A Multidimensional Model of the New Work Environment in the Digital Age to Increase a Company’s Performance and Competitiveness

Abstract

The purpose of the paper is to develop a multidimensional model of the new work environment in the digital age to increase a company’s performance and competitiveness in VUCA (volatility, uncertainty, complexity, and ambiguity) business environment. The multidimensional model covers the implementation of an agile work environment through the prism of using artificial intelligence technology to increase company’s performance and competitiveness. Researched determined multidimensional aspects for successful implementation of work environment in the digital age are, therefore (1) drivers for shifting towards agility, (2) implementation of agile leadership, (3) implementation of an agile work environment, (4) implementation of AI technology in work environment, (5) company’s performance, (6) competitiveness. The main survey involved randomly selected 473 medium-sized and large companies in Slovenia. Structural equation modelling was used for statistical data analysis. The results show that drivers for shifting towards agility have a positive effect on implementation of agile leadership. Also, results show that implementation of agile leadership and implementation of AI technology in work environment have a positive effect on implementation of an agile work environment. Moreover, results show that implementation of an agile work environment has positive effect on company’s performance and competitiveness. The paper highlights the important multidimensional aspects of the successful implementation of an agile work environment to increase the company’s performance and competitiveness. Also, our results will contribute to the proper implementation of the work environment in the digital age and give owners or top managers a broad insight into the various aspects that must be considered in their business governance in today’s rapidly changing business environment.