Abstract
ABSTRACT This study aimed to test the concept derived from resource-based and knowledge-based views to determine the success of digital transformation. The Industrial Revolution 4.0 has changed the way organisations survive and are adaptive in all rapidly changing environments, one of which is the use of social media in business. We investigated how SMEs in creative industries adapt their strategies, resources, and knowledge capabilities to achieve digital transformation through organisational agility. Data was collected from 269 SMEs in Indonesia using a questionnaire and analysed using the SEM (Structural Equation Modelling) statistical software SmartPLS. The results showed that organisational agility succeeded in mediating the influence of knowledge absorption capabilities, social media engagement, and digital resources in strengthening digital transformation. Achieving digital transformation can be successful if SMEs can use social media business and technology as their strategy and knowledge to survive and achieve competitive advantage.
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