The Influence of Risk Mitigation, Continuous Process Improvement, and Digital Transformation on Organizational Performance: Evidence from Saudi Arabia

Abstract

This study examined the effect of risk mitigation, continuous process improvement, and digital transformation on organizational performance in the Saudi Arabian power and energy sector. Primary data were collected from a sample of 350 project engineers, managers, and technical staff working on medium-voltage substation and high-voltage power cable installation projects with the Saudi Electricity Company and its contractors. Data were analyzed using Structural Equation Modeling (SEM) to test the proposed framework. The constructs were informed by prior literature on risk management, process improvement, and technological transformation in engineering projects. The results demonstrated that risk assessment and mitigation significantly enhanced organizational performance by reducing uncertainties, preventing delays, and ensuring safer execution. Continuous process improvement was found to positively influence project outcomes by streamlining operations, minimizing wastage, and promoting efficiency in project delivery. Furthermore, digital Transformation in project management—including monitoring systems, automation software, and ERP platforms—showed a strong positive impact on organizational performance by improving coordination, real-time reporting, and compliance with HSE standards. Collectively, the three independent variables explained a substantial proportion of variance in organizational performance, highlighting their critical role in engineering project execution.