Employee Participation in Digital Transformation: From Digitalization Sentiment to Transformation Predisposition

Abstract

Digital transformation extends beyond mere technological shifts in business routines, models, or domains; it encompasses the profound evolution of employees’ attitudes and behaviors. Prior research on the microfoundations of digital transformation emphasizes that the essence of transformation lies in the individuals who drive it forward. To truly unlock this potential, organizations must harmonize sweeping changes with the individual needs and professional aspirations of their workforce. Achieving this balance is crucial to mitigating resistance and ensuring successful transformation. This study offers an empirical examination of how these dynamics unfold in practice. It begins by theorizing that employee sentiment toward digitalization is a key predictor of their predispositions toward digital transformation. The findings demonstrate that positive predispositions, in turn, can significantly enhance employees’ willingness to participate in digital transformation initiatives. This study sheds light on the individual microfoundations that underpin employee participation in digital transformation, revealing that these drivers are rooted in fundamental psychological needs, transcending geographical and cultural boundaries. The findings advocate for investments in employees’ psychosocial readiness and suggest viewing digitalization projects as strategic opportunities to cultivate positive experiences and attitudes, paving the way for future transformation initiatives.