THE DEVELOPMENT OF DIGITAL TRANSFORMATION MODEL IN GOVERNMENT ORGANIZATIONS FROM CROSS-GENERATION PERSPECTIVE

• Main Author: Angga Widoto, Laksana
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68761
• Institution: Institut Teknologi Bandung

Currently, digital transformation is being pursued aggressively by both private and public sector organizations. However, the characteristics of government organizations that are bureaucratic, hierarchical, located in a non-competitive environment, and are not profit-oriented cause the implementation of digital transformation to be slower than that of private organizations. On the other hand, the current phenomenon of the workplace demonstrates the involvement of employees across generations. Each generation has distinct characteristics, and how each generation perceives digital change will influence the successful implementation of digital transformation. The findings of the literature review show that research on digital transformation in government organizations, particularly from a cross-generational perspective, is still scarce. According to the field study, the implementation of digital transformation is still not optimal, and it is suspected that there are influences from employee reactions to change, organizational culture, organizational readiness, and generational differences. As a result, the primary goal of this study is to develop and empirically test a conceptual model that includes these four factors, which will then be analyzed from a cross-generational perspective. The developed model is a hierarchical component model composed of two reflective-reflective constructs and two formative-reflective constructs. Individual reactions to change, digital culture, organizational readiness, and digital transformation are higher-order constructs (HOC). These four latent variables are defined as multidimensional constructs, and the dimensions corresponding to each HOC defined as lower-order constructs (LOC). A quantitative approach is used in this study, with MANOVA and PLS-SEM techniques. Purposive sampling was used to collect data. Employees from Gen X and Gen Y with more than one year of experience made up the research respondents. iv The findings revealed that Gen Y had more positive affective reactions than Gen X, but there was no difference in cognitive or behavioral reactions. Furthermore, individual reactions to change, digital culture, and organizational readiness are determinants of digital transformation success, with digital culture being the strongest predictor. According to multigroup analysis, there is no difference between Gen X and Gen Y in terms of the antecedents that influence digital transformation. The theoretical implication of this study is that the research findings support the theory that structural readiness and psychological readiness are precursors to organizational change success, and structural readiness (digital culture) will determine the judgement of perceived collective commitment and collective efficacy to change (psychological readiness). The managerial implication of this study is that PPSDK can involve Gen X and Gen Y in the change management team, one of which is to ensure the internalization of adaptive, flexible, and collaborative cultural values within the organization. Implementing Office Automation is one of the concrete steps proposed.