Effect of Digital Transformation on Organisational Performance in Public Higher Educational Institutions

ABSTRACT This study examined the effect of digital transformation on organisational performance in public higher educational institutions. The study adopted a descriptive survey research design guided by a quantitative, deductive, and positivist approach. The population comprised academic and administrative staff from selected public higher educational institutions, from which a sample size was determined using the Taro Yamane (1967) formula at a 5% level of precision. Data were collected using a structured closed-ended questionnaire and analysed using descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM). The measurement model results confirmed satisfactory reliability and convergent validity, with factor loadings ranging from 0.802 to 0.862, Cronbach's Alpha values from 0.876 to 0.901, Composite Reliability values from 0.910 to 0.927, and Average Variance Extracted (AVE) values from 0.670 to 0.718. The structural model revealed that digital transformation dimensions explained 72.8% of the variance in organisational performance (R² = 0.728; Q² = 0.511). The findings showed that digital infrastructure adoption had a positive but statistically insignificant effect on organisational performance (β = 0.087, t = 1.421, p = 0.156), while digital technology integration also had a positive but insignificant effect (β = 0.113, t = 1.884, p = 0.063). However, digital skills and competence (β = 0.326, t = 5.768, p < 0.01) and digital innovation capability (β = 0.401, t = 7.214, p < 0.001) had significant positive effects on organisational performance. The study concluded that digital transformation enhances organisational performance in public higher educational institutions, particularly when supported by strong digital competencies and innovation capabilities. The study recommended improved digital infrastructure, continuous staff digital training, effective technology integration strategies, and institutional support for digital innovation. Keywords: digital transformation, digital infrastructure adoption, digital technology integration, digital skills and competence, digital innovation capability, organisational performance