The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation

Abstract

Energy sector companies operate in a complex environment characterized by restrictive regulations, increasing competition, geopolitical influences and changing stakeholder expectations. To be able to respond dynamically to these changes, ensuring open, automated communication and real-time operation of the energy system, managers need to transform companies digitally. While the digital transformation of energy companies is inevitable, limited access to specific resources can slow down or, in extreme cases, prevent the process of digitalization. Based on studies that combine the resource-based view and the digital transformation concept this paper aims to explain how human, technological, financial, ICT and infrastructure resources impact digital transformation of the energy company sector. Using structural equation modeling to analyze data collected from 110 energy companies, the study provides evidence of the links between organizational resources and digital transformation. This research contributes to a better understanding of the importance of soft aspects of management during digital change, that is digital transformation readiness, which plays a mediating role between organizational resources and digital transformation. In addition, the results reveal the influence of technological and financial resources on readiness for digital transformation, and suggest that there is no statistically significant relationship between ICT and infrastructure resources and digital transformation readiness. The role of digital transformation readiness recognized in the study has specific practical implications, as it suggests to management practitioners that a perspective on soft aspects, including organizational culture and governance, can accelerate and enhance digital transformation.