Abstract
PurposeBusiness process management (BPM) has been discussed in much literature as a crucial approach to achieve firm-enterprise business performance, however in term of digital business transformation to face the current digital enterprise business era, there is still much to be explored. Drawing sociotechnical perspective of ETHICS theory, the study develops and conceptualize information technologies/systems (IT/IS) proactive capability and socialization-codification knowledge process that produce business transformation process in digital-based era.Design/methodology/approachOf the 173 company-enterprise respondents in Indonesia, the authors empirically test and validate the conceptual model using structural equation model tool-SmartPLS and SPSS statistical. The enterprise respondents were manufactures industry, construction services, hardware and software, plantation and agriculture, financial and insurance services, and other retail trade.FindingsThe authors found different findings of mediating effect and direct relationship effect. Socialization knowledge process has directly influence IT/IS proactive capability and enterprise digital business transformation. Codification knowledge process has successfully support IT/IS proactive capability, but unsupported correlation on enterprise digital business transformation. Also, IT/IS proactive capability positively influence enterprise digital business transformation. Enterprise business process suffers when the firm transform their business process into digital-based only using codification knowledge practices because documented knowledge (codification type) is not strong enough to help company in the way of enterprise digital business transformation. Mediating role show IT/IS proactive capability is crucial approach for enterprise business transformation to maximize codification knowledge practices. The findings present one fully supported results of mediation role through IT/IS proactive capability. A stronger support for enterprise IT/IS strategy in company, a high opportunity for codification knowledge practices to improve the digital ways to transform the enterprise business process. In short, the results can guide enterprise managers on how to manage their knowledge resources and maximizing emerging technologies to achieve enterprise digital business transformation.Research limitations/implicationsThe authors acknowledged that future studies would be worthwhile to create, develop and strengthen the model and its related foundation. Future research may try different concept/theory that applicable in enterprise digital business transformation. Also, an opportunity for future study is how enterprise digital business transformation in different context of industries with the current emerging technologies (e.g. IoT, big data, AI).Originality/valueThis study offers a theoretical and conceptual framework to the applicable digital-based within enterprise business transformation context. A knowledge/novel contribution of this study is the integration of a sociotechnical that highly relevant and drives enterprise digital business transformation. This study also is an effort to combine some areas such as business transformation strategy, knowledge-intensive business services, knowledge management and IT/IS.
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