DECONSTRUCTING DIGITAL TRANSFORMATION: A MULTIDIMENSIONAL ANALYSIS OF DIGITAL LITERACY’S ROLE IN SHAPING HUMAN CAPITAL AND DRIVING ORGANIZATIONAL SUCCESS
DOI:
https://doi.org/10.2478/eoik-2025-0018Keywords:
Digital Transformation, Human Capital, Frugal Innovation, Employee Commitment, Digital Workforce, Knowledge ManagementAbstract
This study presents a comprehensive investigation into the multifac-
eted relationship between digital literacy, human capital development,
and organizational performance in the context of digital transforma-
tion. Through a rigorous mixed-methodology approach combining
quantitative surveys and real-time digital usage tracking, we analyzed
data from 250 employees across 23 organizations spanning multiple
sectors (technology 26.5%, finance 16.7%, healthcare 13.6%). The re-
search employs structural equation modeling and demonstrates robust
interrelationships between variables (correlations ranging r=0.689 to
0.817), with digital literacy and employee commitment exhibiting
the strongest correlation (r=0.817). Statistical analysis reveals that
human capital significantly mediates the relationship between em-
ployee factors and organizational performance, explaining 72.3%
of performance variance (R²=0.723). All constructs demonstrated
strong reliability (Cronbach’s α: 0.739-0.787) and convergent validity
(AVE>0.5). Multiple regression analysis identified attitude (β=0.218)
and human capital (β=0.184) as primary performance predictors, while
frugal innovation showed significant influence (β=0.172, p<0.001).
The study found that 69.1% of participants utilize digital tools multi-
ple times daily, with 44.4% at intermediate digital literacy levels. Path
analysis confirmed significant positive relationships (p<0.001) across
all variables, with attitude demonstrating the highest direct effect on
organizational performance (0.525). The research extends human
capital theory by empirically validating digital competencies’ role
in organizational success and identifies a critical digital literacy di-
vide impacting performance outcomes. In work environments (48.1%
hybrid, 42% on-site, 9.9% remote), findings demonstrate the univer-
sal importance of digital competencies across different operational
models. These results have substantial implications for management
practices, organizational strategy, and human resource development
in the digital era, particularly in fostering comprehensive digital skill
development programs and addressing organizational digital divides.
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