The double-edged sword impact of companies’ digital transformation on employee counterproductive work behavior

Purpose The rapid proliferation of digital transformation has led to a surge in discussions about its impact on employee counterproductive work behavior (CWB). Despite its significance, the specific mechanisms through which digital transformation influences employee CWB remain under-explored. This study aims to address this gap by examining the dual-path framework of the effects of digital transformation on employee CWB, with the mediating roles of focus at work and anxiety and the moderating role of digital literacy. Design/methodology/approach This study is based on three-wave data collected from 390 participants across various industries in China. A dual-path model was proposed to link digital transformation with employee CWB, incorporating the mediating effects of work focus and anxiety and the moderating influence of digital literacy. The model was tested using structural equation modeling. Findings This study confirms the mediating roles of focus at work and anxiety in the relationship between digital transformation and employee CWB. Digital transformation positively influences work focus, which, in turn, negatively affects CWB. Conversely, digital transformation also positively predicts work anxiety, leading to higher levels of CWB. Additionally, the study reveals that digital literacy moderates the relationship between digital transformation and focus at work, as well as anxiety. Specifically, the positive relationship between digital transformation and work focus is stronger when digital literacy is higher, while the positive relationship between digital transformation and work anxiety is weaker with increased digital literacy. Originality/value This study pioneers the exploration of digital transformation’s dual-edged sword impact on employee CWB by integrating the stressor-emotion model with digital literacy. It offers empirical evidence of the complex interplay between digital transformation, work focus, work anxiety and digital literacy, enriching the understanding of the emotional underpinnings of employee behavior in the digital age. The findings emphasize the moderating role of digital literacy in the relationship between digital transformation and employee outcomes, providing actionable insights for organizations navigating the digital landscape.