2. Uncertainty in the Age of Digital Transformation

Digital transformation (DX) exerts multifaceted influences on organizational members. To explore these complex dynamics, the studies reported in this chapter divvied the umbrella concept of DX into two subcategories (“digitization” and “digitalization”) and examined their impact on employee uncertainty and identities. Repercussions of the perceived vision clarity behind the given DX initiative and organizational support were also scrutinized. SEM analyses of the survey information collected in Japan (Ns = 689–1,139) have revealed that: (a) both digitization and digitalization are positively associated with employee uncertainty; (b) DX-driven uncertainty is, in turn, negatively associated with employees’ identification with their organization and professional roles; (c) digitization has positive direct effects on employees’ organization-based and work-based identities; (d) digitalization has negative direct and indirect effects on employees’ identities; and (e) these effects are moderated by the perceived clarity of vision behind DX and organizational support. Implications of these results, as well as the limitations of the studies and directions for future research, are discussed with reference to the literature on the related themes including but not limited to leadership, change management, training and empowerment, and organizational culture.