LMRPID-397478
Page 39
30th July 2024
The Impact of Digital Transformation on Strategic Decision-Making and Organizational Performance in Multinational Corporations
Author: ABID MALIK SAMI | LGMID: 27199320190101957
Reviewed by:
Lilac School of Business (LSB)
Paper preview
1. Abstract
2. Introduction
3. Literature Review
4. Methodology
5. Findings
6. Conclusion
7. References
Abstract
Digital transformation (DT) is revolutionizing the global business landscape, and multinational corporations (MNCs) are at the forefront of adopting these changes. This study explores how digital transformation influences strategic decision-making processes and organizational performance in MNCs operating across diverse industries and geographies. Using a mixed-methods approach, the research draws on survey data collected from 150 professionals across various MNCs and in-depth interviews with 30 senior executives directly involved in digital strategy and organizational planning. The findings demonstrate that digital transformation significantly enhances decision-making quality through improved access to real-time data, predictive analytics, and advanced digital tools. Organizations that effectively integrate digital technologies show higher adaptability, better resource allocation, and faster strategic responses to market changes. Furthermore, these companies often achieve stronger financial performance, increased operational efficiency, and higher innovation outputs. The study also uncovers key challenges faced by MNCs, such as internal resistance to change, lack of digital skills, and the complexity of aligning global digital strategies with local execution. Additionally, leadership commitment and digital culture emerged as critical enablers for successful digital transformation. Companies with proactive leadership and a strong digital mindset were better equipped to navigate uncertainty and drive sustainable performance improvements. This research contributes to the growing body of knowledge by highlighting the strategic value of digital transformation and offering a framework that MNCs can follow to align digital initiatives with performance goals. The insights gained can help business leaders, managers, and policymakers understand how to leverage digital tools not only for short-term efficiency but also for long-term strategic advantage.
References
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Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349.
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Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 123-139.
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1-12.
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Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. The Journal of Strategic Information Systems, 28(1), 17-33.
Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J., & Blegind Jensen, T. (2021). Unpacking the difference between digital transformation and IT-enabled organizational transformation. The Journal of Strategic Information Systems, 30(1), 101-123.
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Keywords
Digital transformation, strategic decision-making, organizational performance, multinational corporations, digital competencies
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