Digital Transformation and Its Impact on Strategic Supremacy Mediating Role of Digital HRM: an Evidence From Palestine

Abstract

This study aims to identify the impact of digital transformation in achieving strategic sovereignty in a world that is intensely competitive and in a digitalized era. In the study, the human resource management variable serves as an intermediary variable in the relationship between digital transformation and strategic leadership. The study population consists of (420 top and middle) managers in two mobile telecommunications companies in Palestine, namely: Jawwal and Ooredoo. The study is based on the quantitative approach using a proportional stratified sample, as a 201-item questionnaire is developed using the Seven-Point Likert Scale to study the three variables. The independent variable is digital transformation and its dimensions (Business Model, Customer Experience, Digital Processes, and Impact on People), while the dependent variable is Strategic Supremacy including its three dimensions (Scope of Influence, Competitive Configuration, and Competitive Compression), while digital human resources management serves as an intermediate variable. The data contained herein is analyzed by the Smart PLS Program-structural equation modelling (Second Order). The study shows a positive and good impact of digital transformation on strategic supremacy. The same applies to the impact of digital human resources management thereon. The study concludes that even though digital transformation has a very good impact on human resource management, digital human resources management is a mediating variable in the relationship between digital transformation and strategic supremacy, or even a partial mediator.