Digital Transformation: Towards a model for competency-based governance of digital transformation for boards of directors in South Africa

Introduction: The requirement for boards of directors to attain competencies in relation to governance of digital transformation (Dx) is evidently increasing at global level. South Africa, as a player within the global economic landscape, cannot afford to have directors who don’t understand the requisite Dx governance competencies. In spite of corporate governance (CG) codes, principles, standards, and legislation, frameworks or models on Dx governance are not yet integrated into functional board activities.
Goals and Methods: This study explores development of a competency-based model to guide the boards of directors in South Africa on the required competencies for Dx governance within the context of CG. The study was hinged upon an interpretivist epistemology, with a case study design used as a strategy for inquiry. Using purposive sampling approach, a total of seven participants were interviewed using a semi-structured interview guide. Data was analysed through a thematic approach, using the COSTA QDA technique on webQDA software.
Results: The study findings culminated in three main themes: “There is no standard definition of competence-based models for governance of Dx”; “Governance of Dx is perceived as governance of information technology (IT)”; “There is a need for Dx competence at board level”.
These themes resulted in a development of a model entitled MADIBA Model, which is an acronym for six constructs that could guide establishment of a competency model for Dx governance.
Conclusion: Study limitation mainly related to only following a subjective approach to the inquiry, justified by the study’s goal to explore in-depth views and perspectives of boards of directors in relation to competency-based model of Dx governance.
Recommendations: The study recommended that there could be another study focussing on pragmatic approaches or even positivistic perspectives, to obtain generalised perspectives on the phenomenon.
Key words: Competency-Based Model, Boards of Directors, Digital Transformation, Digitalization, Governance, Technology.