| Summary: | Digital transformation is crucial for companies if they want to stay competitive. The use of mobile devices and proliferation of the internet has continued to grow over the past 20 years, radically changing customer and employee expectations and behaviours in all sectors. Disruptive technologies such as artificial intelligence, machine learning, blockchain, augmented reality and virtual reality, and the internet of things are quickly changing the way people lead their lives. This study aims to assess and explain how certain variables, specifically, organizational commitment and employee’s perceived quality of communication and dissemination of information, affect organizational readiness for planned change prior to and during the implementation of e-commerce at a local legacy retailer. Twenty-six employees at a local legacy retailer in Iceland completed an online survey containing 43 statements. The results indicate that there seems to be little relationship between employees’ organizational commitment and their readiness for change, thereby rejecting hypothesis 1. Perception of quality of communication and dissemination of information was found to have a significant positive moderation effect on the relationship between organizational commitment and employees’ readiness for change, thus accepting hypothesis 4. Moreover, according to the findings, there is a strong positive relationship between perceived quality of communication and dissemination of information and employees’ readiness for change and their organizational commitment, hence supporting hypothesis 2 and hypothesis 3, respectively. The findings highlight the crucial role communication and dissemination of information play prior to and during planned change initiatives, such as the implementation of a new e-commerce application, as well as its effect on employees’ organizational commitment. Keywords: Organizational change, Communication, Organizational commitment, Readiness for change, Attitudes towards change, E-Commerce.
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