The digital bridge: how digital transformation mediates the innovative culture-resilience nexus in IT firms

Abstract

Purpose – This study aims to identify the impact of innovative culture on organizational resilience in the Sri Lankan information technology (IT) sector, with a specific focus on the mediation role of digital transformation. Design/methodology/approach – Using a quantitative approach, data were collected from over 274 participants who were managerial or above-level employees in the IT industry via surveys. Partial least squares structural equation modeling was used to analyze the data and test the hypothesized relationships between variables. Findings – The findings of this study revealed that innovative culture has a significant positive impact on the adoption of digital transformation, as the innovative mindset that is ingrained encourages continuous growth, creativity and risk-taking, thereby strengthening digital transformation initiatives. Both innovative culture and digital transformation have a significant positive impact on organizational resilience. Digital transformation significantly mediates the effect of innovative culture on organizational resilience. Practical implications – The findings offer valuable guidance to industry leaders and policymakers for the strategic utilization of technology and the design of appropriate business models. Originality/value – This study emphasizes the importance of developing innovative culture and digital transformation in the IT industry to ensure sustainable business processes.