|M.Sc Student||Lavi Ronny|
|Subject||Employees' Readiness to Adopt Digital Technology as|
Related to their Absorptive Capacity
|Department||Department of Industrial Engineering and Management||Supervisor||PROFESSOR EMERITUS Miriam Erez|
|Full Thesis text|
Adopting technological innovation has become one of the key success factors in the sustainable competitive advantage of companies today. Yet, many organizations in the traditional industry have reported failure to implement digital technology. In the vast majority of cases, employees resist the change needed to adopt the new technology. This study aims to examine the relationships between the employees’ technological readiness as reflected in signing-up for the specific lecture on digital manufacturing technology, and some personal and contextual factors. Participants were 102 managers and employees who work in three manufacturing plants. The research questionnaire assessed the employees’ self-efficacy to implement the proposed change, their perceived valence of the technological change, their absorptive capacity, which assesses their level of absorption of new knowledge, and employees’ perceptions of their managers’ opening leadership behaviors. Furthermore, the questionnaire assessed the employees’ technological readiness as reflected in signing-up for the specific lecture on digital manufacturing technology, relevant to the expected technological change. Our findings supported the research model, demonstrating that individual absorptive capacity mediated the relationship between self-efficacy and leaders’ opening behavior on the employees’ technological readiness. The key role played by absorptive capacity suggests that proactive actions to provide relevant knowledge to the employees can increase their openness and readiness to adopt new technology.