The Impact of Digital Transformation on Organizational Culture
Chapter from the book:
Gül,
G.
(ed.)
2025.
Transformation from Traditional Organizations to Digital Organizations - II.
Synopsis
Digitalization does not remain confined to the mere application of technological innovations; rather, it represents a paradigm shift that fundamentally reshapes organizational practices, decision-making processes, value creation logics, and stakeholder relations. The success of this transformation is closely tied to the cultural values embedded within organizations and their capacity to adapt to change. Organizational culture, understood as a dynamic system reflecting the identity, operational style, and shared norms, beliefs, and behavioral patterns of members, constitutes a critical foundation in this regard. As an invisible ground shaping the direction and pace of organizational change, culture plays a decisive role in transforming digitalization from a purely technical process into a strategic restructuring. Consequently, digital transformation necessitates a comprehensive process of organizational renewal that extends beyond technical infrastructure, encompassing cultural values, employee participation, and stakeholder collaboration.
Digital transformation affects organizational culture in both transformative and erosive ways. Success is associated with the ability of organizations to align technical capacity with cultural values, enhance employees’ digital competencies, and foster a culture of trust-based collaboration. Therefore, digital transformation should not be regarded merely as a technological innovation but as a comprehensive strategic management process that compels cultural reconstruction within organizations.
