Impact of Digital Strategic Orientation on Organizational Performance through Digital Competence

Abstract

In the era of the digital economy, enterprises need a comprehensive digital transformation of strategy, business, organization, competence, and operation. However, being limited themselves to the development of digital technology, previous studies mainly focused on the development and application of digital technology, single case studies, and multi-case studies of digital transformation. Few researchers systematically studied the digital transformation mechanism at the organizational level. Therefore, this study explored the relationship between a strategic orientation and organizational performance though digital competence at the organizational level. To accomplish the task, this study basically constructed the dimensions of digital competence according to core competence theory. Digital competence contains three hub-factors: digital infrastructure, digital integration, and digital management. This study collected 160 questionnaires from Chinese enterprises and analyzed the data using SmartPLS 3. This study analyzed the positive relationship between digital strategic orientation, digital competence, and organization performance. This study identified the importance of digital competence through the empirical analysis of enterprises that are undergoing digital transformation or had completed a digital transformation. Therefore, enterprises need to pay attention to the impact of digital competence on organizational performance. Digital competence is a reshaping of corporate resources when facing a turbulent digital environment. Moreover, digital competence can ultimately achieve value delivery through the improvement of enterprise organizational performance.

Influence of Digital Transformation Capability on Operational Performance

“…Second, digital transformation managers need to focus on building their own digital transformation capability to create new value to attain sustainable competitiveness. The better the enterprise's digital transformation, the higher the operational performance [6,8,13]. Li and Liu [40] also found that a dynamic capability positively affects competitive advantage.…”

“…It has been used in many research situations, such as digitization and innovation [17,24,29,30]. According to Yu and Moon [8], digital strategic orientation refers to the overall strategic direction of an enterprise in the context of digital transformation, including the strategic measures to achieve it. This study is aimed at the current digital environment, based on digital strategic orientation studies, explaining the relationship between strategic orientation (customer orientation and technology orientation) and the digital transformation capability.…”

“…From the resource-based view, core competence theory and dynamic capability theory of existing theoretical research, the variables cover strategic orientation including customer orientation (CUO) developed by Lu et al [1] and technology orientation (TO) developed by Yu and Moon [8]. Based on the original dynamic capability [9,10,17], a digital transformation capability (sensing, organizing, and restructuring) in the new digital environment was developed to explain the mechanism of digital transformation.…”

“…Measuring only one aspect of an e-commerce capability or a digital marketing capability to investigate the digital transformation capability is not enough. Other research explained the importance to enterprises of digital competence from the perspective of resource allocation [8], however enterprises not only need to deeply explore the management changes brought by digitalization, but they also need to make adaptive adjustments to the action mechanism of a dynamic capability. Most of the research based on a dynamic capability in the context of digital transformation [9] included sensing, seizing, and transforming [10][11][12].…”

Pelatihan Kerja, Soft Skill dan Hard Skill Mendorong Peningkatan Kinerja Karyawan

“…Peningkatan kinerja karyawan juga pada akhirnya berekses pada kenaikan gaji atau kompensasi sebagai konseksuensi logisnya (Reza Putra & Gupron, 2020). Lebih lanjut, (Almusaddar et al, 2018;Yu & Moon, 2021) juga mengungkapkan bahwa peningkatan kompetensi juga memberikan peningkatan kepuasan dan motivasi kerja karyawan. Motivasi kerja karyawan ini juga menjadi pendorong peningkatan kinerja.…”