Influence of Digital Transformation, Financial Strategies, and Project Management on Organizational Performance: The Mediating Role of Process Optimization

Abstract

This study analyzes the effect of digital transformation, financial strategy, and project management on organizational performance, with process optimization as a mediating variable. The primary objective of this research is to examine the role of these strategic initiatives in enhancing organizational performance, with a particular focus on emerging economies. A quantitative research approach was employed to collect data from 250 organizations in Pakistan using a structured survey. Data were analyzed, and relationships among the variables were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that digital transformation, financial strategy, and project management positively influence process optimization, which, in turn, significantly impacts organizational performance. Additionally, process optimization plays a crucial mediating role between these strategic factors and organizational performance. This suggests that while digital transformation, financial strategies, and project management are essential, their full potential can only be realized through effective process optimization within the organization.  Therefore, this study provides valuable insights for managers and decision-makers aiming to improve organizational operational efficiency and overall success. Furthermore, these findings contribute to the existing literature on process optimization and strategic management, offering practical recommendations for organizations to enhance their performance.