Exploring the Effects of Digital Transformation on Employees’ Performance Management Systems of the Telecommunication Industry in Bangladesh — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
Exploring the Effects of Digital Transformation on Employees’ Performance Management Systems of the Telecommunication Industry in Bangladesh
Department of Management, Faculty of Business Studies, University of Dhaka, Dhaka, Bangladesh
,
Department of Business Administration, Central Women’s University, Dhaka, Bangladesh
1 Department of Management, Faculty of Business Studies, University of Dhaka, Dhaka, Bangladesh
2 Department of Business Administration, Central Women’s University, Dhaka, Bangladesh
This study examined the effects of digital transformation on employees’ performance management systems in the Bangladeshi telecommunications industry. Using both primary and secondary data, the study sought to comprehend the evolution of digital performance management and its impact on competition. Two hundred employees from Bangladeshi telecommunications companies filled out a questionnaire for the study, and interviews were conducted to obtain additional insight. The findings indicate that digital transformation improves performance management systems, workforce performance, and sustainability. Respondents concurred that digital tools could potentially automate numerous performance management system functions. The implementation of digitalization enhanced operations, productivity, and process management. Employees have also expressed support for digital access to performance-related data. The research identified several drivers of digital transformation in performance management systems, including managerial and operational capabilities, the development of digital skills, and innovation capabilities. Respondents noted that digital performance management facilitates effective communication, enables employees to participate in evaluations, improves objectivity and precision, and provides timely feedback. It was discovered that digital performance management systems reduce costs by rapidly identifying performance issues and eliminating inefficient practices. In addition, they contributed to enhanced productivity, innovation, employee retention, and talent attraction. Cloud-based performance management systems were especially effective at attracting a diverse talent pool. With a Cronbach’s alpha coefficient of 0.877, the research instrument employed in the study exhibited high levels of internal consistency and reliability. The findings of the study indicate, overall, that implementing digital performance management solutions has the potential to confer long-term competitive benefits onto the telecommunications industry in Bangladesh.
KeywordsBangladeshDigital TransformationPerformance Management SystemsTelecommunication Industry
Ahmed, M. S. (2012). Impact of Organizational Culture on Performance Management Practices in Pakistan. Business Intelligence Journal , 5, 50-55.
Andriole, S. J. (2017). Five Myths about Digital Transformation. MIT Sloan Management Review , 58 , 20-22.
Bagozzi, R. P., & Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science, 16, 74-94. https://doi.org/10.1007/BF02723327
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120. https://doi.org/10.1177/014920639101700108
Bekaroo, G., Bokhoree, C., & Pattinson, C. (2016). Impacts of ICT on the Natural Ecosystem: A Grassroot Analysis for Promoting Socio-Environmental Sustainability. Rene w able and Sustainable Energy Reviews , 57, 1580-1595. https://doi.org/10.1016/j.rser.2015.12.147
Berman, S. J. (2012). Digital Transformation: Opportunities to Create New Business Models. Strategy & Leadership , 40, 16-24. https://doi.org/10.1108/10878571211209314
Bharadwaj, A. S. (2000). A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. MIS Quarterly , 24, 169-196. https://doi.org/10.2307/3250983
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital Business Strategy: Toward the Next Generation of Insights. MIS Quarterly , 37, 471-482. https://doi.org/10.25300/MISQ/2013/37:2.3
Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance Measurement: Challenges for Tomorrow. International Journal of Management Reviews , 14, 305-327. https://doi.org/10.1111/j.1468-2370.2011.00318.x
Boxall, P. (1996). The Strategic Human Resource Management Debate and the Resource-Based View of the Firm. Human Resource Management Journal , 6, 59-75. https://doi.org/10.1111/j.1748-8583.1996.tb00412.x
Brown, T. C., O’Kane, P. M., McCracken, M., & Mazumdar, B (2017). Performance Management: A Systematic Review of the Literature and an Agenda for Future Research. Academy of Management , 2017, Article ID: 11987. https://doi.org/10.5465/AMBPP.2017.11987abstract
Büyüközkan, G., & Göçer, F. (2018). Digital Supply Chain: Literature Review and a Proposed Framework for Future Research. Computers in Industry , 97, 157-177. https://doi.org/10.1016/j.compind.2018.02.010
Cardy, R. L. (2004). Performance Management: Concepts, Skills, and Exercises. M. E. Sharpe.
Chenhall, R. H. (2005). Integrative Strategic Performance Measurement Systems, strAtegic Alignment of Manufacturing, Learning and Strategic Outcomes: An Exploratory Study. Accounting, Organizations and Society , 30, 395-422. https://doi.org/10.1016/j.aos.2004.08.001
Cochran, W. G. (1977). Sampling Techniques (3rd ed.). Wiley.
Cody, W. F., Kreulen, J. T., Krishna, V., & Spanler, W. S. (2002). The Integration of Business Intelligence and Knowledge Management. IBM Systems Journal, 41 , 697-713. https://doi.org/10.1147/sj.414.0697
Colbert, A., Yee, N., & George, G. (2016). The Digital Workforce and the Workplace of the Future. Academy of Management Journal , 59 , 731-739. https://doi.org/10.5465/amj.2016.4003
Dominic, N. (2018). Performance Management Can Be an Effective Competitive Advantage . https://www.linkedin.com/pulse/performance-management-can-effective-competitive-advantage-nzuki
Dossi, A., & Patelli, L. (2010). You Learn from What You Measure: Financial and Nonfinancial Performance Measures in Multinational Companies. Long Range Planning , 43, 498-526. https://doi.org/10.1016/j.lrp.2010.01.002
Dremel, C., Wulf, J., Herterich, M. M., Waizmann, J. C., & Brenner, W. (2017). How AUDI AG Established Big Data Analytics in Its Digital Transformation. MIS Quarterly Executive , 16, 81-100.
El Sawy, O. A., Kræmmergaard, P., Amsinck, H., & Vinther, A. L. (2016). How LEGO Built the Foundations and Enterprise Capabilities for Digital Leadership. MIS Quarte r ly Executive, 15, 141-166.
ElMassah, S., & Mohieldin, M. (2020). Digital Transformation and Localising the Sustainable Development Goals (SDGs). Ecological Economics , 169, Article ID: 106490. https://doi.org/10.1016/j.ecolecon.2019.106490
Faugoo, D. (2009). Globalization and Its Influence on Strategic Human Resource Management, Competitive Advantage and Organizational Success. International Review of Business Research Papers , 5, 123-133.
Fichman, R. G., Dos Santos, B. L., & Zheng, Z. (2014). Digital Innovation as a Fundamental and Powerful Concept in the Information Systems Curriculum. MIS Quarterly , 38, 329-343. https://doi.org/10.25300/MISQ/2014/38.2.01
Fischer, M., Imgrund, F., Janiesch, C., & Winkelmann, A. (2019). Directions for Future Research on the Integration of SOA, BPM, and BRM. Business Process Management Journal, 25, 1491-1519. https://doi.org/10.1108/BPMJ-05-2018-0130
Fitz-enz, J. (1995). How to Measure Human Resource Management. McGraw-Hill.
Franco-Santos, M., Kennerley, M., Micheli, P., Martinez, V., Mason, S., Marr, B., Gray, D., & Neely, A. (2007). Towards a Definition of a Business Performance Measurement System. International Journal of Operations & Production Management , 27, 784-801. https://doi.org/10.1108/01443570710763778
Gates, S., & Germain, C. (2010). Integrating Sustainability Measures into Strategic Performance Measurement Systems: An Empirical Study. Management Accounting Qua r terly , 11, 1-7.
Gharib, E. (2009). How Does the Digital Transformation Change the Strategy of a Tel e communication Company? Master’s Thesis, JAMK University of Applied Sciences.
Gruman, J. A., & Saks, A. M. (2011). Performance Management and Employee Engagement. Human Resource Management Review , 21, 123-136. https://doi.org/10.1016/j.hrmr.2010.09.004
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (1998). Multiv a riate Data Analysis . Prentice Hall.
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for Formulating a Digital Transformation Strategy. MIS Quarterly Executive , 15, 103-119.
Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital Innovation and Transformation: An Institutional Perspective. Information and Organization , 28, 52-61. https://doi.org/10.1016/j.infoandorg.2018.02.004
Hoe, S. L. (2008). Issues and Procedures in Adopting Structural Equation Modeling Technique. Journal of Applied Quantitative Methods, 3, 76-83.
Hossain, T., Iqbal, M. M., Shirazi, H., & Noor, M. A. (2022). Use of Social Networking Sites among Undergrade-level Women and Its Effect on Their Plans to Start a Business. South Asian Journal of Social Sciences and Humanities, 3, 140-162. https://doi.org/10.48165/sajssh.2022.3609
Jackson, D. L. (2009). Revisiting Sample Size and Number of Parameter Estimates: Some Support for the N: q Hypothesis. Structural Equation Modeling: A Multidisciplinary Journal , 10 , 128-141. https://doi.org/10.1207/S15328007SEM1001_6
Jackson, N. C. (2019). Managing for Competency with Innovation Change in Higher Education: Examining the Pitfalls and Pivots of Digital Transformation. Business H o rizons , 62, 761-772. https://doi.org/10.1016/j.bushor.2019.08.002
Kane, G. C. (2016). The Dark Side of the Digital Revolution. MIT Sloan Management R e view . https://sloanreview.mit.edu/article/the-dark-side-of-the-digital-revolution/
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2016). Aligning the Organization for Its Digital Future. M IT Sloan Management Review, 58 , 1-28.
Karimi, J., & Walter, Z. (2015). The Role of Dynamic Capabilities in Responding to Digital Disruption: A Factor-Based Study of the Newspaper Industry. Journal of Manag e ment Information Systems , 32, 39-81. https://doi.org/10.1080/07421222.2015.1029380
Kohli, R., & Johnson, S. (2011). Digital Transformation in Latecomer Industries: CIO and CEO Leadership Lessons from Encana Oil & Gas (USA) Inc. MIS Quarterly Executive , 10, 141-156.
Kohtamäki, M., Parida, V., Patel, P. C., & Gebauer, H. (2020). The Relationship between Digitalization and Sterilization: The Role of Sterilization in Capturing the Financial Potential of Digitalization. Technological Forecasting and Social Change , 151, Article ID: 119804. https://doi.org/10.1016/j.techfore.2019.119804
Korsakienė, R. (2012). Determinants of Competitive Advantage and Internationalization: Investigation of Interrelationships. Business: Theory and Practice , 13, 283-291. https://doi.org/10.3846/btp.2012.30
Lawler, E. (2003). Reward Practices and Performance Management System Effectiveness. Organizational Dynamics , 32, 396-404. https://doi.org/10.1016/j.orgdyn.2003.08.007
Lawler, E. (2009). Make Human Capital a Source of Competitive Advantage. Organiz a tional Dynamics , 38, 1-7. https://doi.org/10.1016/j.orgdyn.2008.10.007
Li, F. (2018). The Digital Transformation of Business Models in the Creative Industries: A Holistic Framework and Emerging Trends. Technovation , 92 -93 , Article ID: 102012. https://doi.org/10.1016/j.technovation.2017.12.004
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital Transformation by SME Entrepreneurs: A Capability Perspective. Information Systems Journal , 28, 1129-1157. https://doi.org/10.1111/isj.12153
Macky, K., & Johnson, G. (2000). The Strategic Management of Human Resources in New Zealand. Auckland . Irwin/McGraw-Hill.
Matt, C., Hess, T., & Benlian, A. (2015). Digital Transformation Strategies. Business & Information Systems Engineering, 57, 339-343. https://doi.org/10.1007/s12599-015-0401-5
Mazzone, D. M. (2014). Digital or Death: Digital Transformation: The Only Choice for Business to Survive. Smashbox Consulting Inc .
Melnyk, S. A., Bititci, U., Platts, K., Tobias, J. & Andersen, B. (2014). Is Performance Measurement and Management Fit for the Future? Management Accounting Research , 25, 173-186. https://doi.org/10.1016/j.mar.2013.07.007
Nasiri, M. (2021). Performance Management in Digital Transformation: A Sustainability Performance Approach. LUT University Press.
Nudurupati, S. S., Tebboune, S., & Hardman, J. (2016). Contemporary Performance Measurement and Management (PMM) in Digital Economies. Production Planning & Control , 27, 226-235. https://doi.org/10.1080/09537287.2015.1092611
Nuryanti, Samir, & Andreas, P. (2018). The Effect of Knowledge Management, Innovation and Learning Organization on Business Performance and Competitive Advantage on Small and Medium Enterprise Riau Food Products in Pekanbaru City. International Journal of Scientific & Technology Research, 7 , 260-267.
Pramanik, H. S., Kirtania, M., & Pani, A. K. (2019). The Essence of Digital Transformation—Manifestations at Large Financial Institutions from North America. Future Ge n eration Computer Systems , 95, 323-343. https://doi.org/10.1016/j.future.2018.12.003
Rahman, A., & Hossain, T. (2021). Social Networking Sites and Female Entrepreneurship: A Case Study of Dhaka, Bangladesh. Journal of Women’s Entrepreneurship and Educ a tion, 1, 25-40.
Rudman, R. (2003). Human Resource Management in New Zealand. Pearson Education New Zealand Limited.
Schalk, R., Timmerman, V., & Heuvel, S. V. D. (2013). How Strategic Considerations Influence Decision Making on e-HRM Applications. Human Resource Management Journal , 23, 84-92. https://doi.org/10.1016/j.hrmr.2012.06.008
Schrage, M., Kiron, D., Hancock, B., & Breschi, R. (2019). Management’s Digital Shift. MITsloan Management Review.
Schuler, R. S., & MacMillan, I. C. (1984). Gaining Competitive Advantage through Human Resource Management Practices. Human Resource Management Journal , 23, 241-255. https://doi.org/10.1002/hrm.3930230304
Searcy, C. (2012). Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda. Journal of Business Ethics , 107, 239-253. https://doi.org/10.1007/s10551-011-1038-z
Setia, P., Setia, P., Venkatesh, V., & Joglekar, S. (2013). Leveraging Digital Technologies: How Information Quality Leads to Localized Capabilities and Customer Service Performance. MIS Quarterly , 37, 565-590. https://doi.org/10.25300/MISQ/2013/37.2.11
Smith, J. Q., Jones, M. R., & Brown, C. D. (2020). Advancing Managerial Evolution and Resource Management in Contemporary Business Landscapes. Journal of Management Studies, 58, 1-25.
Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing Digital Innovation in Incumbent Firms: How Volvo Cars Managed Competing Concerns. MIS Quarterly , 41, 239-253. https://doi.org/10.25300/MISQ/2017/41.1.12
Tabassum, F., & Ghosh, G. (2019). Digital Performance Management System: How It Impacts Employee Engagement in Indian Retail Sector. EPRA International Journal of Economic and Business Review , 7 , 15-20
Tekic, Z., & Koroteev, D. (2019). From Disruptively Digital to Proudly Analog: A Holistic Typology of Digital Transformation Strategies. Business Horizons , 62, 683-693. https://doi.org/10.1016/j.bushor.2019.07.002
Vial, G. (2019). Understanding Digital Transformation: A Review and a Research Agenda. Journal of Strategic Information Systems , 28, 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
Wang, H. (2014). Theories for Competitive Advantage. In H. Hasan (Ed.), Being Practical with Theory: A Window into Business Research (pp. 33-43). THEORI. http://eurekaconnection.files.wordpress.com/2014/02/p-33-43-theories-of-competitive-advantage-theori-ebook_finaljan2014-v3.pdf
Westerman, G., Bonnet, D., & McAfee, A. (2014). The nine elements of digital transformation. MIT Sloan Management Review , 55 , 1-6.
Westerman, G., Calméjane, C., Bonnet, D., Ferraris, P., & McAfee, A. (2011). Digital Transformation: A Roadmap for Billion-Dollar Organizations . MIT Center for Digital Business and Capgemini Consulting.
Woodard, C. J., Ramasubbu, N., Tschang, F. T., & Sambamurthy, V. (2013). Design Capital and Design Moves: The Logic of Digital Business Strategy. MIS Quarterly , 37, 537-564. https://doi.org/10.25300/MISQ/2013/37.2.10
Yoo, Y. (2010). Computing in Everyday Life: A Call for Research on Experiential Computing. MIS Quarterly , 34, 213-231. https://doi.org/10.2307/20721425
Yoo, Y., Boland Jr., R. J., Lyytinen, K., & Majchrzak, A. (2012). Organizing for Innovation in the Digitized World. Organization Science, 23, 1213-1522. https://doi.org/10.1287/orsc.1120.0771
Zhang, Y. (2012). The Impact of Performance Management System on Employee Perfo r mance—Analysis with WERS 2004 . Master’s Thesis, University of Twente.