Many organizations embrace digital technologies to drive changes in enterprise business models and ecosystems that will not only enable them to weather the increasing environmental dynamics but also thrive on it. However, numerous internal and external factors have caused very few of them to continue their digital transformations in the right direction. For the rest, the journey to digital transformation have not resulted with businesses achieving complete value of a digitally-enabled change. Likewise, most Malaysian companies who have invested significantly in their digital endeavor have obtained very basic levels of return on their investments. This research examines the effects of governance on digital transformation by scrutinizing the implementation of e-CRM system at a Malaysian petrochemicals company. An exploratory study was initiated by interviewing key people at the company, leading to the adaptation of a survey questionnaire. Data was collected from 295 employees at various levels of management. Correlation analyses were carried out based on the parametric data. Governance was found to be significantly affecting digital transformation awareness, implementation and quality. Such findings demonstrate the importance of governance for supporting strategic decision making to deploy digital transformation in the manufacturing sector of an emerging economy.

Digital Transformation, Governance, Culture