Abstract
This report investigates the contradictory nature of digital transformation within organizations and its impact on innovation capabilities, specifically highlighting the potential detrimental effects on employee creativity. Although digital transformation is often lauded for enhancing innovation through various technological advancements and collaborative tools, this research highlights a critical yet underexplored consequence—the stifling of employee creativity. By examining the mechanisms of employee surveillance and digital stress, as well as the resultant information overload and decline in spontaneous interactions, the paper accentuates the human cost of an uncritical embrace of digitalization. It argues that while digital technologies can serve as catalysts for innovation, they can simultaneously erode the informal, creative spaces that foster original thought, ultimately impeding the very innovation they aspire to enhance. To reconcile the advantages of digital transformation with the need to preserve creativity, the paper suggests an approach that values and nurtures the human element alongside the adoption of new technologies.
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