The Moderating Role of Market Turbulence Between the Relationship of Digital Transformation, Intellectual Capital, and Economic Performance

Abstract

This current study investigates the moderating role of market turbulence in the relationship between digital transformation, intellectual capital, and economic performance. As businesses gradually implement digital technologies, sympathetic how these factors interact is critical for sustaining competitive advantage. Digital transformation (DT) and intellectual capital (IC) are known as key drivers of upgraded economic performance (EP), yet the effects of these relationships may be influenced by external market dynamics. Market turbulence, considered by hasty shifts in customer preferences, technological innovations, and competitive pressures, is hypothesized to moderate these relationships. Using a quantitative approach, data from a cross-sectional sample of organizations across various industries is analyzed. The results show that while both digital transformation and intellectual capital positively impact economic performance, market turbulence amplifies the effects of digital transformation and moderates the influence of intellectual capital.

Keywords: Market Turbulence, Digital Transformation, Intellectual Capital