Abstract:
Within the current technology-driven business environment, IT firms face
transformative challenges that demand adaptable methodologies to sustain
market leadership and ensure future prosperity. This study aims to identify the
impact of Innovative culture on organisational resilience in the Sri Lankan IT
sector, with a specific focus on the mediating role of Digital Transformation.
Lack of empirical studies that investigate the interplay among Innovative
culture, Digital transformation, and organisational resilience brings novelty to
this research. Using a quantitative approach, data were collected from over 282
participants who were managerial or above-level employees in the Sri Lankan IT
industry via surveys. Partial Least Squares Structural Equation Modelling (PLSSEM)
was employed to analyse the data and test the hypothesised relationship
between variables. The study's findings revealed that an innovative culture has
a significant positive impact on digital transformation, as the innovative mindset
ingrained encourages continuous growth, creativity, and risk-taking, thereby
strengthening digital transformation initiatives. Both Innovative culture and
Digital transformation have a significant positive impact on organisational
resilience. Additionally, it was found that there is a complementary partial
mediation of Digital Transformation in the relationship between Innovative
culture and Organisational resilience. These findings underscore the importance
of fostering an innovative culture and driving digital transformation in the IT
industry to ensure sustainable business processes. Findings provide clear
directions to industry leaders and policymakers for the strategic use of
technology and effective business model design.
