Digital Transformation and Firm Performance: Empirical Evidence from MENA Listed Companies
DOI:
https://doi.org/10.51325/e6mmbg11Keywords:
Digital Transformation, Firm Performance, MENA, Emerging Markets, Digital Innovation, Technology AdoptionAbstract
This research analyzes the link between the level of digital transformation (DT) and company performance from the perspective of various companies listed on the stock exchanges of countries in the Middle East and North Africa (MENA) region. Digital transformation has been generally understood as a strategic undertaking designed to combine digital technology and traditional business practices to elevate company performance, but there are limited empirical studies in the emerging markets of MENA. The research obtains extensive primary survey data from the 186 senior managers and C-level executives employed by the MENA-based listed companies between October 2023 and March 2024, based on which the research defines DT intensity across four dimensions: cloud services usage, capabilities of data analysis and insights, maturity of digital customer engagement, and depth of internal automation. Company performance is analyzed in three dimensions: ROA, revenue growth, and overall operational efficiency index. The results coming from OLS regression with robust standard errors and moderation model analysis reveal that DT intensity correlates positively with all three indicators of performance. Another conclusion is that the culture of innovation in the company and the level of digital competence of leaders are positive moderators in the relationship between DT and performance. It is important to note that company size is a negative moderator of the relationship between DT and ROA, which confirms the assumption about the preference for small companies in MENA. Overall, the findings of this research add to the existing literature on digital transformation in developing economies and provide useful advice for MENA leaders in their efforts to compete in the environment driven by technology.
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Copyright (c) 2026 Nadia Mansour (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
