The Effects of Environmental Scanning Capability, Employee Digital Competence, and Digital Governance on Organizational Adaptability in the Modern Retail Industry

Abstract

The aim of this study is to analyze the effect of Environmental Scanning Capability, Employee Digital Competence, and Digital Governance on Organizational Adaptability in the modern retail sector. A quantitative method was used in this research with survey technique on individuals who worked in contemporary retail organizations. Data collection was conducted using google form as an online questionnaire, while data analysis was conducted using multiple linear regression. The results show that the Environmental Scanning Capability, Employee Digital Competence and Digital Governance have good and substantial influence on the Organizational Adaptability. The results point to the importance of an organization’s capability to sense, interpret and exploit knowledge about environmental change as a key driver for improving organizational agility, underpinned by the digital competency of workers and effective digital governance. The results also point to the need for contemporary retail companies to improve the monitoring of their business environment, the digital skills of their human resources, and to develop effective digital governance mechanisms that facilitate quick, focused and harmonized decision-making and organizational change.