Modeling the dynamics of digital transformation in social enterprises using an ISM-MICMAC approach in the GCC region

Abstract

This research investigates the organizational-level enabling and challenging factors affecting the digital transformation of social enterprises in the Kingdom of Bahrain and the State of Kuwait, two member states of the Gulf Cooperation Council (GCC), highlighting the importance of digital technologies in enhancing operational efficiency, social impact, and sustainability within the sector. Employing a qualitative methodology, this study conducts semi-structured interviews with 20 managers and top employees from various social enterprises across both countries. Thematic analysis of the interview data shows 26 factors that influence the digital transformation of social enterprises. Furthermore, 12 professional experts from different sectors engaged in a Delphi analysis and identified the 14 most influential factors that impact the digital transformation of social enterprises. Using the Interpretive Structural Modeling (ISM) technique, the research uniquely constructs hierarchical relationships among the most influential factors influencing the digital transformation. Four drivers were identified in the ISM hierarchy: technology readiness, strategic vision & planning, digital and adaptive leadership, and collaborative ecosystem. The research also employs Cross-Impact Matrix Multiplication Applied to Classification (MICMAC) analysis to segregate these factors into four quadrants: Autonomous, Independent, Linkage and Dependent. This research creates a conceptual framework that guides social enterprises in implementing effective digital transformation strategies. It ultimately provides actionable recommendations for stakeholders to enhance their digital capabilities and increase social impact.