Influence of Digital Transformation Capability on Operational Performance

Abstract

With the changes in market environments and the development of digital technology, enterprises urgently need to develop the capability to adapt to profound changes in strategy and business processes. Some previous research regarded a digital marketing capability as a digital transformation capability, but other research explained the importance of digital competence to enterprises, from the perspective of resource allocation. However, they could not explain the phenomenon of enterprises on the usage of advanced digital technology to build the capability to refresh or replace the business model and the value creation process. This study constructed the dimensions of a digital transformation capability that contains three hub-factors (sensing, organizing, and restructuring) under the dynamic capability theory. This study collected 162 sets of enterprise data through a survey, and investigated the relationships of an enterprise’s strategy orientation, digital transformation capability, and operational performance by using SPSS and SmartPLS 3. The results show that strategic orientation has a positive impact on a digital transformation capability, and that digital transformation capability has a positive impact on operational performance. In addition, the digital transformation capability plays a mediating role between strategic orientation and operational performance. Doubtlessly, enterprises need to focus on building their own digital transformation capabilities to create new enterprise value. A digital transformation capability will encourage enterprises to integrate their business processes and routines through digital technology to achieve a competitive advantage.

The Influence of Technology Readiness, Strategic Leadership, and Organizational Change on Organizational Performance in the Indonesian Navy

“…The mediating variables in this study also contribute to the increase or decrease in organizational performance which is influenced by factors such as technology readiness, strategic leadership, and organizational change. In addition, the results shown in this study have been able to confirm previous studies that have been revealed by (Kristian et al, 2023), (Blut & Wang, 2020), (Tetik, 2020), (Rosi D'Avila et al, 2021), (Supriharyanti & Sukoco, The Influence of Technology Readiness, Strategic Leadership, and Organizational Change on Organizational Performance in the Indonesian Navy 2023), (Darling & Venkitachalam, 2021), (Jensen, Øygarden, Mikkelsen, & Olsen, 2023), (Yu, Wang, & Moon, 2022).…”

Digital transformation and export performance: a process mechanism of firm digital capabilities

“…Digital transformation (DT) is the application of cutting-edge digital technologies and solutions to modernise and enhance systems and processes, protocols, corporate culture and consumer engagement to meet and exceed the shifting requirements at business or strategic (Yu et al ., 2022). DT would entail integrating emerging technologies for digitally mature firms to solve their business concerns (Van Veldhoven and Vanthienen, 2022).…”

Should SMEs diversify their global destinations? The role of market insights and digital transformation

“…DT is the application of cutting-edge digital technologies and solutions to modernise and enhance systems and processes, protocols, corporate culture and consumer engagement to meet and exceed the shifting requirements of business or strategy (Yu et al, 2022).…”