Linking Digital Transformation to Organizational Performance Through Strategic Management in Indonesian Construction Companies

DOI

10.2991/978-94-6239-709-5_156How to use a DOI?

Keywords

Digital transformation; strategic management; organizational performance; mediation; Indonesian construction companies

Abstract

Digital transformation has become a pivotal driver for the construction industry, requiring continuous improvements in productivity, efficiency, and competitiveness in the disruptive era. This study investigates the relationship between digital transformation and organizational performance, with a particular focus on the mediating role of strategic management in Indonesian construction companies. A quantitative design was applied in three construction firms located in Makassar, involving 60 purposively selected managerial and staff respondents. Data were collected through a Likert-scale questionnaire and analyzed using multiple linear regression and the Sobel mediation test. Validity and reliability results confirmed that all instruments met statistical thresholds (CFA loading factor ≥ 0.50; Cronbach’s α ≥ 0.70). Regression analysis demonstrated that digital transformation has a significant positive impact on organizational performance (β = 0.52; p < 0.01), while strategic management also exerts a significant positive effect (β = 0.41; p < 0.01). Moreover, mediation analysis revealed a significant indirect effect of digital transformation on performance through strategic management (β = 0.23; p < 0.05). These findings highlight the novelty of positioning strategic management as a critical mechanism for translating digital investments into sustainable performance. The study contributes to enriching the digital business strategy literature in developing economies, while providing practical guidance for construction managers in Indonesia to design measurable digital roadmaps and adaptive strategic governance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Farmady Hadianto
PY  - 2026
DA  - 2026/06/20
TI  - Linking Digital Transformation to Organizational Performance Through Strategic Management in Indonesian Construction Companies
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 2243
EP  - 2253
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_156
DO  - 10.2991/978-94-6239-709-5_156
ID  - Hadianto2026
ER  -