Search

Challenges and Coping Strategies for Organizational Culture Transformation in the Digital Economy Environment

Author(s)

Luke Sun*

Affiliation(s)

Baise University, Baise, Guangxi, China *Corresponding Author

Abstract

With the rapid development of the digital economy, the transformation of organizational culture has become a key factor for enterprises to cope with market changes and technological innovation. This study aims to explore the challenges faced by organizational culture transformation in the digital economy environment and propose corresponding coping strategies. Through literature review and theoretical analysis, the paper summarizes the impact of the digital economy on traditional organizational culture and identifies key challenges such as cultural inertia, employee adaptability, the integration of technology and culture, and the cognitive gap among management. Combining strategies like digital leadership and incremental transformation, the paper presents concrete proposals to effectively promote organizational culture transformation. The research results show that digital leadership and gradual cultural transformation strategies significantly enhance an enterprise’s ability to adapt to the digital economy environment. Finally, the paper emphasizes that when advancing organizational culture transformation, enterprises need to consider leadership, employee training, technological support, and cultural integration to ensure smooth transformation and enhance competitiveness.

Keywords

Digital Economy; Organizational Culture Transformation; Digital Leadership; Cultural Inertia; Incremental Transformation; Employee Adaptability

References

[1] Su, J., Su, K., & Wang, S. (2021). Does the digital economy promote industrial structural upgrading?—A test of mediating effects based on heterogeneous technological innovation. Sustainability, 13(18), 10105. [2] Joy, S. K., & Sharma, A. (n.d.). Evolution of organizational culture in the digital age. Evolution, 6(02). [3] Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. [4] Rovenskaya, E., Ivanov, A., Hathiari, S., Kotova, D., Scharler, U. M., & Boza, G. (2025). An ecological perspective to master the complexities of the digital economy. npj Complexity, 2(1), 16. [5] Vlasenko, T., Havrylchenko, O., & Lypovyi, D. (2023). Transformation of organisational culture in the context of business digitalisation. Baltic Journal of Economic Studies, 9(4), 79-87. [6] Putri, F. M. (2024). A comparative analysis of Indonesia and China on managing cultural diversity in multinational corporations. Open Access Library Journal, 11(3), 1-16. [7] Gong, J. (2025). The effects of distributed leadership on teaching innovation in Shanghai, China: The mediating roles of teacher autonomy, teacher collaboration, and teacher self-efficacy. Frontiers in Psychology, 16, 1562838. [8] Pham, V. K., Vu, T. N. Q., Phan, T. T., & Nguyen, N. A. (2024). The impact of organizational culture on employee performance: A case study at foreign-invested logistics service enterprises approaching sustainability development. Sustainability, 16(15), 6366. [9] Al Balushi, R. R. A., & Jamaludin, H. B. (2025). Leadership styles as a predictor of employee performance through the moderating role of organizational culture in Oman. WSEAS Transactions on Environment and Development, 21, 532-543. [10] Liaqat, M. M., & Ullah, H. A. (2024). The impact of transformational leadership and digital literacy on innovation capability: Mediating role of organizational culture for innovation. Gomal University Journal of Research, 40(2), 134-145. [11] Tadesse Bogale, A., & Debela, K. L. (2024). Organizational culture: A systematic review. Cogent Business & Management, 11(1), 2340129. [12] Smeulders, D., Dekker, H. C., & Van den Abbeele, A. (2023). Post-acquisition integration: Managing cultural differences and employee resistance using integration controls. Accounting, Organizations and Society, 107, 101427. [13] Sobocinska, M., & Sanak-Kosmowska, K. (2024). The role of organizational culture of enterprises in the process of the company digital transformation in the light of the results of semiotic analysis and case studies. Organization and Management, 196(2), 43-68. [14] Zhang, X., Xu, Y. Y., & Ma, L. (2023). Information technology investment and digital transformation: The roles of digital transformation strategy and top management. Business Process Management Journal, 29(2), 528-549. [15] Taherizadeh, A., & Beaudry, C. (2023). An emergent grounded theory of AI-driven digital transformation: Canadian SMEs’ perspectives. Industry and Innovation, 30(9), 1244-1273. [16] Fangfang, S., & Tat, H. H. (2025). Exploring the innovative path of enterprise human resource management from the perspective of digital economy. Journal of Business and Economic Research, 1(1), 17-25.