DRIVING DIGITAL TRANSFORMATION AND OPERATIONAL EXCELLENCE IN EGYPT'S SERVICE SECTOR

Abstract

Abstract: Digital transformation presents Egypt with a strategic opportunity to revolutionize key sectors including financial services, retail, healthcare, agriculture, and service sectors. However, This research explores the critical factors influencing operational excellence (OPX) in service firms in Egypt, focusing on leadership, human resource management (HRM) practices, operations strategy, and involvement culture. The study spans various service sub-sectors, including banking, ICT, insurance, aviation, hotels, and medical care. A total of 700 questionnaires were distributed, with 368 valid responses, resulting in a 53% response rate. Multiple regression analysis revealed a high positive impact of the variables on OPX, with an R-value of 83.2% and an R² of 69.2%. Among the factors, operations strategy had the greatest contribution to OPX, while leadership showed the least. The findings also indicated sectoral differences, with hotels scoring the highest mean values across all factors. In addition to exploring operational excellence in Egypt, the research highlights the role of digital transformation in the country's service sector, emphasizing its potential to revolutionize key industries such as financial services, healthcare, retail, and agriculture. Digitalization can drive economic growth, enhance efficiency, and promote equity, but success requires robust technological infrastructure, skilled human capital, and a supportive legal framework. The study outlines a structured, eight-step process for digital transformation in Egypt’s service sector, based on insights from 21 structured interviews with digitalization specialists. operational excellence in Egypt with strategies for digital transformation, this research provides valuable recommendations for both academics and practitioners aiming to enhance service sector performance and drive digital innovation.