Digital Transformation Initiatives Research Articles

A comprehensive mixed-methods study on cross-border e-commerce SMEs, digital transformation and dynamic managerial capabilities

The development of the digital trade ecosystem heavily relies on the expansion of cross-border e-commerce (CBEC) platforms. CBEC companies are actively involved in digital transformation (DT) initiatives to bolster their core competencies and market share. E-commerce has experienced rapid growth in recent years, particularly since the global market faced significant disruptions due to the COVID-19 pandemic in 2020. As the market continues to globalize, more Chinese entrepreneurs are shifting their focus towards the international arena. They aim to increase investments in high-tech productivity within their organizations while also concentrating on enhancing their dynamic managerial capabilities to drive transformation within cross-border e-commerce companies. Therefore, the current study examines how organizational DT impacts the management capabilities of Chinese cross-border e-commerce managers from the perspective of dynamic managerial capabilities. The research employed a mixed-method approach. Firstly, a bibliometric analysis was conducted using VOS Viewer and R studio. Data was collected from two databases, Web of Science and Scopus, to analyze publication trends across countries and identify journals with the highest number of publications and citations. This analysis aimed to provide a comprehensive understanding of the context of the subject. Secondly, seven in-depth interviews were conducted using purposive and chain-referral sampling techniques, drawing insights from CEOs based on their real-life experiences with organizational DT. The results of the study revealed that technology has led to the decentralization and flattening of organizational structures. Managers are increasingly using social platforms to connect with experts and potential collaborators. Furthermore, the study highlights the role of psychological support in bolstering dynamic managerial capabilities.

Digital Transformation in MSMEs in Indonesia: The Importance of Commitment to Change

The current landscape of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia faces a critical challenge in the form of digital transformation, necessitating a unified commitment from all organizational stakeholders. This research endeavors to explore the pivotal role of commitment to change in facilitating digital transformation within Indonesian MSMEs. By scrutinizing existing literature and delineating the positive outcomes associated with commitment to change, this study aims to unearth key factors influencing the successful implementation of digital transformation initiatives in MSMEs. Employing a combination of case study and survey methodologies, our research seeks to not only enhance theoretical insights but also contribute practical understandings to support MSMEs in their pursuit of digital transformation. Through an in-depth analysis, this study aspires to provide strategic recommendations that can guide MSMEs toward effective and sustainable digital transformation. Ultimately, this research contributes to the broader discourse on organizational change and digitalization, offering valuable insights for policymakers, academics, and practitioners alike.

Digital Maturity as a Strategy for Advancing Patient Experience in US Hospitals.

Patient experience is globally recognized as an important indicator of health system performance, linked to health system quality and improving patient outcomes. Post COVID-19, health systems have embraced digital health and advanced digital transformation efforts; however, the relationship between digital health and patient experience outcomes is not well-documented. Using HCAHPS hospital survey data to measure patient experience, and HIMSS EMRAM Maturity Model data to measure digital maturity, a cross-sectional design using multivariate analyses examined the impact of digital maturity on patient experience in US hospitals. Our analysis shows that advanced digital maturity in US hospitals is associated with stronger patient experience outcomes, particularly relative to communication with nurses, doctors, and communication about medicines and therapies. The findings suggest that there are significant differences in patient experience associated with teaching versus nonteaching hospitals, urban versus rural hospitals. As hospitals advance and progress digital transformation initiatives, evidence to inform how transformation efforts can engage and advance patient experience will contribute to health system performance well into the future.

Assessing the impact of employee-centric digital transformation initiatives on job performance: The mediating role of digital empowerment

Background: The wave of digital disruption has been experienced across different industries in the fourth industrial revolution, altering processes and procedures as well strategies of many industries. Purpose - As businesses strive to attain supremacy in their respective industries, reliance on technology has become an inevitable tool for sustainability and competitive advantage. Firms are employing novel business strategies and streamlining their operations by adapting to technology in order to transform digitally. Based on the theory of structural empowerment, we assess, from employees' perspective, the efficacy of key employeecentric digital transformation initiatives, namely, digital skills training and access to digital platforms on employees' performance through the mediating role of employee digital empowerment. Design/methodology/approach - Survey data was collected from a sample 214 employees and their 89 direct supervisors across four banking institutions in China for the purpose of this study. Correlation and regression analysis were conducted to test the hypotheses. Findings - The result of the study showed support for the positive impact of both digital skills training and employees' access to digital platforms at the workplace on job performance and also for the mediating role of employee digital empowerment. This study contributes to the empowerment literature by identifying key structural empowerment initiatives in an organization that enhance employee digital empowerment and performance at the workplace as firms transform digitally. Practical implications - The results of the study suggest that firms should view digital transformation as an employee empowerment tool which, when implemented properly, could help enhance employees' performance and the overall organizational goal achievement potentials. Hence, organizations should align their digital transformation strategy with the needs of its human resource in order to ensure overall success of such transformations. Limitations/future research - The study focuses on the banking sector only. Further research could focus on other industries that are equally affected by the waves of digital disruptions.

ОСОБЕННОСТИ ВНЕДРЕНИЯ СТРАТЕГИЙ УПРАВЛЕНИЯ ИЗМЕНЕНИЯМИ В ИНИЦИАТИВАХ ПО ЦИФРОВОЙ ТРАНСФОРМАЦИИ ПРЕДПРИЯТИЙ С ПОЗИЦИЙ СТРАТЕГИЧЕСКОГО УПРАВЛЕНИЯ

This article examines approaches to change management for digital transformation, highlighting its importance from a strategic management perspective. The benefits it offers to business development and the barriers organizations may face when developing and implementing change management strategies for digital transformation initiatives are assessed.

Transforming Financial Management: An RPA Implementation Case Study at PT Telkom Indonesia

PT Telkom Indonesia (Tbk) has addressed the challenges of the digital era through its "5 Bold Moves" strategy, which aims to enhance business sustainability. In alignment with this initiative, the Finance and Risk Management Directorate has adopted Robotic Process Automation (RPA) technology to improve operational efficiency and strengthen its role as a Business Partner. This research analyzes the factors determining the success of RPA implementation in the Directorate. It also explores the challenges and risks involved in the digital transformation process. A qualitative approach is used, including interviews, observations, and data collection from stakeholders involved in RPA, such as strategic planners, managers, and users. The Critical Success Factor (CSF) model for RPA by Plattfaut et al. (2022) served as the theoretical framework that categorizing 32 factors into three areas: RPA in the organization, development RPA, and Operation RPA. The findings reveal that the successful implementation of RPA at PT Telkom Indonesia is contingent upon several factors: RPA in the organization (strategic support, management commitment, organization culture, training, and communication); development RPA (management support, policy compliance, expertise, change management, and documentation); and operations RPA (resource management, compliance, monitoring, and evaluation). This study contributes to the body of knowledge on RPA implementation by providing insights into the challenges and risks faced by large organizations undertaking digital transformation initiatives. The findings can serve as a valuable reference for organizations seeking to leverage RPA to improve operational efficiency and drive innovation.

Clarification of the Present Understanding of the Assessment of an Organization’s Digital Readiness in SMEs

The role of digital transformation (DT) in economic development is a vital and recurring point of research. It is particularly relevant if we consider the high percentage of digital transformation initiatives that fail to deliver the expected results, particularly in Small and Medium Enterprises (SMEs). This paper analyzes what is needed to make this transformation successful from an implementation perspective and, simultaneously, from the standpoint of obtaining the company’s expected results. This phenomenon is even more critical to decipher and understand when we look at the small and medium enterprises that face more significant challenges due to the scarcity of resources and needed skills. This work reviews a large variety of models through an extensive systematic literature review (SLR) that assess the readiness and maturity of the digital transformation of enterprises, with a focus on SMEs, with its primary objectives being (1) to review the existing studies and models that assess an organization’s maturity and readiness in the context of digital transformation, focusing on SMEs; (2) to identify if there are gaps considering the importance of the SMEs; and (3) to propose a standardized set of dimensions that should always be considered in a digital transformation assessment. The outcome of this research provides an essential contribution by identifying apparent gaps in the assessment of digital transformation in SMEs and proposing a scalable and standardized set of categories and subcategories that can be used across any future assessment model. These contributions are even more relevant when referencing minimal deep research in the context of SMEs and Digital Transformation. Doi: 10.28991/ESJ-2023-07-06-025 Full Text: PDF

Development of the Labor Market in the Context of Kazakhstan's Digital Economy and the Concept of Sustainable Development

Relevance: In an era of rapid digital transformation, the labor market in Kazakhstan faces new challenges and opportunities. This research explores the development of the labor market in the context of Kazakhstan's digital economy, with a focus on sustainable development principles. Background: The authors have identified nine scientific schools that can be applied to investigate the development of the labor market in Kazakhstan's digital economy within the framework of sustainable development. Digital transformation is a key focus in this context, as it impacts the economy, society, and the labor market. Methods: The study draws on the principles and approaches of these nine scientific schools to analyze the development of the labor market in Kazakhstan. This includes examining initiatives such as Digital Kazakhstan and various international digital transformation efforts. Results: The authors find that digital transformation initiatives in different countries share common goals, such as enhancing the competitiveness, innovation, and productivity of the manufacturing sector while addressing workforce development and creating new job opportunities. The Digital Kazakhstan initiative also follows these goals, aiming to improve the country's economic competitiveness through digital transformation. Conclusion: By considering the nine scientific schools and their applications, a deeper understanding of the labor market's development in Kazakhstan can be achieved in the context of digital transformation and sustainable development. The authors recommend that Kazakhstan focuses on key areas such as education, workforce development, innovation, entrepreneurship, digital infrastructure, industry-academia collaboration, targeted strategies for key industries, public-private partnerships, supportive regulatory frameworks, social inclusion, sustainability, and international cooperation to successfully develop its labor market and ensure sustainable growth.

Methodology for Evaluating State Organization Readiness for Digital Transformation Based on Movsesyan-Raspopin’s Digital Maturity Model

This article is devoted to the current methodology for assessing the readiness of a state organization for digital transformation in Industry 4.0, based on the Movsesyan-Raspopin digital maturity assessment model.The methodology reveals a systematic understanding of digital transformation and is designed to assess the digital maturity of an organization. The key feature of the methodology is the interrelation of the company’s strategy, strategic goals of digital transformation, strategic priorities of the organization’s development, and the available technologies, which allows determining the ways of its further development and economic effect to achieve maturity in Industry 4.0.The article describes the Movsesyan-Raspopin digital maturity assessment model in detail. The basic design of this model consists of organizational domains and integrating elements and evaluates the current and target levels of digital maturity, as well as prioritizes development directions and a set of digital transformation initiatives. The article also analyzes the concepts of “digital transformation” and “digital maturity”, analyzes existing approaches to assessing digital maturity of Deloitte, Boston Consulting Group, Capgemini Consulting, PwC, and models developed by experts Berghaus S., Back A., Kaltenrieder B., Gimpel H., Newman, M. et al.

How does digital transformation affect sustainable innovation performance? The pivotal roles of digital technology‐business alignment and environmental uncertainty

AbstractDespite the importance of digital transformation in improving sustainable innovation performance, the mechanisms and boundary conditions through which digital transformation affects sustainable innovation performance is unclear. Using the lens of information technology‐enabled organizational capabilities, this study develops a moderated mediation model based on new economic growth theory and information asymmetry theory to examine the impact of digital transformation on sustainable innovation performance. Using a sample of Chinese agriculture firms, our findings reveal that digital transformation positively affects sustainable innovation performance through digital technology‐business alignment, and this indirect effect is stronger when environmental uncertainty is lower. Moreover, environmental uncertainty negatively moderates the relationship between digital transformation and digital technology‐business alignment. Our theoretical explanations and empirical evidence provide insights into how digital transformation initiatives can be leveraged to improve sustainable innovation performance, thus making an important contribution to the related literature.

Perspectives on Digital Transformation Initiatives in the Mechanical Engineering Industry

Companies from the mechanical engineering industry are eager to embrace new technologies in their pursuit of a competitive advantage. However, the complete digitalization of the sector encounters limitations, as certain aspects necessitate human supervision or manual labor. This is where the concepts of Industry 4.0, Industry 5.0, and digital transformation become relevant. The aim of the research presented in this paper was to gather and extract valuable insights and lessons from the experiences of German companies in the plastic extrusion machinery sector with digital transformation (DT). Qualitative interpretative research was used, using in-depth expert interviews with C-level executives. We organized the findings into three categories: (i) DT communication initiatives, including the elimination of paper, CRM solutions, messenger services, home office, and online procurement platforms; (ii) departments and areas most involved, including accounting and procurement, sales and production, and construction; and (iii) cost–benefit perception, including positive assessment, long-term impacts, and variation from company to company. The results provide valuable insights into the progress of DT initiatives in companies operating in the pipe extrusion sector in Germany. Additionally, several DT misconceptions were identified, thereby enriching the DT misconceptions framework that has been intensely discussed in the DT literature.

Upgrading adaptation: How digital transformation promotes organizational resilience

AbstractResearch SummaryThis study explores how digital transformation can promote organizational resilience when incumbent firms face crises. We examine the intersection of digital transformation and resilience‐seeking processes through two longitudinal case studies of incumbent firms designated as “essential businesses” during the COVID‐19 pandemic. We analyze 72 crisis adaptations the firms implemented during the crisis to understand how previously underutilized digital capabilities upgraded each firm's ability to adapt to mitigate stakeholder risks and engage in resilience‐seeking rather than advantage‐ or opportunity‐seeking. We identify five digital capabilities—virtual access, virtual collaboration, data‐driven decision‐making, algorithmic reprogrammability, and assisted decision‐making—that arose from technologies acquired to enable digital transformation before the crisis. We discuss the concept of resilience opportunities and contribute to the literatures on digital transformation and organizational resilience.Managerial SummaryWhile studying the digital transformation of incumbent firms, we found that digital capabilities helped firms adapt during the COVID‐19 pandemic in ways that crisis management plans did not anticipate. As a result, these adaptations accelerated digital transformation initiatives that years of strategic planning had failed to achieve. We explain why the quantum leap in digital transformation helped these firms not only adapt during crisis, but digital adaptation also enabled them to bounce back more resilient and competitive than before the crisis. We show how the pursuit of organizational resilience can be a vital justification for investments in digital transformation. Strategic leaders play a critical role in not only adopting new technologies, but also in helping firms become more adaptive by combining new and legacy technologies.

Lessons from enterprise systems competency centers in adopting digital transformation initiatives: An assemblage approach

Firms are increasingly adopting digital transformation as a strategic priority. However, the path to successful transformation remains uncertain for many organizations. This paper examines the establishment and evolution of competency centers in two case study organizations, historically used in enterprise systems, in addressing the complexity and challenges of digital transformation. The interactions within these competency centers are analyzed through assemblage theory to understand the emergent relations between heterogeneous parts (technology, people, and organization) and the dynamic processes of new configurations. The insights from this research show the critical role of the competency center in any enterprise system's success and how it could continue playing a central role in future digital transformation initiatives. By providing a new lens to examine these issues, the assemblage theory provided a new theoretical perspective to the IS field and a new alternative empirical setting to the organizational literature.

Innovative Marketing Strategies in the Digital Age: Leveraging Technology for Market Dominance

The integration of digital technology has become essential for both markets and society, leading to the emergence of digital transformation as a crucial aspect of business innovation. Nevertheless, the process of digital transformation is intricate, and organizations continue to face challenges in comprehending and effectively capitalizing on its potential benefits. This research examines the present implementation of digital technology within enterprises. The article examines the effects of digital transformation on traditional marketing, specifically how it can alter the conventional process of value creation that marketing is predominantly engaged in. It delves into the impact of digital transformation on several aspects of traditional marketing, such as its role, organization, and tools. The study employed a qualitative research methodology, namely in-depth interviews, to gather data from managers employed in various businesses in Italy. The findings indicate that organizations frequently utilize digital technology, but predominantly rely on conventional tools. Moreover, companies tend to exhibit a higher degree of digitization rather than complete digital transformation. Digital technologies have a significant influence on marketing since they enhance market analytics, pricing strategies, and channel management, while also facilitating the establishment of client interactions to foster value co-creation. Professional abilities are enhanced in numerous ways, while organizational processes are becoming increasingly efficient and adaptable through the utilization of diverse knowledge and cross-functional experiences. This study examines the research and managerial consequences associated with the obstacles and hazards encountered during the execution of digital transformation initiatives.

Factors Influencing Effective Implementation of Public Sector E-procurement in Tanzania: A Case of TANROADS Iringa Regional Office

E-procurement, as a digital transformation initiative, holds significant promise for enhancing efficiency, transparency, and accountability within the public sector. This study assessed the factors that influence the effective implementation of e-procurement in the context of the Tanzania National Roads Agency (TANROADS) Iringa regional office. The research focused on three pivotal factors: e-infrastructure, staff competence, and management support. A quantitative research approach with a descriptive research design was employed, targeting a population of 95 individuals, whereby a sample of 80 respondents was drawn in the study. The data was analysed using descriptive statistics including mean and standard deviation. The findings of this study reveal crucial insights into the determinants of effective e-procurement implementation within the public sector. Firstly, e-infrastructure is found to have a significantly positive influence on effective e-procurement implementation. Secondly, staff competence is identified as a critical driver, with employees displaying a commitment to e-procurement and possessing the necessary education, albeit with room for improvement in IT skills. Lastly, management support is a significant enabler of e-procurement success, with investments in technology infrastructure, user manuals, and budgetary allocations for training, maintenance services, and technical support being essential components. This study concludes that e-infrastructure, staff competence, and management support are pivotal factors in the successful implementation of e-procurement within the public sector. The study recommends continuous training, commitment nurturing, policy review, experience sharing, technological enhancements, financial support, and the recruitment of qualified ICT personnel in driving effective e-procurement implementation

Insights into Digital Transformation Adoption in State-Owned Organizations: A Study from Vietnam

Digital transformation is a critical imperative for organizations worldwide, transcending industries and sectors. This study focuses on the context of state-owned organizations in Vietnam, investigating the key factors influencing the adoption of digital transformation initiatives. The research explores the roles of Perceived Usefulness (PU), Perceived Ease of Use (PEOU), and Willingness to Change (WC) in shaping the adoption process. The study employs a quantitative research design, utilizing a structured questionnaire to collect data from 200 managers and staff members in 20 state-owned organizations that have implemented digital transformation. Statistical analysis, including Partial Least Squares Structural Equation Modeling (PLS-SEM), is employed to test the proposed hypotheses. The findings reveal significant relationships between these key factors and digital transformation adoption. Both PU and PEOU have a positive and significant impact on DTA, indicating that when employees perceive digital tools as beneficial and user-friendly, they are more likely to embrace digital transformation. Moreover, a positive relationship between PEOU and WC highlights the importance of user-friendly technologies in fostering employees' willingness to change. Furthermore, the study underscores the mediating role of WC in amplifying the impact of PU and PEOU on DTA, emphasizing the significance of cultivating a workforce open to change in driving successful digital transformation. These findings offer theoretical insights into the digital transformation adoption process in state-owned organizations and provide practical implications for organizations seeking to navigate the complexities of digital transformation in a rapidly evolving technological landscape.

Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs

The consequences of digital transformation are becoming more visible and pervasive. Despite extensive research on the technological side of the transformation, emphasizing its discontinuous nature, little is known about how managers reframe their cognitive models, reshape routines, and exploit novel organizational structures to implement digital transformation initiatives. We abductively characterize the micro-foundational elements of cognitive, routines, and organizational structure pillars by building on an integrative theoretical framework and looking at how twenty-four Italian SMEs in the agri-food sector pursue digital transformation. Significant differences emerge between SMEs with high and low levels of technological integration, leading to relevant theoretical and managerial implications on how SMEs can successfully navigate digital transformation. Finally, we open up new avenues for future research.

Coopetition, strategy, and business performance in the era of digital transformation using a multi-method approach: Some research implications for strategy and operations management

In the context of digital transformation and its profound implications for business performance, the concept of 'coopetition'—the strategic integration of cooperation and competition—has garnered significant scholarly attention. However, a comprehensive understanding of the pivotal factors driving successful coopetition and their direct influence on business performance remains elusive. This empirical study seeks to bridge this knowledge gap by constructing a hierarchical framework employing a modified Total Interpretive Structural Modeling (M-TISM) approach, further substantiated through rigorous validation via Partial Least Squares Structural Equation Modeling (PLS-SEM) and empirical case analysis. Employing a mixed-methods research design, data is systematically gathered from competitor organizations actively immersed in digital transformation initiatives. The M-TISM framework meticulously captures the intricate interplay and relationships among critical factors, thereby facilitating an exhaustive examination of their combined impact on coopetition outcomes and overall performance within the dynamic landscape of digital transformation. The study employs robust statistical analysis through PLS-SEM, ensuring the methodological integrity of the framework. This developed hierarchical framework, grounded in modified Total Interpretive Structural Modeling (M-TISM) and fortified through PLS-SEM validation and empirical case analyses, significantly contributes to the theoretical underpinnings of coopetition. Noteworthy drivers such as organizational culture, knowledge sharing, trust, resource complementarity, and competitive intensity come to the forefront. Furthermore, the study's empirical insights, derived from case analyses, equip practitioners with actionable guidance for strategically harnessing coopetition in the context of digital transformation. Policymakers, armed with these informed perspectives on the impact of coopetition, are better positioned to craft supportive frameworks that promote optimized performance outcomes within the ever-evolving digital landscape.

Digitalization in Global Trade: Opportunities and Challenges for Investment

This paper explores the evolving landscape of global trade and customs in the context of digitalization and the opportunities and challenges it presents for investment. The rapid advancement of technology and the digital revolution have significantly transformed the way businesses engage in international trade, leading to increased efficiency, streamlined processes, and enhanced global connectivity. However, these advancements also bring forth new complexities, such as cybersecurity risks, data privacy concerns, and regulatory compliance issues. We examine the key areas where investment in digital technologies can drive innovation, efficiency, and competitiveness in global trade and customs. It discusses the potential benefits of implementing technologies such as blockchain, artificial intelligence (AI), Internet of Things (IoT), and cloud computing in areas like supply chain management, customs compliance, trade finance, and risk management. The paper also explores case studies and real-world examples of successful digital transformation initiatives in the global trade and customs domain. The study emphasizes the importance of strategic investment in digital technologies as a means to unlock the full potential of global trade and customs. It provides insights and recommendations for policymakers, industry stakeholders, and investors on navigating the evolving landscape, seizing opportunities, and mitigating risks associated with digitalization in the realm of international trade and customs. Global trade, Customs, Digitalization, Investment, Blockchain, Artificial Intelligence, Supply chain management, Risk management, Cybersecurity

TO DIGITALIZE OR NOT? COVID EFFECT IN MEDIUM SIZED COMPANIES BASED ON THREE CASES

The aim of this exploratory study is to evaluate the level and methods of adaptation of small and medium sized enterprises (SMEs) to the rapid and unforeseen changes during COVID-19 era through digitization and digital transformation. Although the whole world has been affected by the COVID-19 pandemic in general, its impact on the business environment does not show a homogeneous distribution among countries, sectors, and companies. Even if the reasons are variable, the challenges and costs in front of the digitalization of SMEs all over the world are higher than that of large companies. In this context, it is aimed to reveal the knowledge and lessons learned which will form the basis for innovative, managerial, and entrepreneurial practices related to digital transformation initiatives in SMEs. In this study, a series of semi-structured interviews were conducted with the chief information officers and executives responsible for information technologies and digital transformation in three purposively selected small and medium-sized companies in the Aegean region of Türkiye, namely Bakioğlu, Norm, and Ürper respectively. Results for the decision-making processes and practices of the executives regarding the leadership characteristics of information technologies and the decisions taken regarding internal digitalization applications and adaptation to the new work environment during the covid pandemic period are presented. Within the framework of the literature, policy recommendations are provided by analyzing the interaction of their compliance with digital transformation, information management, and corporate governance principles with their strategic management and leadership characteristics. In particular, the interaction between digital maturity levels and digitalization and digital transformation practices is evaluated. In this way, we try to contribute to the advancement of the existing literature by proposing a digital maturity model taking into account the cultural, communication and technological business context.