The Impact of Digital Transformation on the Organization’s Response to the COVID-19 Challenge
COVID-19 is, first and foremost, a health and humanitarian crisis; moreover, it has had a detrimental effect on the performance of businesses worldwide. However, digitalization may be seen as a solution to this crisis for some companies. This process of using digital technologies to adapt to new market requirements is known as digital transformation. This process is normally taking years, but currently, some sources report years' worth of digital transformation in the space of just a few months. However, some firms digitized and automated many of their processes and some only the minimum required to continue to function during the pandemic, which is indicative of their degree of digital transformation. This study attempts to illustrate how the degree of digital transformation affected the impact of COVID-19 on firm performance. To do this, we collected data via survey. This data was then analyzed using factor analysis techniques and structural equation modeling. The results suggest that the degree of digital transformation facilitated the digital transition during the pandemic but did not show any signs of alleviating the negative impact of the COVID-19 pandemic on firm performance.
Keywords:Impact of Covid-19, Digital Transformation, Firm Performance
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