Workforce Agility and Digital Transformation in the Public Sector

The rapidly changing technological, economic, and political landscapes have become a defining characteristic of this era. Organisations across sectors and industries are embarking on digital transformation to navigate through this dynamic environment. However, the success of digital transformation depends on dynamic capability—the ability to integrate, adapt and reconfigure internal and external capabilities to meet the demands of the dynamic environment. One of these capabilities is workforce agility—the ability of the workforce to foresee and respond to significant internal and external changes. Workforce agility is one of the imperative capabilities that can determine digital transformation success. However, the relationship between the two constructs is rarely studied, particularly in the public sector. Recognising the differences between organisations in the private and public sectors, this study investigates the significance of workforce agility for digital transformation in public organisations. The study also aims to test the moderating effect of transformational leadership on the influence of (1) workforce agility on digital transformation and (2) organisational structure on digital transformation. The theoretical model developed based on the extant literature will be tested using quantitative data collected in three municipalities in Sweden. Partial Lease Square Structural Equation Modelling (PLS-SEM) will be used for data analysis. Expected results and contributions are briefly discussed.