Analysis of Employee Readiness to Strengthen the Success of Digital Transformation in Public Institutions
Abstract
This study aims to analyze employee readiness in supporting the successful implementation of digital transformation at the Directorate General of Taxes (DGT). Using a qualitative approach, this research utilizes questionnaires and Focus Group Discussions so as to gain a more detailed perspective. The findings show that although employees show a high level of awareness and motivation, there are still gaps in understanding the implications of the transformation on daily tasks, especially for those with less experience. The complexity of the new system and existing communication challenges highlighted areas for improvement in training and reinforcement strategies. The research concludes that addressing these readiness gaps through targeted interventions, such as enhanced training and clear communication, is critical to sustaining employee engagement and achieving the desired transformation outcomes. This research provides actionable insights for public institutions that are undertaking digital transformation efforts.
Keywords: Change Readiness; Digital Transformation; Public Sector; ADKAR.
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References
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Armenakis, A. A., & Harris, S. G. (2017). Reflections: Our journey in organizational change research and practice. Journal of Change Management, 17(2), 84–107. https://doi.org/10.1080/14697017.2017.1299370
Boukamel, O., & Emery, Y. (2021). Public sector innovation through collaboration: A multi-stakeholder perspective. Public Management Review, 23(4), 521–546. https://doi.org/10.1080/14719037.2020.1810244
Fernandez, S., & Rainey, H. G. (2021). Managing successful organizational change in the public sector. Public Administration Review, 81(3), 435–444. https://doi.org/10.1111/puar.13202
Hiatt, J. M. (2006). ADKAR: A model for change in business, government and our community. Prosci Learning Center Publications.
Oreg, S., Bartunek, J. M., Lee, G., & Do, B. (2020). An affect-based model of recipients’ responses to organizational change events. Academy of Management Review, 45(2), 210–234. https://doi.org/10.5465/amr.2016.0289
Prosci. (2020). The role of change management in digital transformation. Retrieved from https://www.prosci.com
Prosci. (2022). ADKAR and its application in public sector change initiatives. Retrieved from https://www.prosci.com
Singh, S., Kumar, R., & Khurana, S. (2020). Exploring the role of employee readiness in organizational change management. Change Management Review, 19(1), 44–58.
Wirtz, B. W., Weyerer, J. C., & Geyer, C. (2022). Artificial intelligence and the public sector—Applications and challenges. International Journal of Public Administration, 45(3), 214–226. https://doi.org/10.1080/01900692.2021.1978683
Yildiz, M., Bailey, M., & Zhang, Y. (2021). Training and adaptability in public sector digital transformations. Government Information Quarterly, 38(4), 101587. https://doi.org/10.1016/j.giq.2021.101587
Al-Qahtani, B. J. (2010). Improving Safety Behavior Using Adkar Model. In All Days. https://doi.org/10.2118/136500-ms
Go, D. S., Kearney, M., Robinson, S., & Thierfelder, K. (2005). An Analysis Of South Africa’s Value Added Tax. In World Bank policy research working paper. https://doi.org/10.1596/1813-9450-3671
Iverson, T., & Barbier, E. B. (2021). National and Sub-National Social Distancing Responses to COVID-19. In Economies (Vol. 9, Issue 2, p. 69). Multidisciplinary Digital Publishing Institute. https://doi.org/10.3390/economies9020069
Joshi, A., Prichard, W., & Heady, C. (2013). Taxing the Informal Economy: Challenges, Possibilities and Remaining Questions*. In IDS Working Papers (Vol. 2013, Issue 429, p. 1). Wiley. https://doi.org/10.1111/j.2040-0209.2013.00429.x
Khan, A. U., Akhtar, N., Khan, M. D., & Habib, R. I. (2020). Informal Economy Enabling Tax Evasion and Money Laundering in Pakistan: An Analytical Study. In Review of Politics and Public Policy in Emerging Economies (Vol. 2, Issue 2, p. 131). https://doi.org/10.26710/rope.v2i2.1760
Khan, T. S., & Norregaard, J. (2007). Tax Policy: Recent Trends and Coming Challenges. In IMF Working Paper (Vol. 7, Issue 274, p. 1). International Monetary Fund. https://doi.org/10.5089/9781451868371.001
Mick Moore, Wilson Prichard, Working Paper, Michael Durst, Odd-Helge Fjeldstad, Tom Goodfellow, Samuel Jibao, Jalia Kangave, Olav Lundstol, Giulia Mascagni, Rhiannon Mccluskey, Milly Nalukwago, Sol Picciotto, Henry Saka, Vanessa Van Den Boogaard, Ronald Waiswa, Nyah Zebong, Jan Isaksen, Justin Zake. (2017). How Can Governments of Low-Income Countries Collect More Tax Revenue? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3120566
Mirza, H., & Prichard, W. (2013). The Political Economy of Tax Reform in Bangladesh: Political Settlements, Informal Institutions and the Negotiation of Reform. In SSRN Electronic Journal. RELX Group (Netherlands). https://doi.org/10.2139/ssrn.2436434
Murty, S. (2019). Some results from the theory of optimal taxation and their relevance for increasing the progressiveness of Indian tax structure. In Indian Economic Review (Vol. 54, Issue 1, p. 19). Springer Science+Business Media. https://doi.org/10.1007/s41775-019-00048-3
Okunogbe, O., & Tourek, G. (2024). How Can Lower-Income Countries Collect More Taxes? The Role of Technology, Tax Agents, and Politics. In The Journal of Economic Perspectives (Vol. 38, Issue 1, p. 81). American Economic Association. https://doi.org/10.1257/jep.38.1.81
Steenekamp, T. J., & Döckel, J. A. (1993). Taxation and tax reform in LDCs: Lessons for South Africa. In Development Southern Africa (Vol. 10, Issue 3, p. 319). Taylor & Francis. https://doi.org/10.1080/03768359308439697
Sulistiyani, E., Ali, A. H. N., & Astuti, H. M. (2020). Change Management Strategies to Implement A Fingerprint Based Attendance System in Information Systems Department Using ADKAR Model. In Applied Technology and Computing Science Journal (Vol. 3, Issue 1, p. 22). Universitas Nahdlatul Ulama Surabaya. https://doi.org/10.33086/atcsj.v3i1.1675
Tangi, L., Janssen, M., Benedetti, M., & Noci, G. (2021). Digital government transformation: A structural equation modelling analysis of driving and impeding factors. In International Journal of Information Management (Vol. 60, p. 102356). Elsevier BV. https://doi.org/10.1016/j.ijinfomgt.2021.102356
The Distributional Impact of Fiscal Policy in South Africa. (2023). http://documents.worldbank.org/curated/en/502441468299632287/pdf/WPS7194.pdf
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H., & Oh, P. H. (2021). Preparing Workplaces for Digital Transformation: An Integrative Review and Framework of Multi-Level Factors [Review of Preparing Workplaces for Digital Transformation: An Integrative Review and Framework of Multi-Level Factors]. Frontiers in Psychology, 12. Frontiers Media. https://doi.org/10.3389/fpsyg.2021.620766
Wilson, C., & Mergel, I. (2022). Overcoming barriers to digital government: mapping the strategies of digital champions. In Government Information Quarterly (Vol. 39, Issue 2, p. 101681). Elsevier BV. https://doi.org/10.1016/j.giq.2022.101681
Armenakis, A. A., & Harris, S. G. (2017). Reflections: Our journey in organizational change research and practice. Journal of Change Management, 17(2), 84–107. https://doi.org/10.1080/14697017.2017.1299370
Boukamel, O., & Emery, Y. (2021). Public sector innovation through collaboration: A multi-stakeholder perspective. Public Management Review, 23(4), 521–546. https://doi.org/10.1080/14719037.2020.1810244
Fernandez, S., & Rainey, H. G. (2021). Managing successful organizational change in the public sector. Public Administration Review, 81(3), 435–444. https://doi.org/10.1111/puar.13202
Hiatt, J. M. (2006). ADKAR: A model for change in business, government and our community. Prosci Learning Center Publications.
Oreg, S., Bartunek, J. M., Lee, G., & Do, B. (2020). An affect-based model of recipients’ responses to organizational change events. Academy of Management Review, 45(2), 210–234. https://doi.org/10.5465/amr.2016.0289
Prosci. (2020). The role of change management in digital transformation. Retrieved from https://www.prosci.com
Prosci. (2022). ADKAR and its application in public sector change initiatives. Retrieved from https://www.prosci.com
Singh, S., Kumar, R., & Khurana, S. (2020). Exploring the role of employee readiness in organizational change management. Change Management Review, 19(1), 44–58.
Wirtz, B. W., Weyerer, J. C., & Geyer, C. (2022). Artificial intelligence and the public sector—Applications and challenges. International Journal of Public Administration, 45(3), 214–226. https://doi.org/10.1080/01900692.2021.1978683
Yildiz, M., Bailey, M., & Zhang, Y. (2021). Training and adaptability in public sector digital transformations. Government Information Quarterly, 38(4), 101587. https://doi.org/10.1016/j.giq.2021.101587
Published
2025-01-02
How to Cite
RATNASARI, Widya Ayu; HERMAWAN, Ancella Anitawati.
Analysis of Employee Readiness to Strengthen the Success of Digital Transformation in Public Institutions.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 2, jan. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/122384>. Date accessed: 09 mar. 2025.
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