by Vimala Venugopal Muthuswamy, N.Nithya
ABSTRACT
This study investigates the influence of metaverse technology on organizational performance, emphasizing the mediating roles of digital culture and employee digital capability. Drawing on contemporary digital transformation theories, the research examines how immersive technologies reshape workplace practices, improve operational efficiency, and foster a digital-ready workforce, leading to higher organizational performance. A structured survey was conducted among the employees working in retail and e-commerce organizations. Partial Least Square-Structural Equation Modeling (PLS-SEM) was employed to test the study hypotheses. The results reveal that metaverse technology significantly enhances organizational performance, primarily through the development of a strong digital culture. On the other hand, the mediation effect of employee digital capability was insignificant. Furthermore, digital literacy is found to be an influential factor having significant influence on employee digital capability. Digital literacy contributed to organizational performance by strengthening the relationship between metaverse technology and employee digital capability. The study contributes to the growing body of literature on metaverse-enabled organizational transformation and offers practical insights for managers seeking to adopt immersive technologies responsibly.
