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07030248044CHAPTER ONE
INTRODUCTION
The service sector has grown in significance recently and currently contributes significantly to the gross domestic product (GDP) of the world economy (Masoud &Basahel, 2023). Given the available data, the service industry is expected to have substantial growth in the years to come (Grubel &Walker, 2019). Operating in unpredictable conditions is another ongoing difficulty faced by service industry companies.Thus, innovation and digital transformation are crucial for businesses to have a winning competitive strategy(Baradarani& Kilic, 2018).
The term "digital transformation" describes an organization's attempts to use digital technology to enhance its business models, operational procedures, and customer interactions(Guo & Lu, 2021; Ferreira et al., 2019). In an effort to gain a competitive edge, 92% of the worldwide industrial enterprises polled by Parametric Technology Corporation began their digital transformation journey (Parida et al., 2015). But, because digital transformation comes at a hefty cost, not many businesses are certain of its business benefits. Furthermore, there are no clear findings from the data that is currently available about how digital transformation affects organisational effectiveness.
The commercial benefits of digital technologies have gained widespread recognition in information systems (IS) research (Sia et al., 2016). Investment in the usage of digital technologies has been shown to be beneficial in enhancing organisational performance, including the operating and financial performance, according to a considerable body of study on information technology valuation(Zhai et al., 2022; Sturesson &Groth, 2018). According to Sturesson and Groth (2018), IS research has focused a lot of attention on the role that digital technologies play in facilitating internal business activities. New possibilities are being unlocked by the quickly developing digital technology.They foster innovation in company models, services, and products in addition to facilitating operations (Pekovic & Rolland, 2020). In this way, digital transformation is effective in increasing profitability by creating chances for value creation and business development in addition to optimising corporate processes. In contrast to earlier local adoption of digital technology, digital transformation entails rebuilding organisational structure, culture, vision, capabilities, and procedures(Guo & Xu, 2021). The benefits and costs of digital transformation differ significantly from those of traditional IT use, so the effects of digital transformation on organisational performance are still unknown. This means that the cost of digital transformation is no longer about the conventional investment in digital technologies, but rather about the cost of integration and management resulting from business and organisational transformation (Siqueira et al., 2020).
The majority of papers produced by industrial consulting firms contain findings about the connection between organisational success and digital transformation (Ferreira, Coelho & Moutinho, 2020). These organisations have conducted in-depth surveys to find out which operational and financial performance impacts are most important to businesses. However, they haven't provided much information regarding the theoretical underpinnings of how digital transformation influences organisationalperformance.There are no consistent findings since different surveys employ different samples and performance metrics. The majority of scholarly articles concentrate on how a particular digital technology affects the financial performance of businesses (Ortiz-Villajos, 2017). These studies examine how certain digital technologies facilitate changes in local organisations. However, a variety of digital technologies are driving the present digital transformation, which results in changes that affect the entire firm(Kim & Wood, 2020). Its benefits and costs far outweigh those of a single digital technology. It is therefore on this backdrop that the present study seeks to determine the digital transformation and its impact on organization performance: a case study of Edo State Internal Revenue Service (EIRS).
In recent years, businesses have increasingly turned to digital transformation as a means of increasing their performance and value. Sahu, Deng, and Mollah (2018) assert that digital transformation presents a plethora of advantages for organisations, including greater customer service, heightened customer collaboration, and optimisedorganisational operations. Additionally, it can lower the price of goods and services, giving businesses a competitive edge.Digital transformation may be difficult to accomplish, though. Ngwenya and Siam (2023) discovered a notable discrepancy between the prospective advantages of digital efforts and their effective execution.
While there has been a number of studies examining the impact of digital transformation on organizational performance (Jonathan, 2020; Osmundsen et al., 2018; Morakanyane et al., 2020; Rueckel et al., 2020; Zhang et al., 2022), there is still a paucity of knowledge regarding understanding the specific how digital transformation impacted on Organization performance in internal Revenue Service (EIRS) of Nigeria. The Edo State Internal Revenue Service (EIRS), as a government agency responsible for revenue collection and management in Edo State, Nigeria, faces unique challenges and opportunities. By embracing digital transformation, the EIRS can potentially improve its efficiency, enhance taxpayer experiences, and optimize revenue generation. It is on this background that the present study seeks to determine the impact of digital transformation on Organization performance in Edo state internal Revenue Service (EIRS), Nigeria.
The following questions will guide this study;
The main objective of this study will be to examine the digital transformation and its impact on organization performance: A case study of Edo State internal Revenue Service (EIRS), Nigeria. Specific objectives of the study will include;
1.5 Research Hypotheses
The following will be hypothesized in this study;
Hypothesis 1
H0: There is no significant impact of digital transformation on organization performance of Edo State Internal Revenue Service (EIRS), Nigeria
H1: There is a significant impact of digital transformation on organization performance of Edo State Internal Revenue Service (EIRS), Nigeria
Hypothesis 2
H0: There is no significant relationship between digital transformation and Organization performance in Edo State Internal Revenue Service (EIRS), Nigeria
H1: There is a significant relationship between digital transformation and Organization performance in Edo State Internal Revenue Service (EIRS), Nigeria
The findings of this study will Policymakers can gain valuable insights into the impact of digital transformation on revenue agencies as understanding how digital transformation influences organizational performance informs policy decisions related to technology adoption, resource allocation, and capacity building.
The findings of this study can guide the formulation of effective digital transformation policies for the EIRS and other government bodies.
The findings of this study can help researchers delve deeper into the nuanced effects of digital transformation within the EIRS context as investigating specific dimensions of performance (operational vs. financial) provides fertile ground for academic exploration.
In addition, the findings of this study will contribute to the literature on digital transformation in public sector organizations, allowing scholars to build upon existing knowledge and develop new theories.
The findings of this study will further help students studying business, management, or public administration can learn from the EIRS case study as they gain practical insights into how digital transformation initiatives impact revenue collection, service delivery, and overall efficiency.
It will also help practitioners working in revenue agencies can apply lessons learned from this research as implementing successful digital transformation strategies can enhance their organization’s performance and adaptability.
1.7 Scope of the Study
This study will be limited to digital transformation and its impact on organization performance: A case study of Edo State internal Revenue Service (EIRS), Nigeria. Participants for this study will be limited to employees work in the Edo State Internal Revenue Service (EIRS).
Digital: Digital refers to various aspects related to electronic devices, technology, or methods based on electronics or computers.
Transformation: Transformation refers to a marked change in form, nature, appearance, or character. It involves a process of altering something from its original state to a different state.
Digital Transformation:Digital transformation refers to the integration of digital technology into all aspects of a business, fundamentally changing how the organization operates and delivers value to customers. It encompasses both technological shifts and cultural changes, requiring continual adaptation, experimentation, and a willingness to challenge the status quo.
Organizational Performance:Organizational performance refers to how well an organization is doing and how much of its daily tasks and set objectives it successfully completes. It involves analyzing a company’s actual outputs or results in comparison to its intended ones.
Internal Revenue Service:The Internal Revenue Service (IRS) is the Edo State government agency responsible for collecting state taxes and enforcing tax laws.
This study will be made up of five chapters. Chapter one consisted of background of the study, statement of the problem, research questions, objectives of the study, research hypotheses, significance of the study, scope of the study, limitation of the study, operational definition of terms and organization of the study.Chapter two which is literature review and the theoretical framework consisted of conceptual review, empirical review, theoretical review and organization context of the study. Chapter which is methodology consisted of research design, methods of Data Collection, Population of the Study, Sample Size, Sampling Technique, Research Instruments, Validity and Reliability of the Research Instruments and Methods of Data Analysis. Chapter four consisted of result and interpretation findings while chapter five consisted of summary, conclusion and recommendations of study.
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