Why do Employees (not) Support Enterprise Digital Transformation? A Transactional Theory of Stress Perspective

Employee support is a vital component for enterprise digital transformation, and a clearer understanding of its mechanism is crucial to the success of such transformation. Drawing upon the transactional theory of stress, we examine why employees (not) support enterprise digital transformation. A field study of 121 employees in a company undergoing digital transformation demonstrates that challenge and hindrance appraisals are two countervailing mechanisms that mediate the relationship between enterprise digital transformation and employee digital transformation support. The results further show that employees’ regulatory foci moderate the indirect effect of enterprise digital transformation on employee digital transformation support through their challenge or hindrance appraisal of the digital transformation. Specifically, employees with a higher promotion (prevention) focus are more likely to engage in challenge (hindrance) appraisal and support (not support) enterprise digital transformation. Our research has theoretical and managerial implications for employee management for enterprise digital transformation.