Abstract:
This study was conducted with the general objective of Investigating Determinants of Digital Transformation of Business or Firms in West Showa zone, Oromia region, Ethiopia. The study employed both descriptive and Inferential research design with quantitative and qualitative research approach. Both primary and secondary data were used, and primary data were gathered from 265 sample respondents those were including manager or owner of firms. From descriptive statistics, none of firms were used digital technologies with full capacity rather most of them were partially implementing it. The model used to identify determinants of Digital Transformation (DT) was Multiple Linear Regression Analysis. The result depicts that capital of firms, absence of technical barriers, organizational barriers, age of firms, external barriers, Skill-gap barriers are positively affecting process of digitalization positively and statistically significant variables at less than 1% level of significance. Based on the findings, the researcher recommended that firms should work to alleviate skill gap, internal barriers through training and further education for workers. Government should also develop clear and appropriate rules and regulations to encourage firms
