While technology provides the foundation for economic efficiency in manufacturing industries, human capital and knowledge are also critical for creating new knowledge for manufacturing. Previous studies have focused extensively on the integration and collaboration of business functions such as manufacturing and human resources, particularly on finding the talent required in the digital transformation process. The present study aims to investigate the level of readiness in organisations based on both human and technological factors related to digital transformation. It also presents the most significant factors essential to establishing effective collaboration between human and technological aspects. In general, we question how organisations should ensure effective digital transformation by considering the optimum partnership between human and technological factors.

Following a comprehensive literature review, detailed mixed-method research was conducted to study the factors affecting digital transformation readiness identified in the literature review. Seventy professionals with experience and exposure to digital transformation responded through a questionnaire. The data were analysed based on Structural Equation Modelling (PLS-SEM). Interviews conducted with nine experts were analysed using Thematic Modelling. The results showed that the level of existing smart infrastructure, change management and communication, knowledge, skills and abilities, leadership and culture are the factors that primarily influence readiness. It was also revealed that the level of innovation adoption, support and engagement, and efficiency of technology have minimal influence on the success of transformation.