Digital Transformation, HR Upskilling, and Digital Performance: The Moderating Role of Individual Readiness

Gede Suardana; Made Setini; Sukmawati Sukmawati; Ahmad Soleh; I Dewa Nyoman Arta Jiwa

doi:10.32535/ijabim.v11i2.4523

Digital Transformation, HR Upskilling, and Digital Performance: The Moderating Role of Individual Readiness

Gede Suardana, Made Setini, Sukmawati Sukmawati, Ahmad Soleh, I Dewa Nyoman Arta Jiwa

Abstract

Digital transformation has become essential for competitiveness; however, its effectiveness depends on employees' digital competencies and readiness for change. This study examines the effects of digital transformation and HR upskilling on employees' digital performance and investigates the moderating role of individual readiness in the hospitality industry in Bali, Indonesia. A quantitative explanatory approach was employed using survey data collected from 200 hospitality employees. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that digital transformation significantly improves digital performance (b = 0.412, p < 0.001), while HR upskilling also has a positive and significant effect (b = 0.356, p < 0.001). Furthermore, individual readiness strengthens the relationship between digital transformation and digital performance (b = 0.167, p = 0.009) as well as the relationship between HR upskilling and digital performance (b = 0.142, p = 0.035). These findings highlight that technological investment should be accompanied by continuous competency development and employee readiness to maximize digital performance, while offering theoretical and managerial insights for effective digital transformation strategies in hospitality organizations.

Keywords

Digital Performance; Digital Transformation; Hospitality Industry; HR Upskilling; Individual Readiness

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DOI: https://doi.org/10.32535/ijabim.v11i2.4523