requirement for public-sector organizations; however, previous studies have reported inconsistent findings regarding its effects on employee performance. This study aimed to examine the effect of digital transformation on employee performance and investigate the moderating role of employees' readiness for change at the Public Works and Spatial Planning Office (DPUPR) of Central Kalimantan Province, Indonesia. An explanatory quantitative research design was employed. Data were collected using a five-point Likert-scale questionnaire administered to 164 respondents from a target sample of 167 employees, selected through purposive sampling from a population of 288 employees. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The measurement model satisfied the established criteria for convergent validity, discriminant validity, and reliability. The results indicated that digital transformation had a positive and statistically significant effect on employee performance (β = 0.251; t = 3.271; p = 0.001). Furthermore, readiness for change significantly and positively moderated the relationship between digital transformation and employee performance (β = 0.177; t = 2.728; p = 0.006), indicating that greater readiness for change strengthened this association. The structural model explained 59.5% of the variance in employee performance (R² = 0.595) and demonstrated substantial predictive relevance (Q² = 0.572). These findings suggest that improving employee performance through digital transformation requires not only technological development and enhanced digital competencies but also organizational initiatives that strengthen employees' readiness to embrace change. Therefore, public-sector organizations should integrate digital capability development with change management strategies to maximize the potential benefits of digital transformation for employee performance.
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