Business Digital Maturity and Organizational Performance: An Empirical Analysis of Service Sector Firms in a Developing Context

Abstract

Though studies have reported positive effects of digital maturity on organizational performance, empirical studies examining digital maturity along the lines of technological maturity are scarce. So, the purpose of this study is to examine the extent to which firms integrate core digital technologies into their business management. To answer the research hypotheses, a quantitative method was employed to collect valid data from 266 service sector employees across 10 centers. The findings from this study reveal that technological maturity positively impacts organizational performance (B =.387; p<.000). The second hypothesis that digital literacy mediates the relationships between technological maturity and organizational performance is validated (B =.228; t =4.300; p<.000). Finally, the hypothesis that there are differences in perceptions about technological maturity and digital literacy among groups of employees is also supported. This study distinctively assesses digital literacy and technological maturity based on the extent to which social, mobile, analytics, cloud, and security technologies are integrated into management processes in Africa.

Key words: Digital maturity; digital literacy; digitalization; digital technologies; SMACS technologies.

DOI: 10.7176/EJBM/15-15-07

Publication date:August 31^st 2023