본문 바로가기
  • Home

The Influence of Digital Transformation on Firm’s Performance in Korean Manufacturing Industry: Mediating effect of Operational Agility, Process Innovation and Operational Performance and Moderating Effect of Environmental Turbulence

  • Industry Promotion Research
  • Abbr : IPR
  • 2026, 11(1), pp.15~27
  • DOI : 10.21186/IPR.2026.11.1.015
  • Publisher : Industrial Promotion Institute
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Received : October 26, 2025
  • Accepted : November 29, 2025
  • Published : January 31, 2026

Rehman Usman 1

1호서대학교

Accredited

ABSTRACT

Digital transformation (DT) has become a popular strategic tool that is a sort of compulsion for the growth of manufacturing businesses but still there are mixed results on its impact. In this study, the influence of DT on firm’s performance is evaluated, concentrating on Korean manufacturing industry. Furthermore, the mediating roles of operational agility, process innovation and operational performance as well as the moderatingrole of environmental turbulence are examined. Based on dynamic capabilities theory and operations strategy, a mediation–moderation model is tested with 350 respondents (firms) among automotive, electronics and metal industries. Using (PLS-SEM), the evaluation of direct, indirect, serial mediation and moderation effects are tested. The results show that DT does not directly enhance firm performance but rather DT has enabled organizations to become more agile and innovative in their processes, which in turn strengthens operational performance. Mediation Analysis revealing the parallel and serial pathways of mediation by bootstrapping. Moderation analysis shows that environmental turbulence increases the benefits of DT on agility and innovation. The findings reveal that it is not only technology, but capability development plays a significant role in DT success, more specifically under volatile environmental conditions. Businesses should invest in digital transformation that focuses on agility and innovation, support operational indicators as a benchmark of success and take care of environmental turbulence.

Citation status

* References for papers published after 2024 are currently being built.