I have to apply this strategy! Understanding the mediating effect of digitalization on strategic orientations and sustainable competitive advantage among small enterprises in Tanzania

Abstract

PurposeThe combination of strategic orientation and digitalization for sustainable competitive advantage among small businesses is still not given much attention in the literature. Therefore, this study aims to understand the influence of strategic orientation on sustainable competitive advantage while mediating the relationship with digitalization.Design/methodology/approachThis study used a cross-sectional design. This design helped collect data from 234 small businesses in Arusha city, Tanzania. Since the study used latent variables, structural equation modeling (SEM) was used to analyze relationships and conduct confirmatory factor analysis. Through bootstrapping confidence intervals, Hayes's Process was also used to test how digitalization mediates the relationship between strategic orientations and sustainable competitive advantage.FindingsThe strategic orientation attributes that include market orientation, entrepreneurial orientation and learning orientation were positively and significantly related to digitalization. Furthermore, the results on digitalization and sustainable competitive advantage show a significant positive relationship. Finally, digitalization was analyzed to mediate the relationship between strategic orientation, market orientation, entrepreneurial orientation, learning orientation and sustainable competitive advantage. Hence, all hypotheses were supported.Research limitations/implicationsThis study adopted a cross-sectional design that helped to capture the quantitative information. In addition, the current study is limited to Tanzania's small businesses; thus, the findings cannot assure generalization of the conclusion to other countries because of the differences in social, cultural and technology across countries.Originality/valueThis study integrates the concepts of strategic orientation from the strategic management discipline and digitalization from a technology perspective. As a result, the study adds new knowledge about combining two aspects and determining whether they add value in terms of providing a sustainable competitive advantage. This knowledge comes from digitalization, which acts as a mediator between strategic orientation dimensions and a sustainable competitive advantage.

The role of Tri Hita Karana-based business strategy and digital marketing to improve sustainable business performance

“…So, the higher the environmental orientation owned by traditional tie weaving SMEs in Bali as indicated by the indicators of environmental orientation variables owned by traditional tie weaving SMEs in Bali, namely the indicators: communicating a mission statement about the importance of protecting the environment, committing to participate in controlling air pollution, communicating to employees about the importance of protecting the natural environment; always evaluate the environmental impact of operational decisions taken; managed oriented to occupational health; and managed oriented to occupational safety, it can improve sustainable business performance. This study also strengthens the results of previous research conducted by Ismail (2023), which states that environmental orientation variables have a positive and significant effect on sustainable business performance. The results of this study are reinforced by the research of Akomea et al (2022), Souto (2022, and Danso et al (2022), who found the results of environmental orientation variables have a positive and significant effect on sustainable business performance that it can be concluded that high environmental orientation has a positive and significant influence on sustainable business performance.…”

“…After conducting indepth interviews with several respondents, the following explanation was obtained. These results are also reinforced by the results of research by Alerasoul et al (2022), Gomez-Trujillo andGonzalez-Perez (2022), Chavez et al (2023), Ismail (2023, Shah et al (2023), found that digital orientation has no effect on sustainable business performance.…”

Corporate Resilience and Competitiveness Relying on System Digitalization Through Ambidextrous Innovation

“…Previous empiricists have proven that digitalization has a significant effect on company resilience (Zhang et al, 2021) and digitalization has a significant effect on competitive advantage (Ismail, 2022;Shehadeh et al, 2023). The existence of ambidextrous innovation breakthroughs will have an impact on digitalization which will result in company resilience so that the digitalization process followed by ambidextrous innovation breakthroughs will increase company resilience so that hypothesis that can be built in the role of ambidextrous innovation as a mediating variable between system digitalization and company resilience is: H7.…”

“…Priyanto, et al (2023) who explore competitive advantages in the banking sector from the aspect of digital business strategy show that competitive advantage is very significantly influenced by digital business strategies which are reflected in management skills, operational capabilities and also information technology skills and electronic collaboration capabilities. Other empiricists show that digital transformation has a significant effect on competitive advantage (Ismail, 2022;Shehadeh et al, 2023) and also showed the significant influence of testing on the small and medium enterprise (SME) industry (Putra et al, 2022). The digitization process is applied to shipping agency service companies that rely on human resources in addition to providing benefits for customers where indirectly the company benefits in the form of company resilience.…”

Pengaruh Penerapan Total Quality Management terhadap Kinerja Inovasi Dimediasi Knowledge Sharing

“…Seiring berkembangnya pemahaman akan pengelolaan sumber daya manusia yang dimana kini manusia dianggap sebagai aset berharga bagi perusahaan untuk mampu meningkatkan daya saing dan memperkuat posisi di lingkungan bisnis yang kompetitif [6]. Karyawan dianggap sebagai indikator penting yang akan menopang keberlangsung perusahaan, oleh sebab itu dibutuhkan kinerja karyawan yang berinovasi dalam upaya menjadi pengaruh positif terhadap kinerja perusahaan [7]. Pada dasarnya, kinerja yang menerapkan inovasi dimulai ketika karyawan mengimplementasikan hal-hal baru yang berbeda dari cara biasanya ketika mengerjakan suatu pekerjaan.…”