Digital Anxiety in the Finance Function: Consequences and Mitigating Factors

Abstract

This study investigates digital anxiety as a potential barrier to the digital transformation of the finance function. To embrace digital transformation, the finance function crucially relies on the engagement of its employees. However, due to this transformation, these employees face high uncertainty regarding future job demands, possibly invoking digital anxiety. Based on a survey of 1,038 finance employees from a multinational business group and rich qualitative insights, we first indicate the relevance of digital anxiety in the finance function. Our results further show that digital anxiety is negatively associated with work engagement. Finally, we find that employees who have taken part in digital trainings, who are surrounded by digitally savvy peers, and who work under a transformational leader are associated with less digital anxiety. Our study highlights the need to carefully consider employee emotions to digitally transform the finance function and outlines means for organizations to cope with these emotions.