Study of Factors Influencing Digital Transformation Process in Bangkok

Abstract

Most digital transformations fail. Various studies from academics, consultants, and analysts indicate that the rate of digital transformations failing to meet their original objectives ranges from 70% to 95%, with an average at 87.5%. Yet, digital transformation has been at the top of corporate agendas for at least a decade and shows no sign of slowing down. On the contrary, many commentators have highlighted the accelerating impact of the Covid-19 period on digital transformation. Digital transformation is something no management team should attempt alone. It takes deep into reality and a sense of ownership among people across the enterprise to make transformation a reality.

The purpose of this research is to study factors influencing digital transformation process in Bangkok, Thailand. These factors include seven first-order independent variables: Leadership (LD), Employee (EP), Culture (CT), Work Environment (WE), Mindset (MS), Organizational Friction (OF), Management of Transformation (MT), and Talent Acquisition (TA); three second-order variables: Leadership & Motivation (LDM), People (PPL), and Workplace Culture (WPC) and one dependent variable: Digital Transformation (DT). 400 sample were collected using electronic questionnaire through social media. We used Structural Equation Models (SEM) for data analysis. The result shows that since the RMSEA, which is an absolute fit index that assesses how far our hypothesized model is from a perfect model, for this model is .04 (<.05) which strongly indicates a “close fit” and the Goodness of Fit Index (GFI) value is .902 (>.90), the model seems to fit well according to the descriptive measures of fit. Moreover, CFI, which is incremental fit indices that compare the fit of our hypothesized model with that of a baseline model (i.e., a model with the worst fit), its value equals .903 indicating an acceptable fit.

More importantly, Talent Acquisition (TA), Leadership & Motivation (LDM), and Workplace Culture (WPC) seem to have significant effects on Digital Transformation (DT) process due to their p-values are all less than .05. That means if corporates focus more on acquiring new talent and at the same time improve corporate leadership and motivation and workplace culture, they will be more likely to be successful in digital transformation which is necessary condition for all organizations to be competitively sustainable going forward.