Analysis of the Influence of Corporate Maturity Mismatch on the Digital Transformation of Manufacturing Companies in Indonesia

Aim. The presented study aims to determine the narratives of digital economic transformation in industrial territories and to identify regions with the best prospects for its successful implementation.Tasks. The authors clarify the concept of “digital transformation narrative”; develop and test a logical model of narrative analysis of regional digital transformation; build a typology of industrial regions according to the prospects for successful implementation of digital economic transformation with allowance for the identified narratives.Methods. This study uses an original narrative analysis methodology consisting of five consecutive steps. During the first three steps, the interest of authorities, businesses, and the population in the implementation of digital transformation is assessed using bibliometric, comparative, and statistical analysis respectively. The fourth step of the methodology is implemented using content analysis tools, which makes it possible to identify the key narrative components of digital economic transformation. The fifth step summarizes the results obtained earlier by building a typology of industrially developed regions according to the level of their propensity for digital economic transformation determined with allowance for narratives.Results. The study proves that narratives forming in society during socio-economic and cultural transformations caused by digital transformation can (and should) serve as a source of information about the region’s propensity for transformations on the basis of innovations, reflecting the degree of the preparedness of authorities, businesses, and the population to adopt and participate in such transformations. The creators of digitalization narratives are identified, which include the government, businesses (represented by employers), and society (represented by job seekers and employees). It is found that the supply of digital competencies significantly exceeds the demand in the labor market. This may be due to the narratives operating in society, among other things. It is revealed that the interest of the Russian society in the digital transformation of the economy remains significant, while the interest of the population in individual narrative components varies in the regions. It is determined that soft skills prevail among the key competencies of economic transformation. It is established that regions with dominating manufacturing industries have a greater propensity for digital transformations: Sverdlovsk, Nizhny Novgorod, Rostov, Chelyabinsk regions, Perm and Krasnoyarsk territories, the Republic of Tatarstan.Conclusion. Territories with extractive industries are still not prone to innovative transformations. At the same time, the population of such territories is more stressed and resistant to innovations. The obtained results are the first step in digital transformation research from the perspective of a narrative approach. This study will be useful for scientists and specialists in the field of narrative economics, as well as for those who are interested in digital transformation issues.

New emerging digital technologies such as artificial intelligence, virtual reality, augmented reality, cloud computing, blockchain, robotization, the Internet of Things, big data, etc. have produced a powerful disruptive effect in almost all areas of our existence and have radically changed the way we live, work, learn or relax. Without consciously realizing it, everyone is adapting to the digital era. As nothing “escapes” the all-encompassing digital transformation, higher education follows track too. So, it is natural to ask ourselves: what are the higher education institutions doing to keep up with this rapidly evolving digital world? In this paper, we present the case of West University of Timişoara as an example of good practice in dealing with the effects of digital transformation on the university and its academic community (teachers, students, administrative staff). Our goal is to gain an understanding of what is being proposed through the institutional development strategy, and what is actually happening in our university from the digitalization perspective. Thus, we conduct an exploratory research using a quantitative approach that involves a survey applied to students enrolled in different study programs, at different levels. We focus on their opinion about how our university can prepare and transform in order to adopt an integrated digital approach, looking into topics like: technology-enabled services, digital enrollment of students, digitization of the administrative processes, implementation of digital procedures to offer recommendations or file complains, digital curricula, new modes of digital learning delivery, etc. Our findings reveal that West University of Timişoara must take significant steps towards the implementation of digital transformations, while, however, remaining watchful and cautious of the hidden implications of this process.

Enterprise digital transformation is critical for enterprises to remain competitive in the fast-paced business environment. To explore the impact mechanisms of enterprise digital transformation on industrial structural adjustment, this paper analyzed data from 3,608 publicly listed enterprises in China from 2007 to 2020. A baseline panel model, a widely used statistical approach that is simple yet maintains generality, was adopted to analyze the data. The indicators for industrial structural adjustment, including production efficiency, production investment, and the efficiency-investment interaction, were considered dependent variables in the model. Nine control variables related to the degree of digital transformation, industry and enterprise attributes, policy, and macroeconomic conditions were then analyzed. The results show that the effective promotion of industrial structural adjustments occurs through the implementation of digital transformation. This positive impact primarily results from its ability to enhance enterprise production efficiency, rather than attracting increased production investment. High-tech enterprises are the initial adopters of digital transformation, and they, in turn, encourage its adoption among other enterprises, including traditional manufacturing enterprises. Additionally, we have observed that well-designed digital transformation-related policies can significantly expedite the digital transformation process for enterprises and contribute to industrial structural adjustments. Lastly, specific digital technologies such as artificial intelligence, cloud computing, and big data play a crucial role in supporting industrial structural adjustments. These findings contribute to a deeper theoretical understanding of digital transformation’s role in industrial structural adjustments and carry significant policy implications.

Digital transformation has become a key factor in the evolution of the retail industry in Indonesia, especially with the increasing adoption of technology in various business operations. This study aims to analyze the impact of digital transformation on the financial performance of retail companies in Indonesia. Using a quantitative approach, this research examines secondary data from annual reports and financial statements of 16 retail companies listed on the Indonesia Stock Exchange (BEI) for the period 2021-2023. Digital transformation is measured based on the ratio of digital intangible assets to total intangible assets, while financial performance is measured using Return on Assets (ROA). The results of a simple regression analysis indicate that digitaltransformation has a significant negative impact on ROA, with each increase in digital transformation associated with a decrease in ROA by 1.381. These findings suggest that poorly managed digital transformation implementation can hinder acompany's financial performance. According to the Resource-Based View (RBV) theory, companies with sufficient resources and capabilities can optimize the benefits of digital transformation, while those with limited resources may experience a decline in financial performance. This study provides insights for industry players on the importance of an effective digital strategy in enhancing competitiveness and operational efficiency. Therefore, retail companies need to conduct thorough planning, strengthen internal capabilities, and regularly evaluate the implementation of digital transformation to minimize its negative impact on profitability.

Aim: This study examines the extent of readiness of Nigeria construction firms toward digital transformation within the study area.
 Study Design: It was a survey research, questionnaires containing information relating to digital Technologies, trend and transformation were administered randomly to selected construction practitioners in Anambra State, Nigeria.
 Place and Duration of the Study: The study was conducted in Anambra State, Nigeria for a period of 6 months.
 Methodology: A total of 84 questionnaires were administered to selected respondents; 80 copies were completed, returned and found useful, thus, giving a response rate of 95%. Data collected were analysed and presented using mean, percentages, relative importance index (RII), bar charts and pie charts.
 Results: The study found out that 63% of construction professional is satisfied with their firm readiness to digital transformation. However, the application of digital technologies skills and its transformation in the study area is still at foundation level. The use of mobile and social technologies (83%), entrepreneurship (73%) and Customer experience & strategic thinking (59%) are common in the study area while InMemory Databases skills (36%), Cloud Computing (39%) and Big Data Analytics (44%) are rare. Furthermore 35%, 53% 1% and 11% of the firms are planning to kick up digital transformation, undergoing some forms of digital transformation, attained or don’t see the need for digital transformation respectively.
 Conclusion: The study was concluded by recommending that construction practitioners should be properly sensitised on the need to understand and conceptualise on how digital transformation and technology will impact construction processes & activities and ability to manage or work within digitally-savvy environments.

The role of CSR is crucial to building a company’s brand strategy, especially companies that exploit natural resources. Branding is crucial for products and services sold in big consumer markets. It’s also important because it helps companies stand out from the competition. The brand strategy brings competitive positioning to life and works position as specific “something” in the mind of customers. The purpose of this paper is to describe the nature and trend of nonfinancial disclosure corporate social responsibility (CSR) practices in Indonesia. The sample of the study consist of annual report of the mining companies listed at Indonesia Stock Exchange during 2015-2017. CSR indexes and financial performance measures were computed for content analysis. This research result shows that 39 mining companies in Indonesia globally do CSR on their companies, but not all of the company’s CSR activities are disclosed in the nonfinancial report. The disclosure level of CRS in mining company is many as 0,3303. This happens because the company reporting on social responsibility and also identify the advantages they have gained through disclosing their social responsibility activities to stakeholders. Which complete information is the foundation for stakeholders to determine the decisions related to the company. The conclusion of the analysis of mining company CSR report disclosed in the annual report of the company can conclude that there are three reasons why a company conducts CSR, among others: The company complies with national policies; Minimizing social, economic, political and environmental impacts; and Value Creation.

Intrinsic value of food chain data

To examine the productivity paradox in the digital era, we explore the impact of digital transformation (DT) on total factor productivity (TFP). Based on a large sample of Chinese manufacturing firms, this study conducts a machine learning approach to examine the effects of DT on TFP at the strategy, technology, and application levels. The results indicate that blockchain, DT strategy, cloud computing, artificial intelligence, DT application, and big data, in ascending order of importance, positively affect TFP. Overall, this study enriches DT literature by verifying the impact of DT indexes on TFP and helps companies make decisions when undertaking DT implementation.

Digital transformation is a global phenomenon, capturing the attention in every industry and spurring major investment. However, digital transformation is not a single objective; it is a multifaceted approach depending on the goals of the respective industry and digital maturity. Thus, digital transformation is the way of change from a monolithic business approach to fully digitized business concepts. Therefore, Chap. 1 introduces us to relevant definitions on digital transformation and their main technological background. One major concern in digital transformation is the confluence of emerging technologies such as Artificial Intelligence, Big Data and Analytics, Blockchain, Cloud Computing and Services, Internet of Things and Industrial Internet of Things, and others. In this regard, Cloud Computing and Services achieve a new generation of Artificial Intelligence, applied in an increasing number of industrial applications with unprecedented results. Besides this, the Internet of Things connects industrial devices and entities within industrial value chains and infrastructure, however, generating terabytes of data every day, which requires Big Data and Analytics to deal with them. Therefore, the digital transformation has a huge impact on industrial control systems and processes, as well as on the Key Performance Indicator (KPI). Moreover, emerging technologies also will have a huge impact on the realization of circular economy in the industrial sectors, a paradigm in today’s digital transformation in industrial, public, and private discussion to reduce the greenhouse effect. Against this background, digital transformation has received a great attention in all industrial, public, and private organizations, which will be fundamentally changing operational business approaches in all sectors. Hence, the transformation of organizations through digitization and emerging technologies can be referred to as a technological wave, such as the third and now the fourth industrial transformation. In this context, the fourth industrial transformation optimizes computerization of the third through digitization, wireless infrastructure networks, intelligent algorithms, and others, which today is known as digital transformation paradigm. Thus, digitization and technologies in digital transformation create, and consequently change, market offerings, business processes, or business models, which result from the use of both. However, the intrinsic complexity of digital transformation also makes cybersecurity awareness a sine qua non. Cybersecurity deals with the presence of cyber attackers with their cybercriminal attack repertoire. Cybercrime causes $ 100 billion and more in damage annually, which means cybercriminal attack prevention has a clear need to address it. However, cybersecurity spans many areas, including, but not limited to, data security, information security, operational security, and others. Moreover, cybersecurity is fundamental to both protecting secret data and information and enabling their defense. Therefore, cybersecurity is understood as a body of knowledge with regard to technologies, processes, and practices designed to protect computer systems, networks, infrastructure resources, and others, from cyber-criminal attacks, damage, manipulation, or unauthorized access. In this context, Chap. 1 introduce in Sect. 1.1 into the manifold aspects of digital transformation with their great impact on industrial, public, and private organizations development, enhancing their business success. Section 1.2 focusses on emerging technologies required and used in digital transformation, presented in twenty Subsections. Against this background, Section 1.3 discusses the challenges of digital transformation in industrial businesses, while Sect. 1.4 introduces applications in digital transformation. Section 1.5 answers the question how to become a leader in digital transformation. Section 1.6 introduces the topic cybersecurity, taking into account knowledge about the interaction of digitization and emerging technologies to gain knowledge about cybersecurity risks through threat event attacks. In this sense, Section 1.6 also focusses on the CIA Triad and the actionable knowledge in cybersecurity that is still paramount. Finally, Section 1.7 describes the challenges of digital transformation to build up a circular economy. Section 1.8 contains comprehensive questions from the topics digital transformation, cybersecurity, and circular economy, followed by references for further reading section.

This systematic literature review explores the digital transformation (DT) and cybersecurity implications for achieving business resilience. DT involves transitioning organizational processes to IT solutions, which can result in significant changes across various aspects of an organization. However, emerging technologies such as artificial intelligence, big data and analytics, blockchain, and cloud computing drive digital transformation worldwide while increasing cybersecurity risks for businesses undergoing this process. This literature survey article highlights the importance of comprehensive knowledge of cybersecurity threats during DT implementation to prevent interruptions due to malicious activities or unauthorized access by attackers aiming at sensitive information alteration, destruction, or extortion from users. Cybersecurity is essential to DT as it protects digital assets from cyber threats. We conducted a systematic literature review using the PRISMA methodology in this research. Our literature review found that DT has increased efficiency and productivity but poses new challenges related to cybersecurity risks, such as data breaches and cyber-attacks. We conclude by discussing future vulnerabilities associated with DT implementation and provide recommendations on how organizations can mitigate these risks through effective cybersecurity measures. The paper recommends a staged cybersecurity readiness framework for business organizations to be prepared to pursue digital transformation.

Purpose: to identify the role of CEOs in the implementation of digital transformation, assess the experience of senior managers of several Russian companies and present the list of common practical recommendations (lessons) to implement digital transformation. Methodology: еight Russian companies which implement digitalization and digital transformation of business were selected for the given study: Gazprom Neft PJSC, SIBUR PJSC, Severstal PJSC, NLMK PJSC, Ilim Group JSC, X5 Group (PJSC “Corporate Center X5”), AlfaStrakhovanie JSC and Raiffeisenbank СJSC. The data was collected through the interviews with the top-ranking company executives (CEOs), as well as through the literature review of the relevant Russian and international academic papers on the role of CEO in the digital transformation of a company. Findings: the analysis of the interviews allowed to formulate five “lessons” that the CEOs considered during the digital transformation including deep immersion in digitalization issues, preparation of the conditions in the company to start the process, choosing technologies with the focus on the particular needs of the business, making the conditions for digital experts and confidence in conflict resolution. These lessons can be used by company managers involved in a similar process. Originality and contribution: this is a first relevant broad study involving CEOs of the leading Russian companies from different businesses that offers a unique set of recommendations for implementing digital transformation in large businesses, which can be also applicable for many managers and entrepreneurs.

Based on the dynamic capability view theory, we examined the impact of digital transformation (DT) on zombie firm formation using a sample of listed Chinese firms. Through textual analysis of firms’ annual reports, we categorized DT into three dimensions: strategy, technology (i.e. artificial intelligence, blockchain, cloud computing, and big data), and application. Then, we employed 11 machine learning algorithms to detect zombie firms, compared the prediction performance, and calculated the contribution of each DT indicator. The results show that DT can effectively curb the formation of zombie firms. Specifically, big data contributes the most to suppressing the prevalence of zombie firms, followed by artificial intelligence, cloud computing, and DT application. Nevertheless, DT strategy and blockchain cannot reduce zombie likelihood. Finally, our research offers valuable insights for policymakers to address the issues of zombie firms.

PurposeThe purpose of this article is to articulate a view of digital transformation (DT) implementation and proposes a framework linking digital transformation strategy (DTS) and business model innovation (BMI), often treated separately.Design/methodology/approachThrough the analysis of the DTS model and the literature of the BMI model, this work proposes, in an inductive methodological approach, a conceptual framework articulating these two items to be put in place for a better implementation of the DT of companies.FindingsTo successfully implement the DT, managers need to master the art of contextualization. It is not always a matter of radical changes and reinventing the whole strategy and business model, but knowing how to update the existing one with the new changes and information. Moreover, an optimal design for implementing DT requires alignment between the strategic and operational aspects to achieve the proposition, the creation and the value capture. In addition, the link between the DTS and the BMI should be iterative and continuous, respecting a Deming wheel-like approach.Practical implicationsThe outcome of this paper can serve as a reference and checklist guiding enterprises to succeed in their DT implementation project. In this regard, this work presents a DTS model to implement the DT, and a BMI instruction but also clarifies how to ensure consistency between all the models to guarantee the DT project alignment and therefore organizational survival.Originality/valueThis work proposes an original conceptual framework linking the DTS and BMI through their building blocks to assure a successful DT implementation.

Purpose: This study investigates the impact of digital business intensity and transformation on organizational ambidexterity and sustainable performance on insurance companies in Indonesia from a dynamic capabilities’ perspective.Design/methodology/approach: The study uses a quantitative approach, purposive sampling used to select insurance companies with assets over IDR 1 trillion. The primary data was obtained directly from the top-level management unit of 120 data questionnaires, namely, 40 Chief Executive Officer (CEO), 40 chief agency officer (CAO) and 40 Chiefs Technology Officer CTO) of each company. The data of each department in a company is aggregated as a single unit of responses from one company. The Structural Equation Model is used as a method to test and analyze data, using SmartPLS software.Purpose: This study aims to investigate the impact of digital business intensity and digital transformation on organizational ambidexterity and sustainable organizational performance in Indonesian insurance firms from a dynamic capability perspective.Design/methodology/approach: Through quantitative approach, purposive sampling is used to select insurance companies with assets exceeding IDR 1 trillion. Primary data was collected through structured questionnaires distributed to 120 top-level executives, including 40 Chief Executive Officers (CEOs), 40 Chief Agency Officers (CAOs), and 40 Chiefs Technology Officers CTOs). Responses from each company were aggregated to form a unified dataset for analysis. Structural Equation Modeling (SEM) was used to analyze the data using SmartPLS software.Findings: The findings reveal that both digital business transformation and government interventions significantly increase organizational ambidexterity. Furthermore, organizational ambidexterity serves as a mediator for the relationship between digital business intensity and government intervention towards sustainable organizational performance. The mediating role of organizational ambidexterity in the relationship for digital business intensity and sustainable organizational performance is positively moderated by digital business intensity.Research limitations/implications: The study applies dynamic capability as a theoretical basis to understand how insurance companies can attain sustainable performance in the digital age. However, it acknowledges limitations, such as the exclusion of external factors like macroeconomic conditions, regulatory changes, and rapid technological advancements. The focus on the insurance sector may also limit the applicability of the findings to other industries with different dynamics.Practical implications: The study provides actionable insights for insurance firms to refine their digital strategies. By developing and validating new metrics to measure digital business intensity and sustainable performance, firms can better assess the effectiveness of their digital transformation. This framework serves as a guide for practitioners to evaluate the impact of digital initiatives on their organizations.Originality/value: This study enriches the organizational literature by demonstrating how digital business intensity and ambidexterity contribute to enhancing sustainable performance in the insurance industry. It also highlights the significance of government policies as external factors influencing organizational dynamics, offering a new perspective on how these elements interact within the context of dynamic capabilities in the financial sector.

The current crisis and the accelerated economic development both require new methods and technologies in order to plan the development of socio-economic and business entities. Digital transformation proved extremely effective in improving economic performance. Digital transformation requires an executable strategy that can help the economy to reach the target state by distributing available resources in priority areas. The economic system is ready for digital transformation if it possesses an appropriate external environment. The article introduces an authentic approach to the analysis of the processes at the core of the regional economy. The research featured the case of the socio-economic system of the Kemerovo region. It included a comprehensive assessment of the region’s viability in creating a favorable business environment at the early stage of digital transformation. To prevent economic stagnation, the leading regional enterprises should introduce capital-intensive technologies and conduct digital business transformation. Such poles of growth can open access to digital technologies for small and medium-sized businesses, thereby ensuring the sustainability and competitiveness of the region. New IT ecosystems are the key to successful digital transformation as they implement a systematic approach to decision-making, as well as such technologies of knowledge-driven economy as predictive analytics, artificial intelligence, big data, cloud computing, etc. The paper also contains recommendations for the development of a consolidated information area on a digital enterprise.