Technology Organization Environment Research Articles

Digital Transformation in Back-Offices of German Insurance Companies

Digital transformation affects the back offices of incumbent insurance companies. Digital innovations are implemented to be able to offer customers new products and services. We conduct multiple case studies with four German insurance companies. We analyze the impact of digital transformations on company-internal stakeholders with the Technology-Organization-Environment (TOE) framework. We derive 12 influencing factors and corresponding practical implications. Back-office systems are updated using standard software, if available. The goal is to stay flexible for future developments, too. State-of-the-art technologies are tested and only carefully implemented. Necessary reorganizations have significant impacts and are accomplished best with a trusting company culture, good internal communication, and well-trained employees. Efficiency gains from automating routine functions can and are intended to counter labor shortages. After the implementations, skilled employees must handle more specialized and demanding tasks, which cannot be automated easily. Impulses for digital transformation mainly result from continuously changing customer requirements and respective competitive pressure, while regulatory requirements often complicate implementations.

Enablers for Adopting Restriction of Hazardous Substances Directives by Electronic Manufacturing Service Providers

The Electronic Manufacturing Service (EMS) industry contributes significantly to toxic waste generation due to its fabrication processes. Notably, adherence to the Restriction of Hazardous Substances (RoHS) Directive varies amongst EMS providers, despite its aim to reduce electronic waste. This study explores the factors influencing EMS providers’ decision to adopt the RoHS directive, utilizing the technology–organization–environment (TOE) and the human–organization–technology (HOT) fit, or the TOE-HOT fit framework. We validated our framework using partial least squares structural equation modeling (PLS-SEM), based on responses from 379 questionnaires from major EMS providers. The results demonstrated that expert resources, adequate resources, perceived industrial pressure, institutional pressure, and costs were positively associated with RoHS adoption. However, innovation, relative advantage, and verification ability were identified as significant barriers. In particular, innovation in the human dimension was the key determinant for RoHS adoption. Therefore, clear policy instruments and regulations may enhance RoHS adoption by EMS providers. These findings can guide environmental policy definitions in governmental laws and strategies, encouraging EMS providers and other firms to adopt RoHS standards.

A Relevance-Based Technology–Organisation–Environment Model of Critical Success Factors for Digital Procurement Adoption in Chinese Construction Companies

With the emergence of digital transformation, there is an increasing need for Chinese construction companies to adopt digital procurement (D-procurement). However, there is a lack of theoretical foundation to guide and support the adoption practices. This study aims to fill the research gap through the provision of a model by grouping a set of relevance-based critical success factors (CSFs) into the Technology–Organisation–Environment (TOE) framework for D-procurement adoption success (DAS). A case study approach is applied in the research. We selected H Group as it is one of the most representative D-procurement cases in China. The study includes two parts. In the first part, a systematic literature review was conducted, and 17 CSFs were identified from 12 selected studies. By grouping the 17 CSFs into the TOE framework, we put forward a basic CSF–TOE model. In the second part, an in-depth interview was carried out in H Group, where the 17 selected experts were asked to rank the previously identified CSF. Based on their order of relevance, the 17 CSFs were re-organised in the basic CSF–TOE model, and a relevance-based CSF–TOE model was finally proposed. This study is vital for D-procurement adoption because most existing CSF studies are based on the literature and questionnaire surveys, and there is a lack of actual case studies. In addition, this study significantly contributes to the field of D-procurement adoption for construction companies by providing a theoretical framework for practice and a relevance-based CSF–TOE model for research.

How Does Digital Transformation Impact Green Supply Chain Development? An Empirical Analysis Based on the TOE Theoretical Framework

Digital transformation and sustainability are both at the forefront of current supply chain developments. However, the specific mechanisms of how digital transformation and green supply chain development interact still need to be clarified, which can help supply chain business operators to enhance supply chain sustainability more effectively. This paper focuses on how the companies’ organization structure and the socio-economic environment interact with digital technologies under the process of green supply chain development. Based on the “Technology–Organization–Environment” (TOE) framework, this paper analyze how digital transformation can drive green supply chain development. To test the TOE theoretical analysis framework, this paper calculates the digital transformation and green supply chain development index at the provincial level in China and conducts an empirical study. The main findings and implications of this paper can be summarized in the following aspects: First, according to the TOE theory, the external environment dimensions, such as the market and policy environments, affect the role of digital technology in promoting GSC development. Second, in the organizational dimensions, labor–capital relations, company size, and ownership factors can all affect the contribution of digital transformation to green supply chains. Third, there are differences in the impact of different types of digitization technologies on GSC development.

B2B digital platform adoption by SMEs and large firms: Pathways and pitfalls

The ongoing paradigm shift towards two-sided and multi-sided platforms is reshaping business transactions and collaborations worldwide. Such digital platforms have found widespread acceptance in business-to-business markets, serving as catalysts for strategic networking, transparency, and traceability, especially in sourcing activities that demand strategic solutions for supplier selection and collaboration. Nonetheless, the variables influencing platform adoption in small and medium-sized enterprises (SMEs) and large firms remain somewhat opaque. In this study, the social network theory (SNT), diffusion of innovation (DOI) theory, and technology–organisation–environment (TOE) framework were used as analytical lenses. Drawing from a sample of 318 responses from supply chain managers, this study employs a fuzzy-set qualitative comparative analysis (fsQCA) to identify 15 configurations related to the adoption of two-sided platforms in both SMEs and large manufacturing firms. The results underscore that SMEs' drive for platform adoption is primarily anchored in their need for flexible, fluid networks, thus reinforcing the value of two-sided platforms in cultivating robust supplier relationships. In contrast, large firms are driven by potential advantages in efficiency and transactional security. However, the low adoption intention in both SMEs and large firms can be attributed to perceived barriers and a lack of perceived benefits, respectively.

How Technological, Organizational, and Environmental Factors Drive Enterprise Digital Innovation: Analysis Based on the Dynamic FsQCA Approach

Improving the level of digital industry innovation is of great significance to enhance the competitiveness of China’s digital industry and improve the sustainable development advantages of the digital economy. Based on the technology–organization–environment framework (TOE framework), this paper establishes a multi-stage configuration analysis model of factors affecting enterprises’ digital innovation, selects six antecedent variables from technology, organization, and environment, including R&D investment, high-level talents, organizational size, top management team heterogeneity, industrial development speed, and regional digitalization level, and explores the driving path for improving enterprise digital innovation intention and digital innovation performance under the influence of multi-factor combinations. The results are presented that single factors or single dimensions struggle to stimulate high digital innovation, and the combination configuration of multiple factors has a significant impact. The configuration paths that drive high digital innovation intention include the technology–environment type (TE type) driven by technological and environmental factors, organization–environment type (OE type) driven by organizational and environmental factors and technology–organization–environment type (TOE type) driven by technological, organizational, and environmental factors; the configuration paths that drive high digital innovation performance include the technology–organization type (TO type) driven by technological and organizational factors, organization–environment type (OE type) driven by organizational and environmental factors. With the evolution of time, there are configuration solutions with relatively high stability, such as the TE type and OE type that drive high digital innovation intention, and the TO type that drives high digital innovation performance. The results provide a reference for revealing the key influencing factors and driving paths of enterprise digital innovation, and improving the vitality and output level of enterprise digital innovation.

Digital marketing adoption by small travel agencies: a comprehensive PLS-SEM model using reflective and higher-order formative constructs

PurposeThis study examines the vital factors that influence digital marketing adoption among small travel agencies (brick-and-mortar) and the impact of digital marketing adoption on organizational performance modeled as a formative-formative HOC.Design/methodology/approachThis empirical study builds on diffusion of innovation (DOI) theory and technology-organization-environment (TOE) framework to identify the factors of digital marketing adoption by small travel agencies. Data were collected from 226 small travel agents in India using purposive and snowball sampling. Partial least square-structural equation modelling (PLS-SEM) is used to analyze the reflectively and formatively measured constructs.FindingsThe findings reveal significant constructs of digital marketing adoption by small travel agencies. The study also establishes the positive impact of digital marketing adoption on organizational performance. Trust partially mediates the impact of technological factors (relative advantage, security concerns) and organizational factor (knowledge) on digital marketing adoption.Research limitations/implicationsThe study provides methodological contribution to the literature by applying confirmatory composite analysis (CCA) approach in PLS-SEM. The study contributes to the literature by integrating DOI theory and TOE framework. The study enriches the literature on trust as it recognizes the crucial role of trust as a mediating construct.Practical implicationsThe study provides useful implications to marketing practitioners of small travel agencies. The study shows strong predictive capacity and can be generalized throughout diverse samples.Originality/valueThe study adds value to the literature as it explores the digital marketing adoption among the under researched small travel agencies by integrating DOI-TOE theory. The study uniquely proposes and validates organizational performance as a formative-formative higher-order construct.

Factors influencing business intelligence adoption by higher education institutions

Business intelligence (BI) has become increasingly popular among executives in various industries owing to its potential to facilitate informed decision-making. Nevertheless, its adoption is not well explored in higher education institutions (HEIs), where a large volume of data is generated. Therefore, this study aims to investigate the key drivers that underlie BI adoption in HEIs, leveraging the conceptual lens of the Technology-Organization-Environment (TOE) framework. To do so, prominent factors in TOE contexts have been gleaned from related BI literature. The study used PLS-SEM modelling to analyze quantitative data collected from 387 individuals in various management roles within HEIs in Jordan. The results showed that top management support, information culture, compatibility, organizational readiness, relative advantages, perceived Complexity, information quality, and vendor selection are significant determinants of BA in HEIs—competitive pressure, which was statistically insignificant. The results further revealed that information culture emerges as the strongest predictor, while Complexity exerts a significant negative effect on BI, demonstrating that Complexity acts as a key hurdle in BI adoption. The outcomes of this study offer valuable guidance for HEIs executives concerning the antecedents to consider for successful BI implementation.

Exploring the factors, affordances and constraints outlining the implementation of Artificial Intelligence in public sector organizations

Artificial Intelligence (AI) is viewed as having great potential for the public sector to improve the management of internal activities and the delivery of public services. However, realizing its potential depends on the proper implementation of the technology, which is characterized by unique factors, that afford or constrain its use. What these factors are and how they affect AI implementation is still poorly understood, and scholars call for studies to add empirical evidence to the existing knowledge. This study relies on a case study methodology and, by adopting an abductive approach, applies a double theoretical perspective: the Technology-Organization-Environment (TOE) framework and the Technology Affordances and Constraints Theory (TACT). Drawing on these combined lenses, we develop a conceptual framework that extends previous studies by showing how AI implementation is the result of a combination of contextual factors that are deeply interrelated and, specifically, how AI-related factors bring new affordances and constraints to the application domain.

Antecedents of big data analytics (BDA) adoption in private firms: a sequential explanatory approach

PurposeThis study aims to examine the key antecedents influencing the private firm’s intention to adopt big data analytics (BDA) in developing economies. To do so, the study follows the sequential explanatory approach.Design/methodology/approachTo test the hypothesized model that draws on the technology–organization–environment (TOE) framework paired with the diffusion of innovation (DOI) theory, a purposive sampling technique was applied to gather data from 156 IT and management domain experts from the private firms that intend to adopt BDA and operate in Pakistan’s service industry, including telecommunication, information technology, agriculture, and e-commerce. The data were analysed using the partial least squares structural equations modelling (PLS-SEM) technique and complemented with qualitative analysis of 10 semi-structured interviews in NVIVO 12 based on grounded theory.FindingsThe empirical findings revealed that the two constructs – perceived benefits and top management support – are the powerful drivers of a firm’s intention to adopt BDA in the private sector, whereas IT infrastructure, data quality, technological complexity and financial readiness, along with the moderators, BDA adoption of competitors and government policy and regulation, do not significantly influence the intention. In addition, the qualitative analysis validates and further complements the SEM findings.Originality/valueUnlike the previous studies on technology adoption, this study proposed a unique research model with contextualized indicators to measure the constructs relevant to private firms, based on the TOE framework and DOI theory, to investigate the causal relationship between drivers and intention. Furthermore, the findings of PLS-SEM were complemented by qualitative analysis to validate the causation. The findings of this study have both theoretical and practical implications.

Technology-pushed, market-pulled, or government-driven? The adoption of industry 4.0 technologies in a developing economy

PurposeThis study aims to investigate the motivations for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Specifically, the effects of relative advantage of the technologies, competitive pressure, and government support on the adoption are explored. Moreover, the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies is examined.Design/methodology/approachA research model is developed based on the technology-organization-environment (TOE) framework strengthened by institutional theory. Structural equation modeling (SEM) approach is employed to evaluate the model using data obtained from 215 manufacturing firms through a cross-industry survey. Additionally, a post-hoc analysis is conducted using cluster analysis and ANOVA.FindingsThe results show that competitive pressure and government support significantly promote top management support, which in turn contributes to the adoption of Industry 4.0 technologies. Relative advantage of the technologies is not significantly related to the adoption.Research limitations/implicationsThis study does not explore the relationship between technology type and the specific needs of manufacturing firms. Future researchers can conduct a more comprehensive analysis by examining how different technology types align with the unique needs of individual companies.Practical implicationsThe findings of this study have implications for both policymakers and managers. Policymakers can leverage these insights to understand the underlying motivations behind manufacturing firms' adoption of Industry 4.0 technologies and develop promoting policies. In turn, managers should keep an eye on government policies and utilize government support to facilitate technology adoption.Originality/valueThis study uncovers the underlying motivations—government support and competitive pressure—for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Meanwhile, it complements previous research by showing the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies.

Examining the effects of technology–organization–environment framework on operational performance through supply chain integration of the firm

PurposeThis paper aims to investigate the role of organizational and technological enablers and their arrangement and alignment with the external environment to facilitate supply chain integration (SCI), which consequently improves operational performance.Design/methodology/approachThe paper uses a structural equation modeling approach and the data from 307 manufacturing firms from the International Manufacturing Strategy Survey version VI for hypotheses testing.FindingsThe findings of the study reveal that (1) the alignment and particular arrangement of the sociotechnical organizational factors enable the SCI of a firm, (2) suitable organizational arrangements help in leveraging SCI under environmental pressures, and (3) SCI leverages the relationship between sociotechnical organizational factors and operational performance of the firm.Practical implicationsThis paper informs managers that SCI leverages the operational performance of firms under heightened environmental pressures. Developing suitable manufacturing technologies infrastructure followed by organizational practices aligned with the manufacturing technologies make it easier to realize SCI.Originality/valueThis study explores the interaction of technological, organizational, and environmental factors as driving and enabling factors that help achieve SCI. Firms that develop an open and collaborative environment and use communication and integrative technologies to complement their work practices better cope with external pressures. These modern forms of working and the use of technologies facilitate SCI and leverage it effectively to positively impact firm performance.

Digital organisational restructuring on business value creation in SMEs during the COVID-19 pandemic

ABSTRACT During the COVID-19 pandemic, many small and medium-sized enterprises (SMEs) have been challenged to survive and maintain their market share. Here we investigated vital factors that drive organisations toward digital organisational restructuring (DOR) and examined its impacts on new value creation in the era of COVID-19. We confirmed the theoretical model through a literature review and industrial interviews, further a structural equation modelling analysis of survey responses collected from SMEs in Vietnam. The findings reveal the components of the technology–organisation–environment (TOE) framework and the unified theory of acceptance and use of technology (UTAUT) model drive firms to restructure themselves to create new value digitally. This research shows that critical TOE drivers, DOR, and other constructs influence firms’ value creation. This study improves the understanding of value creation within firms. It extends the UTAUT model by integrating the TOE framework, emphasising DOR’s importance as a critical element of successful digital transformation. Its contribution lies in illustrating how digitalisation facilitates value creation through DOR while providing new forms of visibility management.

Barrier identification, analysis and solutions of blockchain adoption in construction: a fuzzy DEMATEL and TOE integrated method

PurposeBlockchain has the potential to facilitate a paradigm shift in the construction industry toward effectiveness, transparency and collaboration. However, there is currently a paucity of empirical evidence from real-world construction projects. This study aims to systematically review blockchain adoption barriers, investigate critical ones and propose corresponding solutions.Design/methodology/approachAn integrated method was adopted in this research based on the technology–organization–environment (TOE) theory and fuzzy decision-making trial and evaluation laboratory (DEMATEL) approach. Blockchain adoption barriers were first presented using the TOE framework. Then, key barriers were identified based on the importance and causality analysis in the fuzzy DEMATEL. Several suggestions were proposed to facilitate blockchain diffusion from the standpoints of the government, the industry and construction organizations.FindingsThe results highlighted seven key barriers. Specifically, the construction industry is more concerned with environmental barriers, such as policy uncertainties (E2) and technology maturity (E3), while most technical barriers are causal factors, such as “interoperability (T4)” and “smart contracts' security (T2)”.Practical implicationsThis study contributes to a better understanding of the problem associated with blockchain implementation and provides policymakers with recommendations.Originality/valueIdentified TOE barriers lay the groundwork for theoretical observations to comprehend the blockchain adoption problem. This research also applied the fuzzy method to blockchain adoption barrier analysis, which can reduce the uncertainty and subjectivity in expert evaluations with a small sample.

Exploring the mechanism of digital transformation empowering green innovation in construction enterprises

Amid depleting resources and environmental constraints worldwide, green innovation is being considered key to achieving sustainable development. The construction industry has been resistant to technological change and generating a large amount of wasted energy; green innovation should compensate for these shortcomings. The emergence of new and powerful digital transformations has provided several green innovation opportunities to the construction industry. However, the mechanism by which digital transformation can drive this green innovation has not been thoroughly investigated. This study aims to elucidate the effects of digital transformation on green innovation by surveying construction enterprises. Therefore, a model based on the technology–organization–environment framework was developed to uncover the factors of digital transformation related to green innovation in the construction industry. Subsequently, it reviews the literature and proposes postulates to construct a relevant conceptual model. Data of 257 employees from construction enterprises were analyzed using the partial least squares structural equation model (PLS-SEM) and via fuzzy set qualitative comparative analysis (fsQCA). The PLS-SEM results show that all the nine variables positively affected the green innovation behavior; moreover, these results evidently confirmed the influence of policy environment, market environment, and digital culture on green innovation. fsQCA presented four configurations for promoting the green innovation of construction enterprises under multiple antecedent conditions, wherein digital infrastructure was considered a core factor in all configurations. These conclusions provide beneficial insights for construction enterprises to implement green innovation practices.

Understanding the challenges of 5G deployment in India

PurposeThis study aims to understand the challenges of 5G deployment in India from the perspectives of telecom operators. These challenges are also mapped to different contexts within the technological-organizational-environmental (TOE) framework.Design/methodology/approachThe study uses a qualitative approach comprising in-depth semi-structured interviews of employees working in telecom companies in India. Thematic analysis is used to analyse the qualitative data.FindingsThe author has identified nine challenges that are categorized under three dimensions of the TOE framework. Specifically, the findings indicate three technological challenges: hardware/device challenges, security concerns and limited use cases; two organization challenges: financial challenges and lack of skilled workforce; and four environmental challenges: inadequate infrastructure, regulatory and administrative challenges, consumers’ attitudes and competitive market conditions.Practical implicationsThe results of this study would help understand the key factors that can act as barriers to the 5G rollout in India. Based on the findings of the study, the government and regulatory bodies could design conducive policies and regulatory frameworks to successfully deploy 5G in India.Originality/valueThe study is one of the very few studies to empirically examine the telecom operators’ perspectives on the challenges of 5G deployment in India. The study contributes to the TOE framework as its application in the context of identifying barriers to 5G deployment is probably for the first time.

A Systematic Review and Proposition of an E-Commerce Framework for African SMES: Integrating TAM and TPB into TOE Framework

This study offers a systematic review to identify the facilitators and barriers to African Small and Medium Enterprises (SMEs’) adoption of e-commerce and proposes an integrated e-commerce adoption framework. The review integrates two widely used theoretical frameworks, the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB), into the Technology-Organization-Environment (TOE) framework. Following a rigorous literature search and careful evaluation in accordance with the PRISMA-P standards, 21 studies that were published between 2012 and 2022 were selected for inclusion in this study. The findings identified several key facilitators and barriers to e-commerce adoption. Facilitators include perceived ease of use (PEOU), perceived usefulness (PU), subjective norms (SU), perceived behavioral control (PBC), compatibility, organizational readiness for change, external support, security and trust, market and competitive pressures, access to reliable internet connectivity, social and cultural factors, economic factors, government policies, and education and training. Barriers include perceived technology trust, perceived relative advantage, firm size, senior management support, attitude, SME owners' IT skills, consumer readiness, etc. The proposed integrated TOE framework will offer valuable insights for policymakers, researchers, and practitioners seeking to enhance e-commerce adoption and its benefits for African SMEs. The study's discussion provides insights into the patterns and trends identified, their theoretical implications, and practical recommendations for policymakers and SMEs in Africa.

Artificial intelligence adoption among human resource professionals: Does market turbulence play a role?

AbstractDrawing from the Technology Acceptance Model (TAM) and Technology‐Organization‐Environment (TOE) framework, this study investigates the factors that influence the adoption of artificial intelligence (AI) among human resource (HR) professionals in the tourism organizations of Malaysia. Responses were collected from 389 HR employees working at tourism organizations. Based on a partial least squares‐structural equation modeling (PLS‐SEM) analysis, results revealed that perceived ease of use, perceived usefulness, technology competency, top management support, and competitive pressure have significantly positive impacts on AI adoption in the tourism industry in Malaysia. The study's contribution to the TAM and TOE models is the inclusion of market turbulence as a moderating factor, which has been found to be a significant moderator as it enhances the understanding of HR practitioners and others regarding the factors that are most influential in AI adoption among HR employees in the tourism industry. The model developed in this study highlights how market turbulence can foster the relationship between AI adoption and organizations. In addition to the managerial and theoretical implications, the study also discusses its limitations and outlines directions for future research.

Green Environmental Management System to Support Environmental Performance: What Factors Influence SMEs to Adopt Green Innovations?

In the current era of high environmental uncertainty, the advancement of green technologies has led to innovative practices in the manufacturing sector, becoming the preferred approach for achieving sustainable development in today’s business markets. Manufacturing firms require green innovation to improve their environmental performance and monitor operations effectively, but the adoption and implementation of these innovations is still low among manufacturing industries. To bridge this gap, a study was conducted using resource-based view (RBV) theory and the technology–organization–environment (TOE) framework to develop and validate a model that encourages firms to adopt green innovation. A survey was administered to 179 respondents from manufacturing firms, and the data were analyzed using structural equation modeling (PLS-SEM). The integrated constructs of the model—perceived benefits, top management support, coercive pressure, normative pressure, and mimetic pressure—all predicted green management accounting practices. Additionally, the study found that green management accounting practices directly and significantly impacted green environmental performance. The developed model provides clear implications for decision makers, highlighting the importance of adopting green practices and innovative technologies in order to enhance environmental performance. Advanced green technologies have shown a significant connection between green management accounting practices and environmental performance, particularly in developing economies.

Factors Affecting the Adoption of Cloud for Software Development: A Case from Turkey

Cloud-based solutions for software development activities have been emerging in the last decade. This study aims to develop a hybrid technology adoption model for cloud use in software development activities. It is based on Technology Acceptance Model (TAM), Technology–Organization–Environment (TOE) framework, and the proposed extension Personal–Organization–Project (POP) structure. The methodology selected is a questionnaire-based survey and data are collected through personally administered questionnaire sessions with developers and managers, resulting in 268 responses regarding 84 software development projects from 30 organizations in Turkey, selected by considering company and project sizes and geographical proximity to allow face-to-face response collection. Structural Equation Modeling (SEM) is used for statistical evaluation and hypothesis testing. The final model was reached upon modifications and it was found to explain the intention to adopt and use the cloud for software development meaningfully. To the best of our knowledge, this is the first study to identify and understand factors that affect the intention of developing software on the cloud. The developed hybrid model was validated to be used in further technology adoption studies. Upon modifying the conceptual model and discovering new relations, a novel model is proposed to draw the relationships between the identified factors and the actual use, intention to use and perceived suitability. Practical and social implications are drawn from the results to help organizations and individuals make decisions on cloud adoption for software development.