Digital transformation and new management and organizational modes: Impacts on companies’ financial performance

Abstract

Type of the article: Research Article AbstractDigitalization in conjunction with new management and organizational methods (NMMO) is a significant contributor to companies’ financial performance. However, there is a considerable gap in current empirical literature that investigates how these two characteristics contribute to financial performance. This paper aims to highlight the results of the combination of digital transformation, NMMO implementation, and financial performance in Moroccan SMEs. This study adopts a quantitative research design. Five hypotheses were examined through a regression analysis on a sample of 104 digitally transforming SMEs adopting NMMOs.Empirical evidence reveals that the use of new means of organizational management through digitalization, the use of digitalization in the management of financial resources, the use of digital tools for managing human resources, and the use of NMMO through remote work and empowering teams in SMEs have contributed enormously to their financial performance. However, the integration of digitalization with financial risk management has no significant contribution to financial performance. The study emphasizes the significant contribution of digital transformation combined with the adoption of NMMOs in advancing financial performance among Moroccan SMEs.