Digital Transformation Impact on Agility and Strategic Risk Management

Mohamed Ahmed Saleh¹ and Mohamed Saad^2,

¹Arab Academy for Science, Technology and Maritime Transport, Graduate School of Business (AASTMT)

²The British University in Egypt (BUE)

Cite this paper:
Mohamed Ahmed Saleh and Mohamed Saad. Digital Transformation Impact on Agility and Strategic Risk Management. Journal of Business and Management Sciences. 2023; 11(1):63-82. doi: 10.12691/jbms-11-1-5

Abstract

Purpose Egypt embarked ambitious strategic plans a few years ago to cope with the emerging new technologies and innovation. Therefore, the organizations operating privet sector working in Egypt is setting the Digital Transformation as a priority goal. Therefore, the main purpose of this study to examine the impact of digital transformation on the organizational Agility and the Strategic Risk Management. Objective: The aim of the study is to find out the impact and the relationships between the digital transformation, organizational agility and strategic risk management in the Egyptian SME working in the privet sector, in additional to investigating the role played by the Agility in the relationship between the digital transformation and the strategic risk management. Hypotheses: Based on empirical literature, the assessment of the variables in the is study were depending on several perspectives. For Digital Transformation the main capabilities used in evaluating the digital readiness of the organization were (strategic, leadership, market, operational, people expertise, cultural, governance and technology). For Agility the items used for agility measuring were (competency, flexibility, quickness, responsiveness). The Strategic Risk management were examined by (culture, process, experience, application, partnership). the study is examining a proposed model of a moderating role of Agility in the relationship between the Digital transformation and the strategic risk management. Design/Methodology: The study proposes a research model built on the basis of extensive research and a fully constructive literature review that simulates the variables and the relationships between all these variables. Based on this model, a research hypothesis is established, which is further explored through a survey considering primary data and analysis. The target audience is mainly the SME working in Egypt. Middle and upper management are the main target group of this study as they are involved in studying the subject. Findings: Based on the data collected and the analysis used by SPSS, and Smart PLS to analyze the data and test the hypotheses, the results were consistent with all of the hypotheses. And the results of data analysis showed that the Digital Transformation significantly influence the Agility and strategic risk management. Moreover, the Organization Agility is having a mediating Role between Digital Transformation and Strategic Risk management.

Keywords:
strategic Risk management organizational agility digital transformation SME in Egypt

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