Digital Transformation and Organizational Performance: A Case Study of the Taiwanese Textile Industry
Abstract
Digital transformation involves the strategic integration of advanced digital technologies such as artificial intelligence, the Internet of Things, and data analytics to improve organizational processes and value creation. It enhances operational efficiency, supply chain agility, and innovation, enabling firms to respond quickly to market changes and improve competitiveness. Organizations that successfully adopt digital transformation often achieve better financial performance, customer satisfaction, and long-term resilience in dynamic business environments. The study found that Taiwanese textile firms adopting digital technologies such as IoT-enabled machinery, predictive analytics, and integrated supply chain platforms achieved significant gains in operational efficiency, cost reduction, and production agility. Digital tools also enabled product and market innovation, including customized fabrics, functional textiles, and blockchain-based traceability, which strengthened competitiveness and attracted global buyers seeking sustainable and transparent supply chains. The study concluded that digital transformation significantly improves the operational efficiency, innovation capacity, and global competitiveness of Taiwanese textile firms, especially those that align technology with strategic goals and invest in workforce readiness. However, small and medium-sized enterprises continue to face barriers such as high costs, legacy system integration challenges, and limited digital talent, creating uneven progress and the risk of widening performance gaps within the industry. The study recommended that Taiwanese textile firms create clear digital transformation roadmaps, invest in workforce training, and build innovative, data-driven cultures while adopting scalable technologies such as IoT-enabled systems and integrated ERP platforms. Government agencies, industry associations, and technology providers should collaborate to offer financial incentives, shared digital infrastructure, and targeted skill development programs to help small and medium-sized enterprises overcome adoption barriers and remain competitive.
Keywords: Digital Transformation, Organizational Performance, Taiwanese
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