Impact of Digital Transformation and Process Automation on Business Efficiency

Abstract

The emergence of digital transformation and automation of processes are also becoming strategically imperative processes that companies are aiming at attaining greater efficiency in their business in the modern technology-oriented competitive environment. The present study explored the immediate effects of digital transformation, as well as process automation, on the efficiency of business in Pakistani organizations operating in various industries. The survey design was quantitative cross-sectional. A structured questionnaire containing validated scales of all three constructs was used to gather data of 300 employees working in digitally transforming organizations on a 5-point Likert scale. The convenience sampling was embraced because it was considered conveniently accessible. Data were interpreted with SPSS 25 and AMOS 24 with descriptive statistics, Cronbach alpha reliability testing, Pearson correlation analysis, confirmatory factor analysis (CFA) and structural equation modeling (SEM). Digital transformation had a moderate positive direct impact on business efficiency ( beta = 0.52, p <.001) and process automation also had a moderate positive direct impact (delta = 0.43, p <.001). The group of models described 61.8% of the business efficiency variation (R-squared = .618). Strong construct validity was indicated by CFA with AVE of between .53 and .59 and composite reliability of between.88 and .93. These results show that deliberate investment into digital transformation and systematic deployment of process automation are complementary and mutually strengthening steps toward efficiency increasing an organization and Pakistani organizational leaders have empirical information to make decisions on the basis of digital investments.