Exploring the Drivers of Digital Transformation and their Impacts on Adoption

Abstract

Digital transformation in industries is essential for industries in order to remain competitive in global world and to achieve sustainable performance. Hence, in order to pursue the driving forces for digital transformation in Pakistan, the present study is being conducted in Textile sector of Pakistan. The drivers of digital transformation are classified in economic, environmental, social, and organizational dimensions. The study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) and a sample size of 124 industrial stakeholders was obtained, and hence the research provides a comprehensive analysis of the influence these drivers have on the adoption o digital technologies in industries. The findings revealed that economic, environmental, and organizational drivers significantly impact digital transformation in the textile sector, and hence it highlights the critical role of financial resources, sustainability initiatives and organizational capabilities within the industry. However, social drivers did not show a significant impact on digital adoption. Additionally, it was concluded that large firms are better at leveraging resources for digital transformation compared to smaller ones. Therefore, conclusion from the study contribute to an understanding of the digital transformation process in developing countries and it offers a practical implications for industry stakeholders and policymakers who are aiming to pave the way for technological advancements within the textile industry of Pakistan.