DIGITAL TRANSFORMATION STRATEGY AND ORGANIZATIONAL PERFORMANCE: AN EMPIRICAL INVESTIGATION FROM A PROJECT MANAGEMENT PERSPECTIVE

Abstract

Digital transformation (DT) has become a strategic imperative, yet the mechanisms through which a digital transformation strategy (DTS) translates into superior organizational performance remain insufficiently understood, particularly through the lens of project management (PM). This study empirically investigates the relationship between DTS and organizational performance, and examines the mediating roles of project management maturity and agile project management capability. Drawing on a survey of 412 project professionals across seven industries, the study employs partial least squares structural equation modeling (PLS-SEM) to test a multi-path conceptual model. Results indicate that DTS exerts a modest direct effect on organizational performance (β = 0.214) but a substantially larger indirect effect operating through PM maturity (β = 0.612 → 0.347) and agile PM capability (β = 0.548 → 0.296). The findings demonstrate that project management capabilities function as the principal conversion mechanism that turns digital strategy into measurable performance outcomes. The study contributes to the digital strategy and project management literatures by positioning the project organization as a critical mediating layer, and offers practical guidance for executives seeking to operationalize digital ambitions.