Digital Transformation in Organizations and Its Impact on Knowledge Management: A Quantitative Study

Digital Transformation in Organizations and Its Impact on Knowledge Management: A Quantitative Study

Manuel Sousa Pereira, António Cardoso, José Carlos Sá, Miguel Magalhães, Sílvia Faria
DOI: 10.4018/978-1-6684-5538-8.ch001
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Abstract

This study aims to understand the relevance of digital transformation and its impact on organizations in Portugal. In this way, it is intended to evaluate the application of technologies, knowledge management, and incremental innovation in an organizational context. As a methodology, the authors intend to prepare a questionnaire in Google Docs, mainly using the Likert scale, which will be shared through LinkedIn. Having obtained 291 responses that will be analyzed in order to confirm or not the variables under analysis, this academic research intends to understand the explanatory factors of the impact of digital transformation and the contributions to the identification, contextualization, and importance for better knowledge management. The results proved to be relevant for the effective understanding of digital transformation in organizations in Portugal.
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Literature Review

We can characterize digital transformation as the incorporation of technology in line with the organizational strategy, as mentioned by Rego et al. (2021) For Von Leipzig et al. (2017) digital transformation encompasses from technology to the strategy and culture of the organization, which results in new models of strategic management, thus making the analysis of cultural, methodological and technological aspects fundamental in the study of this process. More broadly, technology is also an engine of organizational development, or as Daehn and Costa says. Pereira, (2021) a broader concept that is applied (Krimpmann, 2015; Andriole, 2020; Imran; Shahzad; Butt; Kantola, 2021). Krimpmann (2015, p. 1209) defines it as the “sum of technologies that transform previously physical processes into processes that are partially or fully activated by technology”.

The process of building a digital transformation strategy presupposes a predisposition and incentive to change, seeking to change the attitudes and behaviors of those responsible for the organization. digital transformation strategy, which can simplify the process and reduce obstacles. For this, there must be a person in charge in the company to outline this path of changes, who has previous experience as a facilitator of change and the leadership profile that the position requires (Christian & Thomas, 2015). However, for this to be a reality, it is necessary to provide a culture of change, internally promoting a set of practices, incentives and procedures that enhance this continuous improvement, involving the entire organization seeking success, as we can see in the words of Schwertner (2017). Successful organizations must leverage strategy, culture, and leadership to harness the digital transformation potential of the organization's business.

Key Terms in this Chapter

Knowledge Management: Set of technologies and processes whose objective is to support the creation, transfer and application of knowledge in organizations, in order to make large amounts of organizational information accessible, supporting decision making.

Technology adoption: Represents the degree of incorporation of digital technologies in organizations in order to respond to today's competitive challenges.

Co-Creation: Form of organizational innovation that involves different interlocutors (suppliers, distributors, retailers, customers, employees, and another’s business partners) in order to enhance the collective creative potential, resulting into innovative solutions customized and valued by the market.

Digital Transformation: Process that contemplates the use of digital technologies to solve problems in different domains (economy, education, work, communication, production and communication system, business activity, etc.)

Commitment: Digital transformation represents an organizational change, which can be difficult to achieve if there is no determination and commitment from top management, as well as the involvement of all the structure and functions of the organization, and the participation of all employees. Organizational commitment means developing a corporate culture that promotes innovation and creativity within the company.

Digital Culture: Sets of fundamental skills, competences and knowledge relating to the use of digital technologies by businesses and citizens, as well as by society at large.

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