The Role of Digital Transformation and Digital Competencies in Organizational Sustainability: A Study of SMEs in Lima, Peru

Abstract

Digitalization has significantly transformed businesses in the 21st century, but there are gaps in understanding how it affects human resource management and organizational culture in SMEs in Lima, Peru. This study aims to fill this gap by analyzing the influence of digital transformation, digital competencies, and digital HR management on the organizational culture of SMEs in Lima and how these factors contribute to organizational sustainability. Using a quantitative approach and structural equation modeling (SEM), 307 business leaders were surveyed between January and March 2024. The results show that digital transformation and digital competencies significantly influence digital HR management, which positively impacts organizational culture and promotes sustainable practices. Additionally, it was found that digital HR management mediates the relationship between digital transformation and organizational culture, as well as between digital competencies and organizational culture. It is crucial to invest in digital technologies and foster digital competencies to improve HR management and promote a sustainable organizational culture. In conclusion, digitalization redefines organizational culture and reinforces sustainability, especially in SMEs in Lima, Peru, providing new scientific value by demonstrating these mechanisms of change.