Abstract
This study examines whether the quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Furthermore, it also make the first attempt to test the moderating effect of board size on the relationship between quality of information and leverage decision. Malaysian SMEs are used because there are important differences in the magnitude of disclosure requirements among them. A sample size of 100 SMEs has been considered to do the empirical evaluation. The Ordinary Least Squares (OLS) regression was used to analyze the identified firm-specific variables that affect financial structure. In contrast with the traditional view that asymmetric or incomplete information restricts access to external funds, the results indicate that the quality of financial statement information is not significantly related to SME leverage. Board size does not exert any influence on the relationship between quality of information and leverage decision. However, leverage is negatively related to total assets and profitability.
Highlights
Phenomenon of technology disruptive has challenged for incumbent firm to adapt to the changing and dynamical of market due to new business model brought by new entrances (Christensen, 1997)
The results are aligned with the study on disruption technology and innovation conducted by Christensen (1997), Markides (2006), and Khorakian and Salehi (2015) where the incumbent firm should adapt the changing of customer and market to sustain and driving digital transformation. digital leadership has a direct and indirect to dynamic capability mediated by market orientation
This finding brings the implication for incumbent firms to use digital leadership to establish dynamic capability through direct and indirect mediated by market orientation
Summary
Phenomenon of technology disruptive has challenged for incumbent firm to adapt to the changing and dynamical of market due to new business model brought by new entrances (Christensen, 1997). The ranking of digital infrastructure was lack behind compare to Nation competitiveness (IMD, 2017) It is required acceleration of Indonesia firm in digital transformation to support nation competitiveness. Exploring the model digital transformation for incumbent firm in Indonesia are essential to be explored in development of dynamic capability focus on the role of digital leadership. We will discuss the following questions: Does the digital leadership impact directly or indirectly through market orientation or alliance capability on dynamic capability for Indonesia telecommunication industry in digital Transformation?
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
