IDEAS home Printed from https://ideas.repec.org/a/vrs/econom/v13y2025i1p405-430n1017.html
   My bibliography  Save this article

Deconstructing Digital Transformation: A Multidimensional Analysis of Digital Literacy’s Role in Shaping Human Capital and Driving Organizational Success

Author

Listed:
  • Meena G

    (Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu District, Tamil Nadu, India)

  • Santhanalakshmi K.

    (Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu District, Tamil Nadu, India)

Abstract

This study presents a comprehensive investigation into the multifaceted relationship between digital literacy, human capital development, and organizational performance in the context of digital transformation. Through a rigorous mixed-methodology approach combining quantitative surveys and real-time digital usage tracking, we analyzed data from 250 employees across 23 organizations spanning multiple sectors (technology 26.5%, finance 16.7%, healthcare 13.6%). The research employs structural equation modeling and demonstrates robust interrelationships between variables (correlations ranging r=0.689 to 0.817), with digital literacy and employee commitment exhibiting the strongest correlation (r=0.817). Statistical analysis reveals that human capital significantly mediates the relationship between employee factors and organizational performance, explaining 72.3% of performance variance (R²=0.723). All constructs demonstrated strong reliability (Cronbach’s α: 0.739-0.787) and convergent validity (AVE>0.5). Multiple regression analysis identified attitude (β=0.218) and human capital (β=0.184) as primary performance predictors, while frugal innovation showed significant influence (β=0.172, p

Suggested Citation

  • Meena G & Santhanalakshmi K., 2025. "Deconstructing Digital Transformation: A Multidimensional Analysis of Digital Literacy’s Role in Shaping Human Capital and Driving Organizational Success," Economics, Sciendo, vol. 13(1), pages 405-430.
    • Handle: RePEc:vrs:econom:v:13:y:2025:i:1:p:405-430:n:1017
    DOI: 10.2478/eoik-2025-0018
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eoik-2025-0018
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eoik-2025-0018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Digital Transformation; Human Capital; Frugal Innovation; Employee Commitment; Digital Workforce; Knowledge Management;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:econom:v:13:y:2025:i:1:p:405-430:n:1017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.