FACTORS INFLUENCING THE DIGITAL TRANSFORMATION OF AGENCIES UNDER THE EXCISE DEPARTMENT REGION 1, EXCISE DEPARTMENT

Abstract

This research article aimed to examine the influence of 1) internal organizational factors and 2) external organizational factors on the digital transformation of agencies under the Excise Department Region 1. A quantitative research methodology was employed whereas the sample consisted of 230 personnel working within agencies. The sample size was determined by using the G*Power program to ensure statistical reliability. A multistage sampling technique was employed, consisting of stratified random sampling within sub-agencies and simple random sampling. Data were collected using a structured questionnaire developed from relevant literature and validated by experts. Descriptive statistics, including frequency, percentage, mean, and standard deviation, were used to summarize the data, while inferential statistics, specifically multiple regression analysis using the Enter method, were employed to test the research hypotheses.

The results revealed that 1) internal organizational factors, including leadership, personnel and organizational structure had a significant influence on digital transformation. These factors explained 76.40% of the variance (R² = 0.764) and had a predictive power of 75.40% (Adjusted R² = 0.754) and 2) external organizational factors, including political, social, economic, and technological aspects, also significantly influenced digital transformation, accounting for 78.10% of the variance (R² = 0.781) and 77.70% of predictive accuracy (Adjusted R² = 0.777). These findings can be used as empirical data for determining government digital policies and developing strategic plans that respond to internal and external environmental factors of the organization.