Identifying the factors influencing enterprise digital transformation intention: an empirical study based on net effects and joint effects

Abstract

PurposeIn contrast to existing studies, this paper aims to propose that digital transformation does not depend on a single condition; rather, it depends on the interaction between internal and external factors of a firm. Therefore, the aim of this paper is to examine the effect of a combination of internal and external factors on a firm's digital transformation intention.Design/methodology/approachAn empirical analysis on a sample of 112 Chinese small- and medium-sized firms was conducted by applying smart-PLS and fuzzy set qualitative comparative analysis (fsQCA).FindingsThe results of smart PLS show that external pressures (institutional and market pressures) and human capital have a positive impact on corporate digital transformation intentions. From a combination perspective, the results of the fsQCA show that there are five causal conditions that lead to high digital transformation intention. In contrast to the net effect, the results of fsQCA show that different combinations of states of internal (human capital, organizational culture and technological capital) and external elements (institutional and market pressures) of the firm are likely to stimulate digital transformation intention.Originality/valueThis study provides empirically based insights into firms' digital transformation intentions and advances the current understanding of the drivers and inhibitors of digital transformation. Unlike most current research, which tends to focus on the net effect of factors influencing the digital transformation of enterprises, this study focuses on identifying the core elements influencing enterprises' digital transformation intention, especially the joint effect of different factors, both internal and external to the enterprise. The combined SEM and fsQCA findings of this paper not only enrich the existing theories on digital transformation but also have high value in guiding the digital transformation of firms.

Impact of Digital Government on Digital Transformation of Enterprises from the Perspective of Urban Economic Sustainable Development

“…Optimizing the business environment means liberating productivity and enhancing competitiveness [48]. Firstly, from the perspective of enterprises, the digital transformation of enterprises is a long-term systematic reform project in production, sales, management, and other aspects, characterized by high costs, high risks, and long cycles [49]. The optimization of the business environment by the digital government, mainly focusing on improving administrative efficiency and efficient services, can significantly reduce the institutional transaction costs of enterprises, reduce overall business operating costs, and reduce risks in the process of digital transformation.…”

Leveraging digital transformation on the path to sustainable development: the role of excellence models

“…Adding to this discussion, it is also necessary to study organisational conditions that strengthen or weaken digital capabilities relationships (Wielgos et al, 2021). In this regard, previous studies found that digital transformation intentions are not influenced by organisational culture (Zhang et al, 2023b), but digital culture context reinforces the relationship between digital technologies and operational performance (Hautala-Kankaanp€ a€ a, 2022). These findings indicate that other cultural traits might be relevant in the effective use of digitalisation to attain organisational success and support digital culture.…”

“…Organisational culture is crucial to enable quick adjustments to changes to different skills and technologies in the demand for successful digital transformation (Luu, 2023). Moreover, organisations with better technological capabilities and good organisational culture are less dependent on external pressures for digital transformation (Zhang et al. , 2023b).…”

The impact of the interaction of independent and cooperative innovation on firm digitization: the moderating role of managerial discretion

“…Previous research has explored the antecedents of enterprise digitization both internally and externally (Chen and Tian, 2022; Luo and Yu, 2022; Huang et al ., 2023). Regarding internal factors, such as the chief executive officer (CEO) background, directors and officers liability insurance, internationalization of the top management team (TMT), leadership, information technology investments, open innovation, exploratory innovation, and dynamic capabilities, they play an important role in company digital development (Kane et al ., 2015; Porfírio et al ., 2021; Gómez-Cruz et al ., 2022; Luo and Yu, 2022; Zhu et al ., 2022; Chen et al ., 2023; Chung and Kim, 2023; Zhang et al ., 2023a, b; Luan et al ., 2024). Regarding external factors, such as market competition, digital technology, intellectual property protection, government policies, and tax incentives, they are also related to digital development (Chen and Tian, 2022; Luo and Yu, 2022; Zhu et al ., 2022).…”

“…Although research on the antecedents of enterprise digitization is extensive, some important factors remain neglected, such as less research on the impact of the interaction of internal and external factors on enterprise digitization (Zhang et al ., 2023a, b), especially the interaction between internal innovation (independent innovation) and external innovation (cooperative innovation) (Xu and Zhang, 2008; Hagedoorn and Wang, 2012; Zhang et al ., 2019; Delgado-Verde et al ., 2021; Huang et al ., 2023; Luan et al ., 2024; Lee et al ., 2024). Although existing studies have explored the impact of innovation on firm digitization (Gómez-Cruz et al ., 2022; Chen et al ., 2023; Chung and Kim, 2023; Huang et al ., 2023; Luan et al ., 2024), only the impact of open innovation and exploratory innovation on digitization has been explored (Huang et al ., 2023; Luan et al ., 2024).…”