**11. The impact of digital transformation on organizational culture**

Digital transformation is a strategic requirement for enterprises in the modern era and it is defined as the integration of digital technologies into various organizational functions. While technology developments are frequently the center of attention in the context of digital transformation, organizational culture is also significantly impacted.

The common values, beliefs, customs, and behaviors that influence the workplace and direct employee behavior are referred to as organizational culture. Due to their significant impact on work processes, communication channels, decision-making, and employee roles and responsibilities, digital transformation efforts have the potential to disrupt and redefine corporate culture.

Within enterprises, digital transformation develops an innovative and adaptable culture. It urges staff members to try new things, take chances, and value lifelong learning [72]. Organizations can increase productivity, automate jobs, and streamline operations by implementing digital technologies. Organizations must foster a growth

mentality, promote cooperation, and offer resources for continual learning and development in order to keep up with this trend toward innovation and agility.

A more empowered and collaborative workplace culture is frequently the result of digital transformation. Between teams and departments, smooth communication, knowledge exchange, and cooperation are made possible through digital tools and platforms [73]. This change calls for a culture revolution in which networked and decentralized decision-making processes replace hierarchical ones. Employee participation in cross-functional collaborations, sharing of ideas, and sharing of expertise are all encouraged, establishing an inclusive and empowered work environment.

In order to successfully implement digital transformation, organizations must be agile and responsive to ongoing change. It calls into question established working practices, needs a culture that welcomes change and ambiguity, and motivates staff to actively look for new opportunities. The promotion of a culture that encourages experimenting, learning from mistakes, and embracing change as a driver of progress is crucially dependent on organizational leaders.

There are difficulties associated with how digital transformation affects company culture. Organizations may encounter cultural inertia entrenched in conventional working methods, reluctance to change, and fear of job displacement [74]. Effective change management techniques, transparent communication, and employee engagement are required to overcome these obstacles. To provide employees the digital skills they need to succeed in the new workplace, organizations must engage in training and upskilling initiatives.

The effects of digital transformation on organizational culture have broad-ranging repercussions. A supportive and flexible culture can boost worker satisfaction, draw in and keep top talent, encourage creativity and innovation, and boost organizational performance. On the other hand, a mismatch between organizational culture and digital transformation initiatives can result in resistance, disengagement, and eventually the failure of transformation attempts. Therefore, to achieve congruence with their aims for digital transformation, organizations must actively manage cultural change.

Digital transformation has a big impact on company culture and goes beyond just being a technological activity. A cultural shift inside businesses is required to accommodate the shift toward innovation, empowerment, collaboration, adaptation, and flexibility. Organizations may traverse the difficulties and take advantage of the opportunities brought by the digital era by identifying and resolving the influence of digital transformation on organizational culture. To create a culture that supports successful digital transformation, it is essential to utilize effective change management techniques, involve employees, and invest in the development of digital skills.
