The Role of Digital Transformation Speed in Enhancing Productivity: A Mediated Framework with Operational Efficiency in Financial Shared Service

Abstract

This conceptual paper examines the impact of digital transformation speed on Total Factor Productivity (TFP), with operational efficiency as a mediator, within the context of Financial Shared Services (FSS). Drawing on Dynamic Capabilities Theory and the Resource-Based View (RBV), this study highlights the critical role of transformation speed in enhancing productivity while emphasizing the importance of operational efficiency as a pathway to achieving these gains. The proposed framework provides theoretical advancements by addressing the underexplored temporal dimension of digital transformation and its nuanced effects on productivity outcomes. Practically, it offers actionable insights for organizations seeking to balance the urgency of transformation with operational readiness to ensure sustainable productivity improvements. The framework situates FSS as a valuable context, illustrating how centralized financial operations amplify the benefits of rapid digital transformation. As a conceptual study, this paper acknowledges limitations related to empirical validation and encourages future research to test the framework across diverse industries and organizational contexts. By bridging gaps in literature and offering practical guidance, this study advances the understanding of digital transformation’s strategic and operational implications.