Mixed-methods analysis reveals that adaptive organizations excel in talent retention and innovation capacity, indicating dual transformation benefits.
This study examines the convergence of two transformative forces reshaping organizational landscapes: COVID-19's enduring impact on work arrangements and the technological advancements of Industry 4.0/5.0. Using a mixed-methods approach combining a systematic literature review (n=87 studies), global survey data (n=2,347 HR professionals from 1,876 unique organizations), and comparative case analyses (n=12 organizations), this research develops and empirically validates the concept of "dual transformation capability" (DTC)—an organization's capacity to simultaneously adapt to spatial work flexibility and technological advancement. Drawing on institutional theory and dynamic capabilities perspectives, the study identifies four strategic postures organizations adopt in response to these parallel disruptions and demonstrates that those pursuing integrated transformation with strong DTC are associated with superior outcomes in talent retention (β=0.42, p<0.001, ΔR²=0.16), innovation capacity (β=0.38, p<0.001, ΔR²=0.14), and financial performance (β=0.29, p<0.01, ΔR²=0.08). Beyond identifying macro-organizational patterns, the research illuminates the micro-foundations of DTC, highlighting how leadership approaches, structural mechanisms, and cultural elements combine to create organization-wide capabilities. The study also addresses critical ethical dimensions of dual transformation, including equity concerns, surveillance issues, and power dynamics. Five theoretical propositions guide future research, while a diagnostic framework offers practitioners concrete guidance for navigating these complex transformations across different institutional contexts.
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Jonathan Westover (2025) studied this question.
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