How People-centred Values Impact Digital Transformation and Innovation in Businesses

Abstract

This study explores how people-focused values—diversity, equity, inclusion and belongingness—influence digital transformation and business innovation. Data were collected from 386 people working in various businesses. The results show that equity (fair treatment), inclusion (involving everyone in decision-making) and belongingness (feeling part of the team) have a strong positive impact on how businesses use digital technologies. However, diversity by itself did not have a major effect. The study also found that when companies go through digital transformation, it leads to better innovation and new ideas. To study these relationships, advanced tools such as structural equation modelling and confirmatory factor analysis were used. These results highlight that companies that treat employees fairly, include their opinions and help them feel connected are more likely to succeed in adopting digital tools and staying innovative. This research offers useful insights for both scholars and business managers, showing how people-centred values can drive digital and innovative success in a competitive world. It encourages companies to focus on fairness, inclusion and belonging to stay ahead.