Digital transformation, digital organisational culture and business model innovation: evidence from trade, service and manufacturing firms in Greece

Purpose Despite the growing number of firms undertaking digital transformation, there is still a limited understanding of how to realise business value, and many fail to implement it effectively. This study examines the interplay of digital organisational culture, digital transformation and business model innovation. Design/methodology/approach A quantitative research approach was employed, drawing on data from a representative survey of 250 firms across Greece’s trade, services and manufacturing sectors. Partial least squares structural equation modelling (PLS-SEM) was implemented to test the hypothesized relationships. Findings The study finds a strong positive effect of digital organisational culture on digital transformation. Additionally, digital transformation significantly influences business model innovation and fully mediates the relationship between digital organisational culture and business model innovation. Practical implications The study offers actionable insights for practitioners on how a proper digital culture (as an organisational requirement) and digital transformation practices can drive innovation in value creation, proposition and capture across trade, service and manufacturing firms. Additionally, the manuscript discusses the role of artificial intelligence (AI) as a core enabling technology that organisations increasingly adopt to drive and support digital transformation initiatives. Originality/value Literature on digital transformation concentrates on economic performance rather than innovation-driven outcomes, focusing on technology while overlooking the role of digital culture, which is key in overcoming resistance. This paper presents a novel model and empirical evidence from Greece, a Mediterranean country characterised by economic and resource constraints. It also offers sector-specific implications to support firms in maximising the value of digital investments and avoiding technological failures, which is crucial considering the urgency of artificial intelligence (AI).