Abstract
This study explores the impact of digital transformation on firm performance from the perspective of paradox and organizational tension. Structural content analysis was used to investigate 62 listed companies in Taiwan and conduct quantitative analysis. The results found that the degree of digital transformation positively impacts both firms’ performance and organizational tension. Organizational tension hurts firms’ performance and negatively mediates the relationship between digital transformation and firms’ performance. In addition, from the perspective of dynamic capabilities, the ambidexterity (structural ambidexterity) of dynamic capabilities has a moderating effect on mitigating the negative impact of organizational tension on firms’ performance. The results help clarify the contradictory phenomena in the process of traditional companies promoting digital transformation and provide management suggestions for mitigating organizational conflict.