Exploring the Influence of Digital Transformation on Employee Job Satisfaction: A Qualitative Analysis within a Malaysian Multinational Electricity Firm

Abstract

Objectives of the Study – Digital transformation, characterized by disruptive innovation, entails the optimization and automation of comprehensive processes aligned with long-term organizational objectives. This transformation involves the integration of technologies such as business process management, Artificial Intelligence (AI), Natural Language Processing (NLP), and Robotic Process Automation (RPA). These technologies modernize operations by automating transactions, improving operational precision, and enabling employees to engage in complex strategic endeavors. The introduction of digital platforms has a direct impact on job parameters, including schedules, workload, complexity, and allocation, thereby influencing job satisfaction. Employee satisfaction encompasses contentment with work quality, work-life equilibrium, performance management, job distribution, and skill development. Evaluating digital transformation's effect on employee job satisfaction is imperative, given its daily impact on employees. Research on the direct influence of digital transformation on internal employee job satisfaction is limited.

This study aims to address the prevalent issue faced by Chief Procurement Officers and their teams regarding the direct impact of digital transformation on employee job satisfaction within the domains of procurement and sourcing processes. The primary research question posited is, "What is the influence of Digital Transformation on the Employee Job Satisfaction Index within sourcing, procurement, and tender management domains?" To answer this inquiry, a qualitative investigation was conducted within the Procurement division of a Malaysian Energy and Utility organization. Procurement management occupies a critical role in the organizational structure, ensuring the seamless operation of vital systems. This research confronts existing challenges, scrutinizes process deficiencies, and assesses the potential for enhancing job satisfaction among Sourcing and Category Managers. This assessment hinges on the utilization of Digital Technologies, encompassing Business Process Management, Robotic Process Automation, and Natural Language Processing, within the distinctive context of a Malaysian Multinational Electricity and Utility Company, which serves as the case study organization.

Methodology– This research employs a qualitative research methodology to delve into the impact of digitalized processes on employee job satisfaction. To gather primary data, purposeful sampling is utilized, focusing on selecting homogeneous case samples from specific procurement offices where digital transformation initiatives have been implemented. These samples are chosen based on their similarities in terms of factors such as work experience, age, income level, and work area. Subsequently, informal telephonic interviews are conducted with these selected employees using the MS-Teams platform. The research takes a single-organization case study approach, which involves conducting comprehensive and in-depth interviews with experienced and knowledgeable stakeholders within the Malaysian Case-Organization. To analyze the collected data, the study utilizes NVivo, a qualitative analysis software tool. This NVivo-based analysis involves code-based thematic analysis and sentiment synthesis, adding depth and rigor to the overall analytical process. In addition to primary data collection, the research also involves secondary data gathering. This includes an extensive review of existing literature, encompassing research papers, conference papers, book chapters, analyst reports, IT survey reports, and industry survey reports, which are publicly available on digital web platforms. Furthermore, specific secondary data related to the Malaysian Case-Organization is extracted from program documentation, case success stories, quick wins, and automation training materials associated with the digitalization initiatives within the organization. This comprehensive approach ensures a well-rounded and thorough investigation into the research topic.

Key Results/Findings: The study's results, obtained through unstructured open interviews and subsequent secondary analysis, underscore the significant importance of digital transformation as perceived by internal stakeholders and its impact on employee well-being. The research establishes that digital transformation initiatives have a clear positive effect on employee satisfaction and individual job performance. Notably, these initiatives effectively reduce manual errors, enabling employees to focus on complex strategic tasks. Moreover, digital transformation leads to cost savings and the potential transition of job roles from operational to strategic, lean, and adaptable, thereby enhancing overall job satisfaction. This aspect is often overlooked in favor of metrics emphasizing cost reduction, customer satisfaction, and operational efficiency in the context of digital transformation. The findings offer valuable guidance to senior management, prompting a focus on digitalization and automation efforts while considering internal human resource and leadership perspectives. This assessment evaluates the impact of digital transformation on aspects such as work allocation, job rotation, work-life balance, work quality, and performance management.

Discussions: The assessment of digital transformation's success in procurement and sourcing processes should extend beyond operational and financial considerations to encompass employee job satisfaction. While the tactical and cost-focused strategic benefits of digitalizing procurement processes have received extensive attention in literature, there is comparatively less understanding of the long-term impact and relationship between procurement process automation and employee job satisfaction. Typically, research objectives and aims predominantly revolve around customer satisfaction indices, partner satisfaction indices, turnaround times, or financial Key Performance Indicators (KPIs), with relatively rare exploration from the viewpoint of internal employees and stakeholders. This research seeks to address this gap, focusing on the perspective of the internal resources within the purchasing organization (specifically the Malaysian Case-Organization). Importantly, digital transformation has a direct influence in reducing manual errors and enables employees to engage in more complex, strategic, and intellectually stimulating tasks. It holds the potential to yield substantial cost savings and offers the opportunity to transition job roles from operational to more strategic, streamlined, and adaptable roles, thereby enhancing overall job satisfaction. Research in this domain underscores the potential for digital transformation to drive cost savings and facilitate the transformation of job roles toward more strategic, lean, and flexible functions, consequently bolstering overall job satisfaction.

Implications: The research findings are poised to offer valuable insights to senior management, prompting a focused approach towards digitalization and automation endeavors, with a keen eye on internal human resource and leadership considerations. The aim is to harness the benefits of these initiatives in terms of efficient work allocation, improved job rotation, enhanced work-life balance, elevated work quality, and proficient performance delivery through proper training and skill management. Furthermore, the outcomes of this research are targeted at assisting the Chief Procurement Officer (CPO) office and the HR team in evaluating the additional value contributions that digital transformation initiatives can offer in the domains of Procurement and Sourcing, specifically from the perspective of employee job satisfaction. It is important to underscore that digital transformation initiatives have the potential to yield a discernible positive impact on employee satisfaction and individual job performance. However, the inclusion of resource engagement and satisfaction analysis often remains absent in the planning models for business process digitalization. For a successful digital implementation, it is crucial to assign the respective activities and responsibilities to the appropriate groups of employees, thereby enabling them to enhance process quality while simultaneously bolstering employee job satisfaction. This research recognizes a direct correlation between an organization's capacity to surmount digitalization challenges, improved job satisfaction, role suitability, and overall organizational performance, which can be evaluated in terms of both process efficiencies and organizational capabilities. Digital technologies and modernization serve not only to support and facilitate process harmonization but also contribute to the more optimal alignment and utilization of human resources.