The Effect of Digitization on Organizational Performance: Mediating Role of Workflow Efficiency in Selected Grade 1 Contractor Companies.
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Date
2025-06-07
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A.A.U
Abstract
This study investigates the effect of digitization on organizational performance, focusing on the
mediating role of workflow efficiency in selected Grade 1 contractor companies. Utilizing both
descriptive and explanatory research designs, the study explores characteristics and causal
relationships between variables. A mixed-methods approach was employed, combining qualitative
and quantitative techniques. Qualitative data were collected through surveys, questionnaires, and
key informant interviews, while quantitative data were analyzed statistically. The target
population comprised 18,518 employees from eighteen Grade 1 contractor companies, with a
sample size of approximately 392 determined using Yamane's formula. Stratified and simple
random sampling techniques were applied to ensure representative data, enhancing precision and
reducing bias. Our study gathered insights from both primary data (surveys and interviews) and
secondary data (existing documents) to analyze the impact of digitization. We used both
descriptive and inferential methods, including multiple linear regressions, to examine the
relationships between key variables. Our analysis identified that digitization was highly correlated
with organizational performance improvement, pointing to a transformational role of digital
initiatives. We found that training employees had an important and significant relationship with
the performance achieved, consequently showing importance in maximizing the value of digital
tools. Management support showed a meaningful correlation, which emphasized the role of
leadership in digital transformation. We identified workflow efficiency as a critical mediator of
this relationship. These results thus indicate a need for a balanced approach across these to ensure
long-run success. We would thus advise the management that they should first invest on the digital
equipment as well as employee capabilities while encouraging effective management support at
the same time. The companies should also involve regular technological infrastructure and
training programs assessment for best performance in today's dynamic construction industry
within Addis Ababa.