The Impact of Digital Transformation on Employee Performance: The Mediating Role of Innovation – A Case Study of Tourism Businesses in Ho Chi Minh City

Abstract

This study examines the impact of digital transformation on employee performance within tourism businesses in Ho Chi Minh City, emphasizing the mediating role of employee innovation. Digital transformation is analyzed through five dimensions: digital technology, employee digital transformation skills, knowledge sharing, digital culture, and digital leadership capacity. A mixed-methods approach is employed, including expert consultation to refine measurement scales for contextual relevance. Data were collected from 354 valid responses through a combination of direct and online surveys. The data were analyzed using SPSS 25.0 and AMOS 25.0 to test the research hypotheses. Findings reveal that digital culture and digital leadership capacity do not directly influence employee performance but have an indirect effect through employee innovation. In contrast, digital technology, digital transformation skills, and knowledge sharing positively impact performance both directly and indirectly via innovation. Theoretically, this study integrates Resource-Based Theory, Diffusion of Innovation Theory, and the Model of Technology Acceptance in the workplace (MTAM) to construct a comprehensive model of employee performance in the context of digital transformation. Practically, the study offers recommendations for tourism businesses and stakeholders to develop effective strategies that enhance employee performance through digital transformation initiatives.