Factors influencing the digital transformation of sales organizations in Indonesia

Abstract

A model that can elaborate the interaction between research variables influencing digital transformation, especially on the performance of sales organizations in Fast-Moving Consumer Goods companies, is fundamental. It allows the decision-makers to take proper action for their companies' optimization. By using Partial Least Squares Structural Equation Modeling (PLS-SEM) to build a model that can describe the interaction between Leadership Model, Organizational Citizenship Behavior, and Sales Management in 346 respondents working in various Fast-moving Consumer Goods companies in Indonesia, the present study found the most respondents were from the Special Capital Region of Jakarta (40.7%). It was found that the Sales Director (50.0%) was the most responsible for digital transformation implementation within the sales organization. Most respondents answered that effectiveness in the company's Internal Business Processes was the primary goal of digital transformation (28.1%). Concerning the success parameters of the digital transformation, Business Processes were the prominent expression of successful implementation (19.4%), with Sales Automation (37.4%) as the main activity in their digital transformation. Three hypotheses with the variables of leadership models, organizational citizenship behavior (OCB), and sales management control, had proven to affect digital transformation positively. Later, in four hypotheses where sales organization performance was set as the dependent variable, it was found that the leadership model influenced organization performance with digital transformation as a mediator. Finally, the last three hypotheses, with variables of sales management control, organizational citizenship behavior, and leadership model, positively influenced organization performance through digital transformation as a mediating variable. Leaders in organizations who carry out digital transformation must ensure that their organizations can respond to disruptions related to the use of digital technology in order for an organization to achieve proper performance.