Driving Sustainable Innovation through Digital Transformation: A Behavioural Model of the Upcycling Craft Industry in Indonesia.

Digital transformation has emerged as a key driver of competitiveness across industries, yet its adoption in the upcycling craft sector remains insufficiently explored. Existing studies often focus on large enterprises, leaving a research gap in understanding how micro-scale, resource-constrained upcycling businesses integrate digital technologies, specifically in creative industry. This study addresses this gap by developing the Behavioral-Based Digital Transformation (BBDT) model to investigate behavioral determinants of digital adoption, implementation, and innovation outcomes in Indonesia's sustainability-oriented creative sector. This study employed a sequential exploratory mixed-methods approach. The qualitative phase involved field observations and in-depth interviews with three upcycling craft enterprises, while the quantitative phase surveyed 30 micro-scale upcycling businesses across multiple Indonesian regions. Data were analyzed using thematic coding, NVivo software, and Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed Behavioral-Based Digital Transformation (BBDT) model. Findings indicate that internal and external factors, including leadership commitment, financial capability, and market demand, significantly shape attitudes and behavioral intentions toward digital adoption. Behavioral intentions, in turn, drive digital technology implementation, enhancing operational efficiency, material optimization, and product innovation. Digital adoption acts as both an outcome and enabler of sustainable transformation, with innovation reinforcing continued engagement with technology. The study confirms the mediating role of behavioral intention and underscores the critical importance of human and organizational readiness. These insights offer theoretical contributions to TAM, TPB, and IDT integration and practical guidance for policymakers, creative communities, and micro-enterprise owners.

BackgroundDigital transformation has emerged as a key driver of competitiveness across industries, yet its adoption in the upcycling craft sector remains insufficiently explored. Existing studies often focus on large enterprises, leaving a research gap in understanding how micro-scale, resource-constrained upcycling businesses integrate digital technologies, specifically in creative industry. This study addresses this gap by developing the Behavioral-Based Digital Transformation (BBDT) model to investigate behavioral determinants of digital adoption, implementation, and innovation outcomes in Indonesia’s sustainability-oriented creative sector.MethodThis study employed a sequential exploratory mixed-methods approach. The qualitative phase involved field observations and in-depth interviews with three upcycling craft enterprises, while the quantitative phase surveyed 30 micro-scale upcycling businesses across multiple Indonesian regions. Data were analyzed using thematic coding, NVivo software, and Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed Behavioral-Based Digital Transformation (BBDT) model.Results and ConclusionFindings indicate that internal and external factors, including leadership commitment, financial capability, and market demand, significantly shape attitudes and behavioral intentions toward digital adoption. Behavioral intentions, in turn, drive digital technology implementation, enhancing operational efficiency, material optimization, and product innovation. Digital adoption acts as both an outcome and enabler of sustainable transformation, with innovation reinforcing continued engagement with technology. The study confirms the mediating role of behavioral intention and underscores the critical importance of human and organizational readiness. These insights offer theoretical contributions to TAM, TPB, and IDT integration and practical guidance for policymakers, creative communities, and micro-enterprise owners.

Purpose Manufacturers increasingly resort to digital transformation to shape their competitiveness in the digital economy era, while supply chain (SC) collaborative innovation helps them cope with market uncertainties. However, whether and how digital transformation can facilitate SC collaborative innovation remain unclear. To address this gap, we aims to investigate the effects of digital transformation (strategy and capability) on SC collaborative (process and product) innovation and market performance. Design/methodology/approach We use partial least squares-structural equation modelling (PLS-SEM) with a sample of 210 Chinese manufacturers to investigate the effects of digital transformation (strategy and capability) on SC collaborative (process and product) innovation and market performance. Findings The results show that digital strategy and capability positively impact SC collaborative process and product innovation, which enhances market performance. In addition, SC collaborative innovation mediates the relationship between digital transformation and market performance. Originality/value This study contributes to the literature by identifying how digital transformation drives SC collaborative innovation towards improving market performance and providing practical guidance for enterprises in promoting digital transformation and SC collaborative innovation.

Small and medium-sized enterprises (SMEs) operating in Thailand’s food manufacturing sector face increasing pressure to embrace digital transformation. This study explores the critical factors influencing digital transformation in SMEs, focusing on digital organizational culture, knowledge acquisition, and organizational readiness. Drawing upon the Technology–Organization–Environment (TOE) framework, we investigate the relationships between digital organizational culture, knowledge acquisition, organizational readiness, and digital transformation. Data were collected from 198 food manufacturing SMEs using purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Our findings underscore the pivotal role of digital organizational culture and knowledge acquisition in facilitating digital transformation within Thai SMEs. We also reveal that organizational readiness acts as a full mediator, significantly impacting the success of digital transformation initiatives. Practically, this study highlights the importance of fostering a robust digital organizational culture through collaborative efforts and advocating for knowledge exchange from external sources. Additionally, it emphasizes the need for SMEs to allocate resources and prioritize readiness for change to ensure seamless digital transformation. Theoretically, our research contributes to a deeper understanding of the digital transformation journey within the context of SMEs in the food manufacturing industry. By aligning with the TOE framework, we provide valuable insights tailored to SMEs, offering guidance for navigating the complexities of digital transformation in today’s rapidly evolving business landscape.

Purpose This study aims to explore the intricate relationship between financial literacy, digital transformation, Fintech adoption, competitiveness and sustainable firm performance, particularly focusing on how financial literacy empowers firms in the evolving digital landscape. Leveraging technological innovation systems (TIS) and resource-based view (RBV), this research suggests a model that incorporates these concepts, focusing on the moderating role of financial literacy in essential interactions. Design/methodology/approach This study employed a survey-based methodology, collecting data from employees across five major Pakistani banks. The survey yielded 426 responses, from which 387 valid ones were selected for analysis. The analysis utilized partial least squares-structural equation modeling (PLS-SEM), complemented by the Hayes Process Model for moderated mediation analysis. This approach ensured robust examination of the relationships between the constructs of the proposed model. Findings The study's findings validate that digital transformation significantly enhances sustainable performance, with Fintech adoption and competitiveness acting as crucial mediators. Financial literacy is highlighted as a key moderator, influencing the effects of digital transformation on Fintech adoption and competitiveness, although its direct impact on sustainable performance is less pronounced. This comprehensive analysis underscores the complex interplay among these factors in driving sustainable performance in the banking sector. Originality/value This research enriches the theoretical and practical comprehension of how digital transformation and Fintech integration, underpinned by financial literacy, bolster sustainable business outcomes. It sheds light on the synergy between technology, strategy and organizational success, offering key insights for the banking industry's navigation through the digital era's challenges.

This study explores the multifaceted impact of digital transformation and green initiatives on Vietnamese enterprises, explicitly focusing on the critical role of managerial commitment to information technology. Digital transformation, a catalyst for reshaping operations, strategies, and competitive dynamics, integrates digital technologies into various business aspects. The study investigates key determinants impacting digital transformation and green initiatives: information technology infrastructure, managerial commitment, competitive intensity, employees' digital competencies, and strategic orientation. Utilising Partial Least Squares Structural Equation Modeling (PLS-SEM), the study analyses data from 200 enterprises, highlighting the significant positive effects of these factors on digital transformation and subsequent green initiatives. The findings reveal that managerial commitment and employee digital skills are foundational for successful digital transformation, while competitive intensity and strategic orientation drive green initiatives. This study underscores the necessity of proactive digital managerial and strategic alignment for fostering sustainable and competitive business environments in the digital era. Importantly, it provides practical implications for Vietnamese enterprises, equipping them with actionable insights to navigate the digital and green transformation landscape.

Factors influencing the digital transformation of sales organizations in Indonesia

Purpose This study aims to investigate the relationship between Technological Readiness (TR) and Job Performance (JP), mediated by Digital Health Transformation (DHT) and nurses’ Innovative Work Behavior (IWB). Using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap resamples, the authors assess direct relationships as well as two sequential mediations. The authors present standardized coefficients (β), explained variance (R²), effect sizes (f²) and mediation strength (variance accounted for [VAF]) to quantify practical significance. Design/methodology/approach A quantitative, cross-sectional design was used, with data gathered from 300 registered nurses through a structured survey. The research model was analyzed using PLS-SEM. Constructs were grounded in the Technology–Organization–Environment (TOE) framework and Social Cognitive Theory (SCT). Findings The results substantiate all eight hypothesized relationships. TR is found to significantly predict both DHT and IWB and directly influence JP. Furthermore, DHT positively affects both IWB and JP, while IWB exhibits a robust predictive relationship with JP. Mediation analysis indicates that DHT mediates the relationship between TR and IWB, and IWB mediates the relationship between DHT and JP. These findings validate the proposed integrated model and highlight the importance of behavioral mechanisms in digital transformation. Practical implications Hospital administrators and policymakers should prioritize the enhancement of technological readiness and the fostering of an innovative culture among nursing staff. Effective digital transformation requires both systemic investment and the empowerment of individual behaviors. For health systems in developing countries, infrastructure deficiencies (e.g. intermittent internet and power supply) may weaken downstream connections (DHT → IWB; IWB → JP). The authors delineate strategies for mitigation – including tiered technology readiness-based training, low-bandwidth and offline-first deployment and workflow-integrated enablement – aimed at transforming digital investments into innovative work behaviors and enhanced performance. Originality/value This study contributes a novel, empirically validated model that links technological readiness and innovative behavior to job performance within the digital health-care framework. This study examines an empirically grounded behavioral pathway that connects technological readiness, digital health transformation, innovative work behavior and job performance among nurses in public hospitals. By transcending traditional adoption-intention models, such as the Technology Acceptance Model (Davis, 1989), and enhancing implementation frameworks like the Nonadoption, Abandonment, Scale-up, Spread IT Information Technology (NASSS) framework (Greenhalgh et al., 2017), this research addresses the paucity of empirical evidence regarding the integration of digital innovations into routine practice within resource-constrained health systems (Dionisio et al., 2023).

The rapid digital transformation in the financial sector has prompted micro-entrepreneurs to adapt to increasingly complex financial environments. However, many micro-entrepreneurs, particularly in Indonesia’s furniture sector, still face significant challenges in financial management, a lack of structured planning systems, and limited digital financial literacy. These constraints hinder their ability to adopt digital financial services effectively and weaken their competitiveness in the digital economy. This study addresses the issue by examining the influence of financial literacy on digital financial literacy, with financial planning and control serving as a mediating variable. Using the theory of planned behavior as the theoretical foundation, the research explores how attitudes, perceived behavioral control, and intentions influence financial decision-making in a digital context. A quantitative approach was applied, involving 127 micro-enterpreneurs in the furniture industry as respondents. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that financial literacy has a positive effect on both digital financial literacy and financial planning and control. Furthermore, financial planning and control positively mediate the relationship between financial literacy and digital financial literacy. These findings imply that improving financial literacy alone is not sufficient; it must be complemented with structured financial planning and control to strengthen digital financial competencies. Practically, this suggests that training programs and policy interventions should integrate financial education with digital adoption strategies to enhance the competitiveness and sustainability of micro furniture enterprises. Theoretically, the study contributes by extending the theory of planned behavior to explain financial behavior in the digital transformation era.

The convergence of sustainability and digital transformation has given rise to Green FinTech a rapidly evolving field integrating financial innovation with environmental objectives. Despite its growing importance, limited empirical research has examined how internal organizational mechanisms and inter-organizational dynamics jointly influence digital innovation in Green FinTech, particularly within emerging markets. This study aims to investigate the impact of corporate governance on digital innovation in Green FinTech, while assessing the mediating role of knowledge management and the moderating effect of supply chain collaboration. Drawing on the Resource-Based View (RBV), the research conceptualizes these constructs as strategic capabilities that enable firms to achieve sustainable competitive advantage through innovation. A quantitative, cross-sectional research design was employed, targeting middle and senior-level managers in Pakistan’s commercial banking sector, a critical stakeholder group in green financial transformation. Data were collected through a structured, self-administered questionnaire, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. The results confirm that corporate governance has a significant and positive effect on digital innovation in Green FinTech. Knowledge management partially mediates this relationship, highlighting the critical role of intellectual resource integration in transforming governance structures into innovation outcomes. Supply chain collaboration significantly moderates the governance–innovation link, though in a negative direction, suggesting a complex interaction between internal control mechanisms and external partnerships. These findings contribute to the theoretical understanding of digital sustainability by integrating governance, knowledge, and collaboration within a unified framework. Keywords: Corporate Governance, Digital Innovation, Green FinTech, Knowledge Management, Supply Chain Collaboration

Digital transformation is a strategic element in increasing the competitiveness of Micro and Small Enterprises (MSEs), especially through the adoption of digital payment systems such as QRIS. However, the low level of digital readiness and financial literacy is still the main obstacle in the use of financial technology in Indonesia. This study aims to analyze the influence of financial literacy and the use of QRIS on the performance of MSEs in Denpasar, as well as test the role of digital readiness as a moderation variable. The research method uses a quantitative approach with a survey of 95 MSE actors who use QRIS. Data analysis was carried out using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results of the study show that financial literacy has a positive and significant effect on the performance of MSEs, while the use of QRIS and digital readiness has a positive but not significant effect. Digital readiness negatively moderates the relationship between financial literacy and MSE performance, as well as moderates positively but not significantly the relationship between QRIS utilization and MSE performance. These results confirm that digital readiness that is not balanced with good financial literacy can weaken the positive influence on business performance.

Digital transformation has become a strategic priority for small and medium-sized enterprises (SMEs), particularly in emerging economies where structural constraints intensify the challenges of digitalization. This study analyzes how digital competencies and digital human resource management influence the digital transformation of SMEs in Ecuador, considering the role of organizational culture. A quantitative approach was adopted with a non-experimental, cross-sectional, and explanatory design. Data were collected through an online survey administered between August and October 2025 to a sample of 260 managers and employees of SMEs. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that digital competencies exert a strong effect on digital human resource management and a direct effect on digital transformation. In contrast, digital human resource management does not show a significant direct effect on digital transformation, although it substantially influences organizational culture. Likewise, organizational culture does not moderate the relationship between digital human resource management and digital transformation. These findings highlight the central role of digital competencies as the main driver of digital transformation in SMEs and provide empirical evidence from an underexplored emerging-economy context.

This dissertation explores key factors for digital transformation (DT) success in government sectors, emphasizing the strategic alignment between IT and business strategies. This focus is driven by the high failure rate of DT initiatives, often resulting from misalignment and the delayed recognition of IT's strategic importance by non-IT leaders. The study aims to investigate the interplay between strategic alignment and the socio-technical system in DT, examining how this alignment influences DT success and investigating the mechanism through which strategic alignment is effectively executed. Further, the research assesses the impact of managerial efforts as a precursor to strategic alignment. Additionally, it evaluates the influence of organizational challenges, such as structure and culture, on DT. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM), the research introduces and validates the Government Digital Transformation (GDT) model, demonstrating substantial explanatory power (R² = 0.630) and high predictive power. Key findings highlight strategic alignment, supported by managerial efforts, as essential for DT success. IT governance, along with scalability and adaptability, serve as critical mechanisms boosting the effectiveness of strategic alignment. Contrary to initial expectations, the government's rigid structure and bureaucratic culture did not impede digital transformation, likely due to the mitigating effects of IT governance and proactive leadership engagement. These insights enhance both academic and practical approaches to DT in government sectors.

Digital transformation in industries is essential for industries in order to remain competitive in global world and to achieve sustainable performance. Hence, in order to pursue the driving forces for digital transformation in Pakistan, the present study is being conducted in Textile sector of Pakistan. The drivers of digital transformation are classified in economic, environmental, social, and organizational dimensions. The study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) and a sample size of 124 industrial stakeholders was obtained, and hence the research provides a comprehensive analysis of the influence these drivers have on the adoption o digital technologies in industries. The findings revealed that economic, environmental, and organizational drivers significantly impact digital transformation in the textile sector, and hence it highlights the critical role of financial resources, sustainability initiatives and organizational capabilities within the industry. However, social drivers did not show a significant impact on digital adoption. Additionally, it was concluded that large firms are better at leveraging resources for digital transformation compared to smaller ones. Therefore, conclusion from the study contribute to an understanding of the digital transformation process in developing countries and it offers a practical implications for industry stakeholders and policymakers who are aiming to pave the way for technological advancements within the textile industry of Pakistan.

In the face of accelerating digital transformation and AI-driven innovations in the post-COVID-19 era, the effectiveness of Human Resource Information Systems (HRIS) is critical to organizational resilience and sustainable digital transformation in highly regulated sectors. This study examines how information quality, executive innovativeness, and staff IT capabilities influence HRIS effectiveness and evaluates the mediating role of Information System (IS) Ambidexterity, defined as an organization’s ability to explore and exploit its IS resources concurrently. By confirming the impact of organizational enablers on HRIS effectiveness, the study provides theoretical grounding for digital transformation strategies rooted in Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS was employed for its strength in modeling complex relationships and validating latent constructs in organizational contexts. Empirical data were gathered from 157 HR leaders across financial institutions in Pakistan. The results confirm that the identified enablers significantly impact both IS Ambidexterity and HRIS effectiveness and also emerge as strategic levers for building resilient, data-driven HRIS frameworks. IS Ambidexterity, a relatively underexplored construct in information systems research, enhances the strategic contribution of HRIS by serving as a dynamic capability that enables organizations to adapt and create sustained value in evolving digital environments. HRIS effectiveness contributes to efficiency, agility, strategic responsiveness, and cost optimization in financial institutions. The findings contribute to theory by integrating IS enablers with dynamic capability mediation, enriching the RBV-DCT interplay. This study provides evidence-based insights for developing economies pursuing sustainable digital transformations.