Influence of Digital Work Capability on Workforce Agility among Generation Z IT Professionals

Authors

Keywords:

Digital transformation, digital work capability, dynamic capabilities, micro-foundation, workforce agility

Abstract

Purpose: This study examines the influence of perceived digital work capability on workforce agility among Generation Z IT professionals in Nepal. It addresses the limited empirical attention given to employee-level behavioural mechanisms through which digital capability is enacted in changing work systems.

Design/methodology/approach: Drawing on Dynamic Capabilities Theory and Sociotechnical Systems Theory, this study conceptualises workforce agility as a behavioural micro-foundation of digital work capability. Using survey data from 350 Generation Z IT professionals in Nepal and covariance-based structural equation modelling (SEM), the study examines the relationship between workforce agility and perceived digital work capability.

Findings: Results indicate that workforce agility is positively and significantly associated with digital work capability, accounting for 35.5% of the variance. The findings suggest that adaptive behavioural orientation, rather than demographic characteristics or formal credentials, is meaningfully associated with digital effectiveness within evolving work systems.

Implications: The study highlights the importance of employee-level adaptive capacity in supporting digital effectiveness within evolving work systems. For IT firms, the findings suggest that digital capability development should encompass adaptability, proactive problem-solving, resilience, and continuous learning, rather than focusing solely on technical skills.

Originality/value: This study contributes to the digital transformation literature by empirically operationalising employee-level micro-foundations and demonstrating how adaptive capacity facilitates the development and enactment of digital capabilities.

JEL Classification: M15, M12, O33

Author Biographies

Sanjaya Pudasaini, Kathmandu University School of Management, Nepal

Sanjay Pudasaini is an Assistant Professor of Information Systems at Kathmandu University School of Management, Nepal. He holds a PhD in Technology Management. His research interests encompass information systems, digital transformation, tourism technology, innovation, technology management, and evidence-based business research. His research work focuses on examining the organisational, managerial, and societal implications of emerging technologies, digitalisation, and technology-enabled innovation.

Urmila Thapa Magar , Nepal Open University, Nepal

Urmila Thapa Magar teaches Social Sciences at Nepal Open University, Nepal, and an MPhil student engaged in advanced research in her field. Her academic interests encompass social systems, educational development, technology management, and contemporary social issues. Her research work focuses on understanding emerging social and technological transformations and their implications for education, organisations, and society.

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Published

2026-09-23

Issue

Vol. 1 No. 1 (2026)

Section

Research Articles