Role of Top Management Commitment and Information Technology Investment in Digital Transformation

In recent times, enterprises have been more focused on information technology (IT) investment to transform digitally. Conversely, the reasons to invest in IT are lacking in literature though it can enhance the overall business. Based on the resource-based view (RBV), this research paper explores the influence of IT infrastructure and investments on the digital transformation of organizations considering the context of the digital transformation strategy. Furthermore, this research paper examines the moderating role of digital transformation strategy on the relationships between top management commitment, IT infrastructure, and digital transformation in business. Through a questionnaire survey of small and medium enterprises, 127 sample data were collected, and the ordinal regression method was used to test the hypothesis and the conceptual framework. Digital transformation strategy moderates the relationship between top management commitment, IT infrastructure, and organizational digital transformation. Moreover, top management commitment and IT infrastructure significantly positively affect digital transformation. This research paper investigates the moderating role of digital transformation strategy in the relationship between top management commitment, IT infrastructure investment, and digital transformation performance. As a result, the research paper supplements substantially the body of knowledge on business success, IT business value, digital transformation, and strategic management. Also, the findings can help improve managers’ perceptions of IT business value and provide theoretical guidance on deriving digital transformation performance with the help of IT infrastructure investments.