Unlocking Digital Potential – The Impact of Innovation and Self-Determined Learning

In an era of rapid digital transformation, organisations must cultivate dynamic capabilities that promote innovation and continuous learning. This study examines how self-determined motivation and innovation adoption are crucial enablers in developing the digital competencies essential for employees to navigate digital transformation. Grounded in Self-Determination Theory and the Diffusion of Innovation framework, our research underscores the systemic role of individual agency, technological advancements, and organisational structures in facilitating workforce adaptation. Employing a quantitative approach with 152 survey participants, our findings reveal that self-determined motivation alone is inadequate while adopting innovation significantly influences digital competence. We demonstrate that human-centred factors must align with systemic digital transformation efforts. Moreover, we highlight the necessity of integrating employee capabilities into broader enterprise and government digital innovation strategies. The implications of this study are both theoretical and practical. We stress the need for organisations to design change processes that support digital knowledge acquisition and adaptability in evolving workplaces. Our research offers a systemic perspective on digital transformation, reinforcing that successful organisational innovation requires structured learning environments that empower employees. By fostering an ecosystem where digital competencies are nurtured, organisations can enhance agility, resilience, and sustained competitiveness in the digital age.