Original Research

Internal organisational factors enabling digitalisation in South Africa: Evidence from organisations in diverse sectors

Munodani Chapano, Amanda Werner

Received: 02 Dec. 2025; Accepted: 02 Mar. 2026; Published: 10 Apr. 2026

Copyright: © 2026. The Authors. Licensee: AOSIS.
This work is licensed under the Creative Commons Attribution 4.0 International (CC BY 4.0) license (https://creativecommons.org/licenses/by/4.0/).

Abstract

Background: Digitalisation has become a priority for organisations in their quest to improve service delivery and efficiency, and to increase their market share. To achieve this, organisations need to assess their strength in handling digitalisation demands by giving attention to internal organisational factors that serve as foundational to enabling successful digitalisation.

Objectives: This study empirically investigates internal organisational factors, specifically organisational capability (OrgCap), organisational structure (OrgStru), human resource transformation (HRTrans) and change management (ChanMag), as enablers of digitalisation in South African organisations.

Method: A quantitative study approach was used to collect data from 111 HR professionals, operational managers, and employees within finance, manufacturing, and retail organisations listed on the Johannesburg Stock Exchange in South Africa, using a survey with a questionnaire and a combination of purposeful, convenience and snowball sampling techniques. Statistical Package for Social Sciences, version 31 (IBM SPSS Statistics for Windows [Version 31.0], IBM Corp., Armonk, NY, United States), was used to process and analyse data using descriptive analysis, Pearson Product-Moment correlations and One-Sample t-tests.

Results: The findings revealed that OrgCap, OrgStru, ChanMag and HRTrans significantly foster digitalisation in organisations. Collectively, these factors comprise an integrated internal digital ecosystem that enables digitalisation.

Conclusion: Critical internal organisational factors need to be considered in the planning and implementation of digitalisation within organisations.

Contribution: Scientific knowledge is advanced by underlining the critical role played by internal organisational factors in the successful digitalisation within South African organisations. The study presents organisational change leaders with actionable insights into factors supporting organisational digitalisation.

Keywords: organisational capability; organisational structure; human resource (HR) transformation; change management; digitalisation; South African organisations.

Introduction

Digital technologies are adopted by businesses to produce and deliver goods and services, and to connect stakeholders, with this trend growing tremendously across the world (Peng & Jia 2024). The Fourth Industrial Revolution (4IR) and the associated invention of technologies keep organisations on high alert and prompt them to continuously implement new technologies (Nesindande, Saurombe & Joseph 2024).

Digitalisation in the workplace could generate positive outcomes for both employees and organisations. Positive outcomes for employees include flexibility, work-life balance, well-being, a satisfying work experience and job satisfaction (Thite 2019), while positive outcomes for organisations include enhanced business performance, cost savings, efficiency, innovation and the retention of talented employees (Thite 2019). In addition to these benefits, many businesses and employees feel compelled to embrace digitalisation despite its challenges, in a quest to be competitive and avoid being left behind in a fast-paced digital era.

While some organisations successfully navigate the new technological landscape, most are still grappling with how to successfully implement digitalisation (Lukito, Suharnomo & Perdhana 2022; Zhang et al. 2024). One of the reasons for the slow adoption is a lack of readiness due to internal organisational arrangements that perpetuate resistance to change (Machado et al. 2021). These internal organisational arrangements are pointing largely to organisational capability (OrgCap), organisational structure (OrgStru), the digital transformation of human resource (HR) and change management (ChanMag) (De la Porte & Higgs 2019; Gaorekwe & Bwalya 2024; Hadzic 2024; Kayser, Telukdarie & Philbin 2023; Mateko, Dowelani & Sinamano 2025; Mhlungu, Chen & Alkema 2019). This lack of readiness or lack of agility is a barrier for organisations in successfully digitalising and enjoying the full benefits of digital technologies (Machado et al. 2021).

Organisational agility is recognised as a precondition for an organisation to successfully digitalise and thrive in the digital age (Gong & Ribiere 2023; Zhang, Ding & Xiao 2023). Organisational agility reflects the ability of an organisation to quickly reconfigure itself and innovatively adapt to change. For organisations to successfully respond to both internal and external change pressures, including the pressure to implement digital technologies, they need to have a solid internal foundation (Dörr et al. 2023; Heredia et al. 2022; Machado et al. 2021; Zhang et al. 2023). Currently, there is limited empirical research that explores internal organisational factors that foster digitalisation (Gong & Ribiere 2023; Heredia et al. 2022; Machado et al. 2021; Oyetade, Zuva & Harmse 2024; Zhang et al. 2023). Most literature focuses on digitalisation as a means of improving organisational capabilities and performance, rather than considering organisational factors promoting digitalisation (Llopis-Albert, Rubio & Valero 2021; Polevaya & Shustova 2023). Too often, organisational internal factors are investigated as being impacted by digitalisation rather than these factors supporting digitalisation (Sabljic 2024), leaving a gap in research that this study seeks to bridge.

It is posited that an agile organisation with a solid internal foundation is better positioned to proactively identify emerging business opportunities and institute appropriate steps for the benefit of the organisation (Gong & Ribiere 2023). Such organisations can quickly and effectively reconfigure their existing resources for the uptake of technology (Gong & Ribiere 2023; Machado et al. 2021). As a point of departure, organisations should evaluate their internal capacity in support of the adoption of digital technologies.

Organisational capability, OrgStru, HRTrans and ChanMag are presented as internal factors that can either successfully support or impede digitalisation, depending on the way they are managed within the organisation (Bhatta & Thite 2019; Dörr et al. 2023; Guo et al. 2025; Lukito et al. 2022; Motamedimoghadam, Mira da Silva & Amaral 2024; Sabljic 2024; Shahzad, Imran & Butt 2025; Van Tonder et al. 2023). For example, to successfully digitalise, HR practitioners should become more agile and incorporate agile HR practices in all HR functions, from recruitment to incentivising outstanding performance (Bhatta & Thite 2019; Guo et al. 2025). Digitalisation is fostered if an organisation has the necessary capability (systems, resources, procedures and measures) (Guo et al. 2025; Motamedimoghadam et al. 2024), as well as adopts appropriate ChanMag practices, including a proper communication strategy, addressing employees’ fear of digitalisation and increasing motivation for change (Kakungulu 2024). Also, digitalisation is believed to be more successfully adopted when the structure of the organisation is flexible, decentralised, and allows members from across the organisation’s diverse departments to continuously communicate, interact and support each other in their quest to adopt best digitalisation practices (Guo et al. 2025; Sabljic 2024; Shahzad et al. 2025). However, in most studies, OrgStru is studied as an outcome of digitalisation rather than an enabler of digitalisation (Sabljic 2024).

Research investigating factors that enable the implementation of digitalisation within the workplace is scanty and anecdotal (Sabljic 2024), and especially within a South African work context (Chapano, Mey & Werner 2022; Eurofound 2021; Gaorekwe & Bwalya 2024; Kayser et al. 2023; Matsepe & Van der Lingen 2022; Mhlungu et al. 2019). In fact, it is recognised that the pace of digitalisation in South Africa is low (Nhede, Mazenda & Masiya 2022). Previous studies conducted in South Africa emphasised a need to better understand preconditions for successful participation in digitalisation, with these conditions reflective of OrgCap, OrgStru, the digital transformation of HR and ChanMag (De la Porte & Higgs 2019; Gaorekwe & Bwalya 2024; Hadzic 2024; Kayser et al. 2023; Mateko et al. 2025; Mhlungu et al. 2019).

The aim of this study, therefore, is to close this gap by empirically investigating the extent to which the identified internal organisational factors facilitate digitalisation in selected South African sectors, these being manufacturing, retail and finance. For instance, a lack of research on factors influencing digitalisation within the financial sector, and specifically within insurance companies, is observed (Gama, Phahlane & Malungana 2025). Digitalisation is also perceived to be lagging within manufacturing organisations in South Africa (Radebe 2024), while retail organisations are considered destined for success if they become more agile because of digitalisation (Bureau of Market Research [BMR] 2025). Given this background, this study contributes by highlighting factors that either enable or limit digitalisation, specifically within the selected sectors.

Research objectives

The objectives of the study were to:

• Review existing literature on OrgCap, OrgStru, HRTrans and ChanMag, in terms of their role in enabling digitalisation within organisations.
• Empirically determine the extent to which OrgCap, OrgStru, HRTrans and ChanMag are seen to support digitalisation in the selected South African organisations.
• Empirically assess interrelationships between OrgCap, OrgStru, HRTrans and ChanMag in terms of their perceived role in supporting digitalisation in the selected South African organisations.

Literature review

The literature review explores OrgCap, OrgStru, ChanMag and HRTrans in terms of their perceived role in enabling digitalisation. These are internal organisational factors that are seen to contribute to the success of digitalisation (Bhatta & Thite 2019; Dörr et al. 2023; Guo et al. 2025; Lukito et al. 2022; Motamedimoghadam et al. 2024; Shahzad et al. 2025). Digitalisation is defined as the implementation of digital technologies to optimise business practices and transform the management of organisational processes for purposes of competitiveness (Chapano et al. 2022). Cloud computing, robotics, blockchain, Artificial Intelligence (AI), virtual reality and the Internet of Things, among others, are prominent digital technologies that are revolutionising organisational processes (Chapano et al. 2022). Internal organisational factors lay the groundwork for embarking on the digitalisation process, and they become catalysts for additional enablers that may come to the fore in the digitisation journey. Digitalisation should be considered business-centric rather than technology-centric, as digitalisation is perceived to bring fundamental change, adaptation and improvements to the whole organisation (Machado et al. 2021). Thus, prioritising internal systems is deemed necessary for the successful implementation of digital technologies within organisations.

Theoretical framework

The dynamic capabilities framework (DCF) presents a theoretical lens for exploring internal organisational factors affecting digitalisation. Dynamic capabilities represent a selection of factors with high impact that, if strengthened, give an organisation the necessary impetus to achieve its goals. Manipulating and strengthening these factors enables organisations to respond with agility to the turbulent business environment and achieve competitive advantage (Teece, Pisano & Shuen 1997). The principles underlying organisational dynamism are sensing, seizing and reconfiguring (Teece et al. 1997). Sensing entails the ability of the organisation to predict, learn and understand the opportunities and threats occurring in the business environment. Seizing is the ability of the organisation, through its competencies, systems and resources, to exploit the opportunities and overcome the threats, while reconfiguring is the ability to maintain competitiveness through strategic alignment, which may include the realignment of resources, processes and systems (Teece et al. 1997).

The DCF is relevant to this study as it emphasises that organisations should be cognisant of the internal systems of the organisation that lay a strong foundation for pursuing a digitalisation agenda in a rapidly changing technological environment. In this context, dynamic capabilities enable organisations to swiftly adapt to technological advancements and change by aligning their strategic objectives with the vision of change (Konopik et al. 2022; Nour & Arbuss 2024). Organisations with strong internal systems are better positioned to capitalise on and rapidly and successfully implement digitalisation (Konopik et al. 2022; Steyn 2018).

The successful adoption and utilisation of technologies depend, among others, on OrgCap, which includes resources for digitalisation and digital competencies (Wibowo & Maulida 2024). Similarly, simpler and less bureaucratic organisational structures are seen to support the uptake of digital technologies (Thite 2019). A transformed HR function enables organisations to fluidly respond to digital disruptions through recruiting, developing, rewarding and maintaining a workforce that is digitally competent (Thite & Bhatta 2019). The HR function also assists through the adoption of ChanMag techniques that promote communication, employee engagement, support and training, as well as provide continuous feedback loops (Kakungulu 2024). As such, OrgCap, OrgStru, ChanMag and transformed HR are forwarded as dynamic internal factors underpinning the sensing, seizing and reconfiguring of digitalisation initiatives that provide organisations with a distinct competitive advantage (Konopik et al. 2022).

Organisational capability

Organisational capabilities are internal competencies, such as knowledge, processes and tools that enable an organisation to achieve competitive advantage through the formulation and execution of strategic goals (Weritz et al. 2024). Organisational capability enables the ability to sense and respond quickly to digitalisation-related changes, develop marketable digital agendas, assign capable people to digitalisation tasks, share information and collaborate across departments and with external partners, which is part of seizing opportunities (Riedinger, Netscher & Zimmermann 2024; Weritz et al. 2024).

Investment in digital technologies requires funding, which also defines the digital readiness of the organisation (Chirumalla et al. 2025). Access to sustainable funding for digitalisation requires effective partnerships and relationships with both internal and external stakeholders, considering that diverse projects are competing for funds (Mhlungu et al. 2019). As such, viable financing models for leveraging emerging digital technologies should be adopted (Cantemir, Gabriel & Dorin 2023), as digitalisation initiatives are likely to fail because of a lack of appropriate funding mechanisms (Dörr et al. 2023; Mhlungu et al. 2019).

Successful digitalisation also depends on an organisation’s ability to configure a clear digitalisation vision and set clear digitalisation goals (Dörr et al. 2023). Setting too ambitious business digital agendas may be beyond the resource capability of the organisation (Lokuge & Duan 2021). It is suggested that organisations adopt a staged approach to implementing technology to minimise risks and failure (Dörr et al. 2023). This approach is related to ‘soft system’ thinking, in which the adoption of technology is being viewed as one aspect of a whole (Thite & Bhatta 2019). Following a small-scale approach, adopted technologies are first tested among employees, who then give feedback before the project moves to the next stage. In this respect, leadership plays a critical role in ensuring that the strengths and weaknesses of the organisation are considered when introducing digital strategies. As such, OrgCap includes having a clear vision and strategy, building networks, scanning the business environment, optimally managing operations, ensuring a continuous flow of information and promoting innovation (Konopik et al. 2022).

Organisations will benefit from drawing up a digital roadmap that outlines which resources and roles will be allocated in alignment with the digital vision (Chirumalla et al. 2025). This should include ensuring that data security issues are addressed, including the safeguarding of organisational and personal data (Chirumalla et al. 2025; Subramaniyan, Thite & Sampathkumar 2019). Based on the above review of the literature in conjunction with the objectives of this study, the following hypothesis is proposed in the context of South African organisations:

H1: Effective organisational capability practices support successful digitalisation in South African organisations.

Organisational structure

Organisational structure as an internal organisational factor refers to all positions, departments, systems and subsystems that influence decision-making and communication, how work is performed, information flows, and the nature of work relationships (Shahzad et al. 2025). The type of structure is influenced by centralisation, formalisation, departmentalisation, span of control and specialisation (Robbins & Judge 2019). Digitalisation could be planned and managed by a chief digital officer who, among others, is responsible for developing and scouting emerging digital technologies, while a chief information officer could be tasked with communicating, clarifying and directing the optimal utilisation of the digital technologies within the organisation (Cantemir et al. 2023; Shahzad et al. 2025). Digitalisation is perceived to be more successful when organisational structures foster interconnectedness and agile decision-making (Thite 2019). Such structures promote rather than impede innovation, experimentation and teamwork (Lokuge & Duan 2021; Shahzad et al. 2025).

Partnerships and collaboration, with both internal and external groups, are deemed important for digitalisation (Eurofound 2021), and this is seen as the product of flatter structures that foster innovation and change (Bhatta & Thite 2019). In a flatter OrgStru, there is little formalisation, and authority is centralised in a single person, which reduces bureaucracy and speeds up decision-making needed for the adoption of digital technologies (Bhatta & Thite 2019). The uptake of digital technologies is hampered by rules and procedures that slow down decision-making (Bhatta & Thite 2019). Collaboration, agility and customer centricity foster digital efficacy (Imran et al. 2022; Mhlungu et al. 2019; Shahzad et al. 2025) even though it is also acknowledged that some form of control and rules are required to govern the roll-out of digital technologies (Lokuge & Duan 2021). As such, a balance between control, formal coordination and flexibility is required. Centralisation is deemed more relevant during the early stages of the digitalisation process to give impetus to change, while decentralisation becomes more important as the digitalisation process evolves (Sabljic 2024). Based on the above review of the literature in conjunction with the objectives of this study, the following hypothesis is proposed in the context of South African organisations:

H2: Effective organisational structure practices support successful digitalisation in South African organisations.

Change management

Change management refers to a planned and structured process followed to effectively manage and implement change in an organisation, transforming the organisation from its present state to a desired state (Robbins & Judge 2019). Digitalisation is a strategic intervention involving both technology and people and should be implemented within a ChanMag framework (Verma et al. 2024).

Change is often met with resistance, and research shows that this is also the case with digitalisation (Alotumi 2020; Cieslak & Valor 2024; Noriega Del Valle, Łaba & Mayer 2024). The most notable reasons for employees resisting the adoption of digital technologies are a perceived increase in workload, distrust and fear of job displacement (Noriega Del Valle et al. 2024). Resistance to change could slow down the process of digitalisation if these concerns are not addressed. To manage change effectively and address potential resistance, change models, such as Lewin’s three-step model (unfreeze, move and refreeze) and Kotter’s eight-step model of change, could be utilised (Burnes 2020; Karakuş & Yalçın 2024; Robbins & Judge 2019). Kotter’s model suggests creating urgency, fostering powerful coalitions, articulating vision, communicating, the removal of obstacles, broad-based participation, celebration of short-term wins, and consolidation as important milestones in the change process (Karakuş & Yalçın 2024). In essence, this means acknowledging that digitalisation starts with creating a business case for digitalisation and identifying influential and capable people to manage the process.

Drawing from the principles of these models, recommendations are made for organisations that are planning to embark on digitalisation. For example, it is recommended that affected employees and stakeholders are sensitised towards the digitalisation strategy and are allowed to give their input (Valtonen & Holopainen 2025). It also includes providing employees with training, and piloting new systems before organisational-wide implementation, as well as using team building and mentoring as mechanisms for knowledge sharing (Cantemir et al. 2023; Ito et al. 2021). Employees with digital competence should be used as change champions and role models, working towards reducing resistance to change (Ito et al. 2021).

Various in-person and online communication mechanisms could be used to disseminate information about digitalisation, such as the vision for and benefits of digitalisation, and to address employee concerns and queries. Workshops, webinars, dashboards and chatbots provide opportunities for communication, learning and monitoring (Cantemir et al. 2023; Eurofound 2021). Employees, as crucial stakeholders, should be represented in decision-making processes (Valtonen & Holopainen 2025), and if trade unions are in place, they should also be involved from the onset (Eurofound 2021). Trade union representatives can flag concerns related to the speed of digitalisation, the impact on jobs and employee well-being, allowing for proactive intervention by management (Eurofound 2021). Based on the above review of the literature in conjunction with the objectives of this study, the following hypothesis is proposed in the context of South African organisations:

H3: Effective change management practices support successful digitalisation in South African organisations.

Human resource transformation

Human resource is a crucial internal organisational factor affecting digitalisation efforts. Human resource transformation entails changing the way HR operates in alignment with the goals of the business (Verma et al. 2024). As such, HR practices, processes, and systems should be reconfigured in support of the digitalisation agenda. Human resource should reinvent itself similar to what is expected of the rest of the organisation. They need to become digitalised, innovative, cross-functional collaborators and agile (Ulrich 2019). For this to happen, HR should implement digital technologies across all its major functions.

Human resource managers are the custodians of the welfare of employees in an organisation and hence are also involved in the ChanMag process (Ulrich 2019), where they ensure that the employees are ready for the uptake of technology, for example, by ensuring that they are equipped with digital competence (Dörr et al. 2023; Faiz, Le & Masli 2024). Human resource should build an organisational culture and climate supportive of digital innovation, risk-taking and collaboration. In this vein, as change agents, HR should ensure that employees have the physical and psychological resources to execute new roles that emerge from digitalisation (Bhatta & Thite 2019). Adaptable, flexible and digitally skilled employees should be recruited, while existing employees should be reoriented and reskilled, with 360-degree performance management models used to identify development needs (Bhatta & Thite 2019). Traditionally, the role of HR was predominantly operational, focusing on administration and executing strategies through the implementation of controls and standards (Chapano, Mey & Werner 2023). Rewards and recognition were based on individual contribution and performance appraisals were carried out by all managers (Bhatta & Thite 2019). Within the digital age, where simplicity, transparency, unity and adaptability are at the epicentre, these practices may become ineffective and counterproductive.

In their redefined roles, HR should be network connectors, agile enablers, innovation architects and data analysts. Fulfilling these roles effectively will reflect in HR’s ability to attract global talent (Chapano et al. 2023), embed agile working methods and principles across all organisational processes, equip employees with the necessary resources for innovation, and make evidence-based decisions (Cantemir et al. 2023). Past research on digitalisation dwelt much on the characteristics of technological innovation while overlooking HR-related issues, including developing a shared understanding in support of digitalisation and promoting employee self-efficacy and voluntarism (Bothma & Mostert 2023). Based on the above review of the literature in conjunction with the objectives of this study, the following hypothesis is proposed in the context of South African organisations:

H4: Effective HR transformation practices support successful digitalisation in South African organisations.

Research methods and design

Research paradigm, design and approach

Research methodology presents an organised approach to collecting, presenting and analysing reliable and valid data to solve a research problem (Kumar 2019). In this study, a positivist research paradigm was adopted, leading to an objective explanation of data gathered, and with the analysis being based on existing theories and models (Kumar 2019). A descriptive, correlational and explanatory research design, incorporating a quantitative approach, was utilised in this study (Saunders, Lewis & Thornhill 2023). Positivism emphasises the use of quantitative methods to establish relationships between different variables and to test hypotheses (Kumar 2019).

Population

A population includes people or objects of interest to the researcher in terms of finding answers to the studied phenomenon (Saunders et al. 2023). The population for this study comprised operational managers, HR professionals, and employees working within organisations listed on the Johannesburg Stock Exchange (JSE) in South Africa. In this study, the selection of JSE-listed organisations within retail, finance, and manufacturing was based on their reputation as being successful, their capacity to invest in digital technologies, and triple bottom-line reporting that necessitates them to report on people in addition to governance and environmental issues (BMR 2025; Matemane, Msomi & Ngundu 2024; Matsepe & Van der Lingen 2022; Radebe 2024). As such, it was assumed that valuable information could be collected on internal organisational factors (OrgCap, OrgStru, ChanMag and HR practices) serving as enablers of organisational digitalisation.

Sampling

Sampling involves choosing a representative but smaller part of the population to study a phenomenon (Kumar 2019). For this study, purposeful, convenience and snowball non-probability sampling techniques were combined (Saunders et al. 2023). Using purposive sampling, respondents had to be employed in JSE-listed organisations in South Africa within the retail, financial, or manufacturing sectors for at least 3 years, and be operational managers, HR professionals, or employees. While convenience sampling was used to survey respondents who were available and willing to participate in the study, snowball sampling extended the invitation to participate to eligible respondents within the networks of participants. While the goal was to get as many responses as possible, the final sample that was achieved was 111 respondents. A sample size of 100 respondents is universally accepted as a minimum for quantitative research (Creswell 2014).

Research measuring instrument

A structured questionnaire was used, with it being divided into two sections: ‘demographic details’, capturing background information on the respondents and ‘factors influencing digitalisation’, measuring internal organisational factors, these being OrgCap, OrgStru, ChanMag and HRTrans. Demographic information was collected to screen the respondents and to ensure only eligible responses were analysed. ‘Factors influencing digitalisation’ contained 27 items divided into OrgCap (7 items), OrgStru (5 items), ChanMag (7 items) and HRTrans (8 items). A five-point Likert rating scale was used, with answer options ranging from not at all: (1), small extent (2), moderate extent (3), great extent (4), to a very great extent (5). An additional response option, ‘do not know’ (coded as 0), was included so that respondents could refrain from rating items they felt uncertain about, with such responses then treated as missing values, thus improving the quality of the data. The 27 items were derived from the extant literature (Faiz et al. 2024; Oyetade et al. 2024; Shahzad et al. 2025; Ulrich 2019; Valtonen & Holopainen 2025) on the four internal organisational factors that influenced digitalisation, as no existing validated questionnaire was found. For this study, Cronbach’s alpha coefficients of above 0.9 were obtained, indicating reliability of the sub-scales (Saunders et al. 2023). A total of 185 questionnaires were distributed (60 online via the QuestionPro platform and 125 in-person). An invitation to complete the online survey was made on social media platforms, such as LinkedIn, resulting in only 60 respondents completing the online questionnaire. Therefore, provision was made to distribute hard copies of the questionnaire to respondents who requested them and preferred hard copies to the online ones. Of the 125 questionnaires distributed in-person, 120 were returned. These manually collected data were added to those on the online system, resulting in a total of 180 responses. To measure ‘factors influencing digitalisation’ (Figure 1), items included were ‘conducting frequent audits to monitor digitalisation efforts’, ‘restructuring the organisation to support digital networks’, ‘adopting a ChanMag process for the adoption of digital technologies’, and ‘HR purposefully developing a digital mindset among employees’. Respondents were asked to score the degree to which these activities successfully supported digitalisation in their organisation.

FIGURE 1: Perceived application of organisational capability, organisational structure, change management and human resource transformation in supporting digitalisation: Mean scores.

Statistical analysis

Data analysis is a systematic approach that involves examining, transforming and simplifying collected data to draw conclusions and facilitate decision-making (Kumar 2019). Descriptive statistics included mean scores (M), standard deviations (SD) and Cronbach’s alpha coefficients. To determine significance and relationships among the variables, one-sample t-tests and Pearson product-moment correlation were used (Saunders et al. 2023).

Ethical considerations

Ethical clearance to conduct this study was obtained from Nelson Mandela University Research Ethics Committee (Ref. No. 1554). All ethical protocols relating to this study were observed. The cover letter to the questionnaire provided information about the study, guidelines for participation and eligibility criteria. Respondents were informed that they could withdraw from the study at any given time without any consequences for them. They also had to indicate voluntary participation by providing consent. This article reports on the quantitative section of a larger mixed-method research study undertaken to ascertain factors enabling digitalisation in the South African workplace.

Results

After checking eligibility and data cleaning, 111 of the 180 questionnaires were found usable, indicating a 61.66% response rate. The final sample consisted mostly of respondents with either a diploma (34%), higher certificate (27%), Grade 12 certificate or less (20%), or an advanced diploma or degree (16%) as their highest qualification. Most respondents (47%) were working in retail, followed by finance (31%) and manufacturing (23%). Also, most respondents were identified as employees (54%) or operational managers (43%).

Internal organisational factors: Descriptive statistics

Table 1 depicts descriptive statistics for internal organisational factors (OrgCap, OrgStru, ChanMag and HRTrans). The scale was found to be reliable as the Cronbach’s alpha coefficients for all the factors were above 0.90 (see Table 1) (Saunders et al. 2023). All the factors obtained mean (M) scores of above 3, indicating responses that lean towards ‘moderate’ or ‘great extent’. Organisational capability practices obtained the highest mean score (M = 3.75), followed by OrgStru (M = 3.40), ChanMag (3.31) and HRTrans (3.32). A standard deviation (SD) of above 0.90 was obtained for all the factors (see Table 1), indicating divergent views in terms of the internal organisational factors enabling digitalisation.

Figure 1 presents the results for the items measured in the study. The highest mean score was obtained for the OrgCap item ‘adopting systems to protect personal information’ (M = 4.07). This was closely followed by ‘allocating budget for digitalisation in the organisation’ (M = 3.83) and ‘establishing a clear digital business strategy’ (M = 3.78). All other items for OrgCap inclined to a ‘great extent’ in supporting digitalisation, with mean scores of above 3.60 (see Figure 1). The other items that had mean scores that were above average, and thus demonstrating the perceptions of respondents regarding their importance in digitalisation belonged to ChanMag, and included ‘adopting a ChanMag process for the adoption of digital technologies’ (M = 3.60), ‘preparing the organisation for digitalisation’ (M = 3.53), and ‘preparing staff for the introduction of digitalisation’ (M = 3.57) (see Figure 1). The rest of the items, including items for OrgStru and HRTrans, recorded mean scores of above 3.0, showing that the respondents perceived these as drivers of digitalisation, although at varying degrees.

To assess the hypotheses and the significance of the role of the internal organisational factors in digitalisation, one-sample t-tests were used. The t-test results for the internal organisational factors are displayed in Table 2 and Table 3. Using a t-test, each internal organisational factor outcome is evaluated to determine whether it is significantly greater than ‘3’, a hypothetical mean score showing an answer option depicting ‘moderate extent’ (M = 3). The average scores for OrgCap, OrgStru, ChanMag and HRTrans exceed the value of ‘3’ to a statistically significant extent, as summarised in Table 2 and Table 3. For example, the mean score for OrgCap (3.75 ± 1.00) significantly exceeds the ‘3’ rating (t [110] = 7.961, p = 0.001) (see Table 2 and Table 3), indicating a mean gap of 0.754 (95% CI, 0.566–0.942), while the mean score for OrgStru (3.40 ± 1.00) significantly exceeds the ‘3’ rating (t [110] = 4.244, p = 0.001), indicating a mean gap of 0.403 (95% CI, 0.215–0.591). Moreover, the mean score for ChanMag (3.31 ± 0.90) significantly exceeds the ‘3’ rating (t [110] = 3.574, p = 0.001), indicating a mean gap of 0.306 (95% CI, 0.136–0.476). Lastly, the mean score for HRTrans (3.32 ± 1.00) significantly exceeds the ‘3’ rating (t [110] = 3.310, p = 0.001), indicating a mean gap of 0.315 (95% CI, 0.126–0.503) (see Table 2 and Table 3).

This means that effective OrgCap, OrgStru, HRTrans and ChanMag practices significantly support successful digitalisation in South African organisations, and therefore, all four hypotheses are accepted.

To determine whether a relationship exists among the four internal organisational factors in supporting digitalisation, Pearson product-moment correlations were computed. The results are displayed in Table 4. Regardless of the sample size, if |r| ≥ 0.300, correlations are deemed statistically and practically significant (Gravetter & Wallnau 2013). For this analysis, at the 0.05 level for n = 111, a correlation coefficient r is statistically significant if |r| ≥ 0.187 (Gravetter & Wallnau 2013), and strong if |r| ≥ 0.60, moderate if |r| ≥ 0.40, and weak if |r| ≥ 0.29 (Cohen 1988). As depicted in Table 4, correlation coefficients range from (r = 0.552) to (r = 0.841), signifying positive and strong relationships among all the factors (Gravetter & Wallnau 2013). Because the correlations are above the practically significant level of 0.30 (Gravetter & Wallnau 2013), it is put forward that the correlations are both statistically and practically significant.

The results in Table 4 suggest that OrgCap, OrgStru, ChanMag and HRTrans are supportive of one another in their contribution to digitalisation. In addition, HRTrans and ChanMag (r = 0.841), and HRTrans and OrgStru (r = 0.711), with the strongest relationships, suggest that the respondents consider these factors to be inseparable and paramount in enabling digitalisation.

Discussion

Outline of the results

This discussion focuses on the descriptive, one-sample t-test and correlation analysis results. This study empirically investigated internal organisational factors, these being OrgCap, OrgStru, HRTrans and ChanMag in terms of supporting digitalisation. A survey was administered among operational managers, HR professionals, and employees working in companies listed on the JSE in South Africa, within financial, retail, and manufacturing sectors.

Descriptive analysis

The mean results for the internal organisational factors, OrgCap, OrgStru, ChanMag and HRTrans, ranged from 3.31 to 3.75 (Table 1), revealing moderate to great levels of agreement among respondents that these enablers support digitalisation while also providing a nuanced reality that some of these factors, despite not being the strongest, are adequate. Organisational capability (M = 3.75) emerged as the strongest contributor to digitalisation success, followed by OrgStru (M = 3.40). Change management and HRTrans (M = 3.31 and M = 3.32) obtained similar results, at a moderate level, suggesting that while these practices are seen as enablers, there is room for improvement in this regard. Consistent with the literature, these results cement the importance of internal organisational capacity to enable digitalisation (Dörr et al. 2023; Zhang et al. 2023). In terms of OrgCap, digitalisation requires that organisational systems, resources, procedures, measures, and people issues are addressed when digitalisation is planned and implemented (Guo et al. 2025; Motamedimoghadam et al. 2024). Organisational structures should be flat and fluid to promote collaboration as well as synergy in the use of the digital technologies (Lokuge & Duan 2021; Thite 2019). Human resource departments need to transform and become change leaders, guide digital adoption, foster a culture of agility, ensure strategic alignment, and foster a balance between technology and employee well-being. Effective ChanMag ensures that people, processes and technology are managed in a manner that will create buy-in and minimise resistance (Valtonen & Holopainen 2025).

‘Adopting systems to protect personal information’, an item for OrgCap, had the highest mean (M = 4.01) among all the individual items measured (see Figure 1). This underscores the importance of policies, practices and guidelines for ensuring information security and privacy in digitalisation. It also highlights the need for collaboration between HR and the Information and Technology (IT) team to ensure that employee privacy is protected (Chapano et al. 2023; Chirumalla et al. 2025; Subramaniyan et al. 2019).

All the items for OrgCap obtained high mean values, such as ‘allocating budget for digitalisation in the organisation’ (M = 3.83) and ‘establishing a clear digital business strategy’ (M = 3.78) (see Figure 1), highlighting the critical roles of these practices in digitalisation, and mirroring the findings from the literature. A clear digitalisation vision and digitalisation goals foster the achievement of a digitalisation agenda (Dörr et al. 2023), while a lack of funding for digitalisation projects deters organisations from successfully embarking and navigating the digitalisation terrain (Dörr et al. 2023; Mhlungu et al. 2019).

Furthermore, high mean values for ChanMag items, namely ‘adopting a ChanMag process for the adoption of digital technologies’ (M = 3.60), ‘preparing the organisation for digitalisation’ (M = 3.53), and ‘preparing staff for the introduction of digitalisation’ (M = 3.57) (see Figure 1) indicate the strength of these practices in digitalisation. Again, this is consistent with findings from the literature. Kotter’s (1995) model underlines that transformational change, and thus also change brought about through digital initiatives, demands strong leadership, regular communication, and a systematic approach to implementation (Karakuş & Yalçın 2024). Similarly, Lewin’s model suggests preparing for digitalisation, moving by changing technologies, systems, or behaviours, and refreezing, which is institutionalising change by operating optimally in the new digital environment (Burnes 2020). Organisations that employ formal ChanMag approaches are more likely to achieve project objectives (Valtonen & Holopainen 2025). Effective digitalisation requires changing mindsets as well as working practices (Cantemir et al. 2023; Ito et al. 2021). This includes equipping employees with the requisite digital expertise to use technologies seamlessly (Cantemir et al. 2023; Ito et al. 2021), with HR playing a major role in ensuring that employees are skilled (Thite 2019).

Overall, ChanMag (M = 3.31) and HRTrans (M = 3.32) emerged as playing a more moderate role in digitalisation. Average scores were obtained for items such as ‘consultation with trade unions to gain their support for digitalisation’ (M = 3.02) and ‘implementing chatbots to help employees with digital applications’ (M = 3.00) for ChanMag, and ‘adopting the reward system to foster digitalisation’ (M = 3.18) for HRTrans (see Figure 1). The use of chatbots, the rewarding of digital initiatives, and consulting with trade unions are practices commonly found in digitally advanced organisations (Eurofound 2021). Although JSE companies are known for their investment in digital technologies (Matemane et al. 2024), the full institutionalisation of these practices across subsidiaries and sections requires strong alignment, and this is attained via effective ChanMag processes.

The results could also be attributed to an outdated belief that the HR department is an administrative function rather than a strategic partner in digitalisation (Ulrich 2019). No matter how lucrative a technological investment could be, skill shortage, resistance to change, burnout, and turnover are people issues that can stall the success of digitalisation (Thite & Bhatta 2019).

One-sample t-test and testing of the hypotheses

One-sample t-test results indicated that OrgCap (M = 3.75; SD = 1.00) (t [110] = 7.961, p = 0.001); OrgStru (M = 3.40; SD = 1.00) (t [110] = 4.244, p = 0.001), ChanMag (M = 3.31; SD = 0.90) (t [110] = 3.574, p = 0.001) and HRTrans (M = 3.32; SD = 1.00) (t [110] = 3.310, p = 0.001) statistically and significantly exceeded the ‘3’ rating, demonstrating that OrgCap, OrgStru, ChanMag and HRTrans are perceived as significant enablers of digitalisation. As such, all four hypotheses formulated for this study were accepted. Effective OrgCap practices support successful digitalisation in South African organisations (H1). Effective OrgStru practices support successful digitalisation in South African organisations (H2). Effective ChanMag practices support successful digitalisation in South African organisations (H3). Effective HRTrans practices support successful digitalisation in South African organisations (H4). These results emphasise that internal organisational factors are fundamental to digitalisation (Bhatta & Thite 2019; Dörr et al. 2023; Guo et al. 2025; Imran et al. 2022; Lukito et al. 2022; Motamedimoghadam et al. 2024; Sabljic 2024; Shahzad et al. 2025; Van Tonder et al. 2023).

Mhlungu et al. (2019) found no statistically significant relationship between digitalisation and OrgStru, but in their study, only senior executives who were actively involved in digitalisation initiatives were surveyed. Senior executives have more authority and are more empowered than employees, and may find organisational structures less restrictive (Shahzad et al. 2025). In addition, measures to preserve data security should be considered during any restructuring process (Subramaniyan et al. 2019). Thus, modifying organisational structures to be more flexible rather than mechanistic can foster digitalisation (Imran et al. 2022).

Correlation analysis

As depicted in Table 4, significant and practical relationships were revealed among OrgCap, OrgStru, ChanMag and HRTrans (Gravetter & Wallnau 2013), suggesting that organisational capabilities, HR, OrgStru, and ChanMag are part of an integrated internal digital ecosystem, collectively working together as enablers of digitalisation. Digitalisation requires co-alignment of practices rather than isolated initiatives, as it is also depicted in Kotter’s (1995) model under consolidation of change efforts. These empirical results are consistent with the literature. For instance, the business digitalisation strategy should be executed in consideration of OrgStru, and a ChanMag process should be adopted to prepare employees for change, enabling skills development, experimentation, and support from management (Van Tonder et al. 2023). The strong relationships detected between OrgStru and HRTrans (r = 0.711) and HRTrans and ChanMag (r = 0.841) are aligned with findings in the literature. It is the role of the HR department to ensure that digitalisation efforts are supported by a digitally competent workforce, agile organisational structures, and that the employees are guided throughout the digitalisation process (Thite 2019).

Practical implications

Researchers and organisational leaders could benefit from the findings of this study. The literature revealed a lack of empirical research on internal organisational factors supporting digitalisation (Gong & Ribiere 2023; Heredia et al. 2022; Machado et al. 2021; Oyetade et al. 2024; Zhang et al. 2023), especially within the South African context (De la Porte & Higgs 2019; Gaorekwe & Bwalya 2024; Hadzic 2024; Kayser et al. 2023; Mateko et al. 2025; Mhlungu et al. 2019). In most previous studies, internal organisational factors were investigated as outcomes of digitalisation and not as enablers of digitalisation (Sabljic 2024). Also, a vast amount of previous research focused on the influence of digitalisation on performance (Llopis-Albert et al. 2021; Polevaya & Shustova 2023), overlooking the fact that without a solid foundation, the envisaged positive outcomes of digitalisation are unattainable. Thus, the findings of this study addressed this gap in knowledge and provided the basis for future research. Furthermore, the insights gained from this study could benefit managers and practitioners, as they should consider the internal organisational context before embarking on digitalisation.

The results of this study confirmed that OrgCap, OrgStru, ChanMag and HRTrans significantly support digitalisation in South African organisations. It is now clear, based on the results of this study, that these internal organisational factors are paramount to the success of digitalisation. Instead of treating these internal factors as support activities, organisations should strategically prioritise and institutionalise them. The study also confirms that investing in technology alone will not render success if the internal context is not considered. Therefore, the internal systems of the organisation should be assessed and reconfigured before and during digitalisation, for the organisation to remain resilient while changing in alignment with the vision and operational model.

Organisational capability emerged as the most important factor in digitalisation. It is recommended that organisations should ensure adequate protection of people’s information, adequate budget for digitalisation, and establish digitalisation as a pivotal business strategy. A cross-functional task team, including IT specialists, HR professionals, managers and employee change champions, should be appointed to plan, implement and monitor the digitalisation project. This team should have both technical and ChanMag knowledge and capabilities. From a technical, legal and moral perspective, adequate measures should be in place to protect sensitive data, and these can include advanced encryption of all digital devices, firewalls and antivirus software (Subramaniyan et al. 2019).

In alignment with ChanMag theory and practice, a roadmap for achieving the digital strategy should be crafted, with short-, medium- and long-term goals. Risks can be minimised by customising digitalisation strategies to the needs of the organisation, for example, by adopting a phased approach (Dörr et al. 2023; Lokuge & Duan 2021). The necessary budget and resources should be allocated to the digitalisation project, and the project should be closely monitored and milestones reported (Dörr et al. 2023; Mhlungu et al. 2019). A digital business strategy ensures that the organisation implements digital strategies that best suit its purposes, satisfy the needs of customers, improve working systems, and strengthen stakeholder relationships, and ultimately improve competitiveness (Riedinger et al. 2024; Weritz et al. 2024).

Theoretical implications

The findings of this study align with the DCF that highlights the importance of managing internal resources to sense and seize digital opportunities and reconfigure the organisation in response to rapid digital disruption (Steyn 2018). In addition, this study has strengthened the relevance of ChanMag models in managing digitalisation projects. Adopting a ChanMag process and preparing the organisation and employees for digitalisation were some of the key ChanMag practices rated high for digitalisation. Employees may find digitalisation disruptive as it implies that traditional processes and procedures, as well as roles and responsibilities, will change, and can lead to resistance. Resistance to change can be addressed by applying principles of ChanMag based on ChanMag models (Lewin’s 3-step model and Kotter’s 8-step model), which include preparing for change, articulating an inspiring vision for digitalisation, involvement of relevant stakeholders, ample communication, broad-based empowerment, celebrating milestones, recognising contributions and changing mindsets.

The findings revealed significant positive correlations among the identified internal organisational enablers measured in this study, confirming that collectively they serve as mutually reinforcing pillars in the digitalisation process. These pillars provide a framework for organisations for their digitalisation efforts, in pursuit of establishing a more agile and competitive business model.

Limitations and recommendations for future research

This study played a role in closing a gap in empirical research regarding internal organisational enablers of digitalisation, departing from previous studies that mainly focused on these factors as outcomes rather than inputs of digitalisation. However, limitations should also be observed. This study focused on digitalisation efforts in JSE-listed organisations and did not involve respondents from the public sector or from small- and medium-sized enterprises (SMEs). Furthermore, a cross-sectional design was used; longitudinal studies would probably provide deeper insights into the influence of internal factors on digitalisation over time. Future research could cover these sectors. It would also be interesting and valuable to conduct a study among digitalisation specialists to explore what they typically find helpful and frustrating in terms of organisational ChanMag processes.

Conclusion

This study aimed to investigate the extent to which internal organisational factors, these being OrgCap, OrgStru, HRTrans and ChanMag, facilitate digitalisation in selected South African sectors. This study, both from the literature and empirical results, illuminated that internal organisational factors of OrgCap, OrgStru, HRTrans and ChanMag are important antecedents and enablers of successful digitalisation. Using the DCF in the South African context and specifically within the three sectors of finance, retail and manufacturing, the study demonstrates that targeted investments in these areas can yield significant digitalisation success. Therefore, this study has addressed a research gap in internal enablers of digitalisation in the South African context. Organisational leaders should be motivated by the results of this study and consider these foundational drivers before and during the digitalisation journey.

Acknowledgements

This article is based on research originally conducted as part of Munodani Chapano postdoctoral ad hoc study titled ‘Factors enabling digitalisation in the South African workplace: a multi-level perspective’. This is an unpublished study.

The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article.

Munodani Chapano: Data curation, Formal analysis, Writing – original draft, Writing – review & editing. Amanda Werner: Writing – review & editing. All authors reviewed the article, contributed to the discussion of results, approved the final version for submission and publication, and take responsibility for the integrity of its findings.

This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.

The data that support the findings of this study are available from the corresponding author, Munodani Chapano, upon reasonable request.

The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency or that of the publisher. The authors are responsible for this article’s results, findings and content.

References