The Manifestation Of Digital Transformation Concept In Indonesian Logistic Firms

Muhammad Taufani; Anton Wachidin Widjaja

doi:10.24912/jm.v27i3.1383

Authors

Muhammad Taufani Faculty of Economics and Business, Universitas Indonesia, Depok
Anton Wachidin Widjaja Faculty of Business, President University, Bekasi

DOI:

https://doi.org/10.24912/jm.v27i3.1383

Keywords: Resource Orchestration; Digital Entrepreneurship; Organizational Learning Capabilities; Innovation Capabilities; Logistic Firm Performance.

Abstract

Digital transformation has become an important challenge for logistic firms to achieve competitive advantages. However, the digitization process's implications on a firm's performance still need to be fully understood since transitioning from one method to another creates specific challenges. This study examines the effects of digital transformation on logistic firm performance in Indonesia and looks at the process of organizational learning and innovation as determinants of digital transformation. This study uses a quantitative method with data from 165 respondents of logistic firms that have implemented digital technology in their business operations. The PLS method is used as a data analysis method. Results showed that digital transformation positively and significantly affects logistic firm performance. It was also found that organizational innovation significantly affects digital transformation, ultimately affecting logistic firm performance. Meanwhile, organizational learning capabilities showed no direct effects on digital transformation.

Author Biographies

Muhammad Taufani, Faculty of Economics and Business, Universitas Indonesia, Depok

muhammad.taufani01@ui.ac.id

Anton Wachidin Widjaja, Faculty of Business, President University, Bekasi

wachidin.anton@president.ac.id

References

Akdoğan, M.S. and Durak, A. (2016). Logistic And Marketing Performances Of Logistics Companies: A Comparison Between Germany And Turkey. Procedia - Social and Behavioral Sciences, 576–586. https://doi.org/https://doi.org/10.1016/j.sbspro.2016.11.084.

Alerasoul, S. A., Afeltra, G., Hakala, H., Minelli, E., and Strozzi, F. (2021). Organisational Learning, Learning Organisation, And Learning Orientation: An Integrative Review And Framework. Human Resource Management Review. https://doi.org/https://doi.org/10.1016/j.hrmr.2021.100854.

AlMulhim, A. F. (2021). Smart Supply Chain And Firm Performance: The Role Of Digital Technologies. Business Process Management Journal, 27(5), 1353–1372. https://doi.org/https://doi.org/10.1108/bpmj-12-2020-0573.

Antonizzi, J., and Smuts, H. (2020). The Characteristics Of Digital Entrepreneurship And Digital Transformation: A Systematic Literature Review. Lecture Notes in Computer Science, 239–251. https://doi.org/https://doi.org/10.1007/978-3-030-44999-5_20.

Beliaeva, T., Ferasso, M., Kraus, S., and Damke, E. J. (2019). Dynamics Of Digital Entrepreneurship And The Innovation Ecosystem. International Journal of Entrepreneurial Behavior & Research, 26(2), 266–284. https://doi.org/https://doi.org/10.1108/ijebr-06-2019-0397.

Büyüközkan, G., and Göçer, F. (2018). Digital Supply Chain: Literature Review And A Proposed Framework For Future Research. Computers in Industry, 97, 157–177. https://doi.org/https://doi.org/10.1016/j.compind.2018.02.010.

Carnes, C. M., Chirico, F., Hitt, M. A., Huh, D. W., and Pisano, V. (2017). Resource Orchestration For Innovation: Structuring And Bundling Resources In Growth- And Maturity-Stage Firms. Long Range Planning, 50(4), 472–486. https://doi.org/https://doi.org/10.1016/j.lrp.2016.07.003.

Celtekligil, K., and Adiguzel, Z. (2019). Analysis Of The Effect Of Innovation Strategy And Technological Turbulence On Competitive Capabilities And Organizational Innovativeness In Technology Firms. Procedia Computer Science, 158, 772–780. https://doi.org/https://doi.org/10.1016/j.procs.2019.09.114.

Chen, H., and Tian, Z. (2022). Environmental Uncertainty, Resource Orchestration And Digital Transformation: A fuzzy-set QCA approach. Journal of Business Research, 139, 184–193. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.09.048.

Cichosz, M., Wallenburg, C. M., and Knemeyer, A. M. (2020). Digital Transformation at Logistics Service Providers: Barriers, Success Factors And Leading Practices. The International Journal of Logistics Management, 31(2), 209–238. https://doi.org/https://doi.org/10.1108/ijlm-08-2019-0229.

Eller, R., Alford, P., Kallmünzer, A., and Peters, M. (2020). Antecedents, Consequences, And Challenges Of Small And Medium-Sized Enterprise Digitalization. Journal of Business Research, 112, 119–127. https://doi.org/https://doi.org/10.1016/j.jbusres.2020.03.004.

Ferreira, J. J. M., Fernandes, C. I., and Ferreira, F. A. F. (2019). To Be Or Not To Be Digital, That Is The Question: Firm Innovation And Performance. Journal of Business Research, 101, 583–590. https://doi.org/https://doi.org/10.1016/j.jbusres.2018.11.013.

Franco, M., Godinho, L., and Rodrigues, M. (2021). Exploring The Influence Of Digital Entrepreneurship On SME Digitalization And Management. Small Enterprise Research, 28(3), 269–292. https://doi.org/https://doi.org/10.1080/13215906.2021.1938651.

Gomes, G., Seman, L. O., and De Montreuil Carmona, L. J. (2020). Service Innovation Through Transformational Leadership, Work-Life Balance, And Organisational Learning Capability. Technology Analysis & Strategic Management, 33(4), 365–378. https://doi.org/https://doi.org/10.1080/09537325.2020.1814953.

Hair, J. F. (2017). Multivariate Data Analysis. Pearson.

Halpern, N., Mwesiumo, D., Suau-Sanchez, P., Budd, T., and Bråthen, S. (2021). Ready For Digital Transformation? The Effect Of Organisational Readiness, Innovation, Airport Size And Ownership On Digital Change At Airports. Journal of Air Transport Management, 101949(90). https://doi.org/https://doi.org/10.1016/j.jairtraman.2020.101949.

Hennelly, P. A., Srai, J. S., Graham, G., and Fosso Wamba, S. (2019). Rethinking Supply Chains In The Age Of Digitalization. Production Planning & Control, 31(2–3), 93–95. https://doi.org/https://doi.org/10.1080/09537287.2019.1631469.

Hernandez, J., and Wagner, S. (2022). Customer Experience in The New Reality. Customer Experience in the New Reality - Global Customer Experience Excellence Research: The COVID-19 Special Edition. KPMG. https://home.kpmg/xx/en/home/insights/2020/07/customer-experience-in-the-new-reality.html.

Irfani, D.D., Wibisono, D., and Basri, M. . (2021). Logistics Performance Measurement Framework For Companies With Multiple Roles. Measuring Business Excellence, 23(2), 93–109. https://doi.org/https://doi.org/10.1108/MBE-11-2018-0091.

Khin, S., and Ho, T. C. F. (2019). Digital Technology, Digital Capability And Organizational Performance. International Journal of Innovation Science, 11(2), 177–195. https://doi.org/https://doi.org/10.1108/ijis-08-2018-0083.

Konopik, J., Jahn, C., Schuster, T., Hoßbach, N., and Pflaum, A. (2022). Mastering The Digital Transformation Through Organizational Capabilities: A Conceptual Framework. Digital Business, 2(2), 100019. https://doi.org/https://doi.org/10.1016/j.digbus.2021.100019.

Kristoffersen, E., Mikalef, P., Blomsma, F., and Li, J. (2021). The Effects Of Business Analytics Capability On Circular Economy Implementation, Resource Orchestration Capability, And Firm Performance. International Journal of Production Economics, 239, 108205. https://doi.org/https://doi.org/10.1016/j.ijpe.2021.108205.

Ladeira, M. J., Ferreira, F. A., Ferreira, J. J., Fang, W., Falcão, P. F., and Rosa, Á. A. (2019). Exploring The Determinants Of Digital Entrepreneurship Using Fuzzy Cognitive Maps. International Entrepreneurship and Management Journal, 15(4), 1077–1101. https://doi.org/https://doi.org/10.1007/s11365-019-00574-9.

Lafuente, E., Solano, A., Leiva, J. C., and Mora-Esquivel, R. (2019). Determinants Of Innovation Performance. Academia Revista Latinoamericana De Administración, 32(1), 40–62. https://doi.org/https://doi.org/10.1108/arla-10-2017-0309.

Lara, F. J., and Salas-Vallina, A. (2017). Managerial Competencies, Innovation And Engagement In Smes: The Mediating Role Of Organisational Learning. Journal of Business Research, 79, 152–160. https://doi.org/https://doi.org/10.1016/j.jbusres.2017.06.002.

Li, M., and Jia, S. (2018). Resource Orchestration For Innovation: The Dual Role Of Information Technology. Technology Analysis & Strategic Management, 30(10), 1136–1147. https://doi.org/https://doi.org/10.1080/09537325.2018.1443438.

Magistretti, S., Pham, C. T., and Dell’Era, C. (2021). Enlightening The Dynamic Capabilities Of Design Thinking In Fostering Digital Transformation. Industrial Marketing Management, 97, 59–70. https://doi.org/https://doi.org/10.1016/j.indmarman.2021.06.014.

Martínez-Costa, M., Jiménez-Jiménez, D., and Dine Rabeh, H. A. (2018). The Effect Of Organisational Learning On Interorganisational Collaborations In Innovation: An Empirical Study In Smes. Knowledge Management Research & Practice, 17(2), 137–150. https://doi.org/https://doi.org/10.1080/14778238.2018.1538601.

Mugge, P., Abbu, H., Michaelis, T. L., Kwiatkowski, A., and Gudergan, G. (2020). Patterns Of Digitization. Research-Technology Management, 63(2), 27–35. https://doi.org/https://doi.org/10.1080/08956308.2020.1707003.

Nadkarni, S., and Prügl, R. (2020). Digital Transformation: A Review, Synthesis And Opportunities For Future Research. Management Review Quarterly, 71(2), 233–341. https://doi.org/https://doi.org/10.1007/s11301-020-00185-7.

Nambisan, S., Wright, M., and Feldman, M. (2019). The Digital Transformation Of Innovation And Entrepreneurship: Progress, Challenges And Key Themes. Research Policy, 48(8), 103773. https://doi.org/https://doi.org/10.1016/j.respol.2019.03.018.

Nasiri, M., Ukko, J., Saunila, M., and Rantala, T. (2020). Managing The Digital Supply Chain: The Role Of Smart Technologies. Technovation, 102(21), 96–97. https://doi.org/https://doi.org/10.1016/j.technovation.2020.102121.

Oh, Syoung, and Han, H. (2018). Facilitating Organizational Learning Activities: Types Of Organisational Culture And Their Influence On Organizational Learning And Performance. Knowledge Management Research & Practice, 18(1), 1–15. https://doi.org/https://doi.org/10.1080/14778238.2018.1538668.

Ricciardi, F., Cantino, V., and Rossignoli, C. (2020). Organisational Learning For The Common Good: An Emerging Model. Knowledge Management Research & Practice, 19(3), 277–290. https://doi.org/https://doi.org/10.1080/14778238.2019.1673676.

Sousa-Zomer, T. T., Neely, A., and Martinez, V. (2020). Digital Transforming Capability And Performance: A Microfoundational Perspective. International Journal of Operations & Production Management, 40(7–8), 1095–1128. https://doi.org/https://doi.org/10.1108/ijopm-06-2019-0444.

Steiber, A., Alänge, S., Ghosh, S., and Goncalves, D. (2020). Digital Transformation Of Industrial Firms: An Innovation Diffusion Perspective. European Journal of Innovation Management, 24(3), 799–819. https://doi.org/https://doi.org/10.1108/ejim-01-2020-0018.

Thomas, A., Dorrington, P., Costa, F., Loudon, G., Francis, M., and Fisher, R. (2017). Organizational Learning Capability In Smes: An Empirical Development Of Innovation In The Supply Chain. Cogent Business & Management, 4(1), 1364057. https://doi.org/https://doi.org/10.1080/23311975.2017.1364057.

Tijan, E., Jović, M., Aksentijević, S., and Pucihar, A. (2021). Digital Transformation In The Maritime Transport Sector. Technological Forecasting and Social Change, 170, 120879. https://doi.org/https://doi.org/10.1016/j.techfore.2021.120879.

Tortorella, G. L., Cawley Vergara, A. M., Garza-Reyes, J. A., and Sawhney, R. (2020). Organizational Learning Paths Based Upon Industry 4.0 Adoption: An Empirical Study With Brazilian Manufacturers. International Journal of Production Economics, 219, 284–294. https://doi.org/https://doi.org/10.1016/j.ijpe.2019.06.023.

Tsou, H.-T., and Chen, J.-S. (2021). How Does Digital Technology Usage Benefit Firm Performance? Digital Transformation Strategy And Organisational Innovation As Mediators. Technology Analysis & Strategic Management, 1–14. https://doi.org/https://doi.org/10.1080/09537325.2021.1991575.

Urbinati, A., Manelli, L., Frattini, F., and Bogers, M. L. (2021). The Digital Transformation Of The Innovation Process: Orchestration Mechanisms And Future Research Directions. Innovation: Organization & Management, 24(1), 65–85. https://doi.org/https://doi.org/10.1080/14479338.2021.1963736.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., and Haenlein, M. (2021). Digital Transformation: A Multidisciplinary Reflection And Research Agenda. Journal of Business Research, 122, 889–901. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.09.022.

Vial, G. (2019). Understanding Digital Transformation: A Review And A Research Agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/https://doi.org/10.1016/j.jsis.2019.01.003.

Wang, H., Feng, J., Zhang, H., and Li, X. (2020). The Effect Of Digital Transformation Strategy On Performance. International Journal of Conflict Management, 31(3), 441–462. https://doi.org/https://doi.org/10.1108/ijcma-09-2019-0166.

Zaheer, H., Breyer, Y., and Dumay, J. (2019). Digital Entrepreneurship: An Interdisciplinary Structured Literature Review And Research Agenda. Technological Forecasting and Social Change, 148, 119735. https://doi.org/https://doi.org/10.1016/j.techfore.2019.119735.