Technology Readiness and Digital Competing Capabilities: Digital Value Resonance
The digital economy for MSMEs still possesses complex problems in the debate over technology readiness and competitive digital capabilities. The increase of dynamic product innovation changes is only effectively supported by digital value resonance. Addressing this issue, this research aims to explore the readiness of technology and the ability to compete digitally for innovative products through the resonance of digital value, especially for multi-business businesses. The data were collected from 170 respondents of small and medium-sized businesses through questionnaires. SEM-PLS techniques were used to analyze the data with a path mediated by digital value resonance on product innovation. The results showed that the resonance of digital value successfully mediated the relationship of technological readiness and digital competing capabilities, as well as direct links to the improvement of innovative products. Digital consumer habits also successfully strengthened the relationship of technological readiness and digital competing capabilities on the resonance of digital value. The advantages of this research lie in the synthesis of proposed digital value resonance variables from the results of resource-based view theory propositions in bridging the previous researcher gaps and contributing as a conceptual novelty model that can personalize digital value in the level of competition and increase MSMEs innovation products.
Keywords : Digital Competing Capabilities; Digital Consumer Habits; Digital Value Resonance; Innovation Products; Technology Readiness
- Afriani, D., & Halmawati, H. (2019). Pengaruh Cognitive Dissonance Bias, Overconfidence Bias Dan Herding Bias Terhadap Pengambilan Keputusan Investasi. Jurnal Eksplorasi Akuntansi, 1(4), 1650–1665. https://doi.org/10.24036/jea.v1i4.168
- Ahn, S. J., & Yoon, H. Y. (2020). 'Green chasm' in clean-tech for air pollution: Patent evidence of a long innovation cycle and a technological level gap. Journal of Cleaner Production. 272, 1-15. https://doi.org/10.1016/j.jclepro.2020.122726
- Alam, S. S., Ali, M. Y., & Jani, M. F. M. (2011). An empirical study of factors affecting electronic commerce adoption among SMEs in Malaysia. Journal of Business Economics and Management, 12(2), 375-399. https://doi.org/10.3846/16111699.2011.576749
- Arifin, A. H., Sullaida, S., & Nurmala, N. (2018). The Relationship of Job Satisfaction, Transformational Leadership, and Work Discipline on Performance Employee With Organizational Commitment As Intervening Variable of Administration Staffs At State Malikussaleh University. Indonesian Journal of Educational Review, 5(1), 52-67. https://doi.org/10.21009/IJER.05.01.08
- Arifin, Z., & Frmanzah. (2015). The Effect of Dynamic Capability to Technology Adoption and its Determinant Factors for Improving Firm's Performance; Toward a Conceptual Model. Procedia - Social and Behavioral Sciences, 207, 786-796. https://doi.org/10.1016/j.sbspro.2015.10.168
- Astuti, N. C., & Nasution, R. A. (2014). Technology readiness and E-commerce adoption among entrepreneurs of SMEs in Bandung city, Indonesia. Gadjah Mada International Journal of Business, 16(1), 69-88. https://doi.org/10.22146/gamaijb.5468
- Barney, J. B. (1986). Organizational Culture: Can It Be a Source of Sustained Competitive Advantage? Academy of Management Review, 11(3), 656-665. https://doi.org/10.5465/amr.1986.4306261
- Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Perspectives, 9(4), 49-61. https://doi.org/10.5465/ame.1995.9512032192
- Barney, J., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. In Journal of Management, 27(6), 625-641. https://doi.org/10.1016/S0149-2063(01)00114-3
- Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly: Management Information Systems, 37(2), 471-482. https://doi.org/10.25300/MISQ/2013/37:2.3
- Bissell, D. (2020). Affective platform urbanism: Changing habits of digital on-demand consumption. Geoforum, 115, 102-110. https://doi.org/10.1016/j.geoforum.2020.06.026
- Bughin, J., & Zeebroeck, N. van. (2017). The Best Response to Digital Disruption. MIT Sloan Management Review, 58(4), 80–86.
- Cabanero‐Johnson, P. S., & Berge, Z. (2009). Digital natives: Back to the future of microworlds in a corporate learning organization. The Learning Organization, 16(4), 290-297. https://doi.org/10.1108/09696470910960383.
- Calvani, A., Cartelli, A., Fini, A., & Ranieri, M. (2008). Models and instruments for assessing digital competence at school. Journal of E-Learning and Knowledge Society, 4(3), 183–193.
- Carcary, M., Doherty, E., & Conway, G. (2014). The Adoption of Cloud Computing by Irish SMEs – an Exploratory Study. Electronic Journal of Information Systems Evaluation, 17(1), 3-14.
- Chang, Y. W., & Chen, J. (2021). What motivates customers to shop in smart shops? The impacts of smart technology and technology readiness. Journal of Retailing and Consumer Services, 58, 1-11. https://doi.org/10.1016/j.jretconser.2020.102325
- Clausing, D., & Holmes, M. (2010). Technology readiness. Research-Technology Management, 53(4), 52–59.
- Demirci, A. E., & Ersoy, N. F. (2008). Technology readiness for innovative high-tech products: how consumers perceive and adopt new technologies. The Business Review, 11(1), 302–308.
- Evans, C. (2001). An E-strategy for online E-business. Information Systems Management, 18(4), 8-21. https://doi.org/10.1201/1078/43198.18.4.20010901/31461.2
- Ferrari, A. (2012). Digital competence in practice: An analysis of frameworks. Sevilla: JRC IPTS.
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.2307/3151312
- Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: a literature review. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association, 19(2), 110–132.
- Goodfellow, R. (2011). Literacy, literacies and the digital in higher education. Teaching in Higher Education, 16(1), 131–144.
- Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664
- Hair, J. F., Black, W. C., Babin, B. J., & R. E. D. (2014). Multivariat Data Analysis. 7th Edition (7th ed.). USA: Pearson Education Limited.
- Hair, Joe F, Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433.
- Halpern, N., Mwesiumo, D., Suau-Sanchez, P., Budd, T., & Bråthen, S. (2021). Ready for digital transformation? The effect of organizational readiness, innovation, airport size and ownership on digital change at airports. Journal of Air Transport Management, 90, 1-11. https://doi.org/10.1016/j.jairtraman.2020.101949
- Handayani, S., & Martini, I. (2014). Model Pemasaran di Era New Wave Marketing. Jurnal Ekonomi Manajemen Dan Akuntansi, 21(36), 1-12.
- Hortinha, P., Lages, C., & Lages, L. F. (2011). The trade-off between customer and technology orientations: impact on innovation capabilities and export performance. Journal of International Marketing, 19(3), 36–58. https://doi.org/10.1509%2Fjimk.19.3.36
- Hunt, S. D., & Morgan, R. M. (2018). The Resource-Advantage Theory of Competition. In Review of Marketing Research, 4, 1-53. https://doi.org/10.4324/9781315088747-4
- Ifinedo, P. (2011). Internet/e-business technologies acceptance in Canada's SMEs: An exploratory investigation. Internet Research, 21(3), 255-281. https://doi.org/10.1108/10662241111139309
- Ilieva, J., Baron, S., & Healey, N. M. (2002). Online Surveys in Marketing Research. International Journal of Market Research, 44(3), 1-14. https://doi.org/10.1177/147078530204400303
- Jaeger, S. R., Cardello, A. V., Chheang, S. L., Beresford, M. K., Hedderley, D. I., & Pineau, B. (2017). Holistic and consumer-centric assessment of beer: A multi-measurement approach. Food Research International, 99, 287-297. https://doi.org/10.1016/j.foodres.2017.05.004
- Joshi, G. P., Acharya, S., & Kim, S. W. (2015). Fuzzy-logic-based channel selection in IEEE 802.22 WRAN. Information Systems, 48, 327-332. https://doi.org/10.1016/j.is.2014.05.009
- Kessler, E. H., & Chakrabarti, A. K. (1996). Innovation speed: A conceptual model of context, antecedents, and outcomes. Academy of Management Review, 21(4), 1143–1191.
- Khin, S., & Ho, T. C. F. (2019). Digital technology, digital capability and organizational performance. International Journal of Innovation Science, 11(2), 177-195. https://doi.org/10.1108/IJIS-08-2018-0083
- Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information Systems Journal, 28(1), 227–261. https://doi.org/10.1111/isj.12131
- Kristiansen, S., Kimeme, J., Mbwambo, A., & Wahid, F. (2005). Information flows and adaptation in Tanzanian cottage industries. Entrepreneurship & Regional Development, 17(5), 365–388.
- Kurnia, S., Choudrie, J., Mahbubur, R. M., & Alzougool, B. (2015). E-commerce technology adoption: A Malaysian grocery SME retail sector study. Journal of Business Research, 68(9), 1906-1918. https://doi.org/10.1016/j.jbusres.2014.12.010
- Kusniadji, S. (2018). Kontribusi Penggunaan Personal Selling Dalam Kegiatan Komunikasi Pemasaran Pada Era Pemasaran Masa Kini. Jurnal Komunikasi, 9(2), 176-183. https://doi.org/10.24912/jk.v9i2.1078
- Larwood, L., Ruben, K., Popoff, C., & Judson, D. H. (1997). Aging, retirement, and interest in technological retraining: Predicting personal investment and withdrawal. Journal of High Technology Management Research, 8(2), 277-300. https://doi.org/10.1016/S1047-8310(97)90007-9
- Lawson, B., & Samson, D. (2001). Developing innovation capability in organizations: a dynamic capabilities approach. International journal of innovation management, 5(03), 377-400.
- Li, T., & Calantone, R. J. (1998). The impact of market knowledge competence on new product advantage: conceptualization and empirical examination. Journal of Marketing, 62(4), 13–29.
- Liljander, V., Gillberg, F., Gummerus, J., & Van Riel, A. (2006). Technology readiness and the evaluation and adoption of self-service technologies. Journal of Retailing and Consumer Services, 13(3), 177–191.
- Lokuge, S., Sedera, D., Grover, V., & Dongming, X. (2019). Organizational readiness for digital innovation: Development and empirical calibration of a construct. Information and Management, 56(3), 445-461. https://doi.org/10.1016/j.im.2018.09.001
- Mahoney, J. T. (1995). The management of resources and the resource of management. Journal of Business Research, 33(2), 91-101. https://doi.org/10.1016/0148-2963(94)00060-R
- Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343.
- Met, İ., Uysal, E. U., Özkaya, K. S., & Orç, E. (2020). Key Success Factors for Strategic Management in Digital Business. Digital Business Strategies in Blockchain Ecosystems. Springer, Cham., 283-304. https://doi.org/10.1007/978-3-030-29739-8_13
- Mohorčich, J., & Reese, J. (2019). Cell-cultured meat: Lessons from GMO adoption and resistance. Appetite, 143, 1-9. https://doi.org/10.1016/j.appet.2019.104408
- Nguyen, B., Yu, X., Melewar, T. C., & Chen, J. (2015). Brand innovation and social media: Knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability. Industrial Marketing Management, 51, 11-25. https://doi.org/10.1016/j.indmarman.2015.04.017
- Nugroho, M. A., Susilo, A. Z., Fajar, M. A., & Rahmawati, D. (2017). Exploratory Study of SMEs Technology Adoption Readiness Factors. Procedia Computer Science, 124, 329-336. https://doi.org/10.1016/j.procs.2017.12.162
- Okundaye, K., Fan, S. K., & Dwyer, R. J. (2019). Impact of information and communication technology in Nigerian small-to medium-sized enterprises. Journal of Economics, Finance and Administrative Science, 24(47), 29-46. https://doi.org/10.1108/JEFAS-08-2018-0086
- Oliveira, T., & Martins, M. F. (2010). Understanding e-business adoption across industries in European countries. Industrial Management and Data Systems, 110(9), 1337-1354. https://doi.org/10.1108/02635571011087428
- Pagani, M. (2013). Digital business strategy and value creation: Framing the dynamic cycle of control points. Mis Quarterly, 37(2), 617-632.
- Paramita, R. S., Isbanah, Y., & Purwohandoko. (2018). Bias Kognitif dan Kepribadian Individu: Studi Perilaku Investor Muda di Surabaya. Jurnal Riset Manajemen Sains Indonesia, 9(2), 214–235.
- Parasuraman, A., & Colby, C. L. (2015). An Updated and Streamlined Technology Readiness Index: TRI 2.0. Journal of Service Research, 18(1), 59-74. https://doi.org/10.1177/1094670514539730
- Parasuraman, A. (2000). Technology Readiness Index (TRI) a multiple-item scale to measure readiness to embrace new technologies. Journal of Service Research, 2(4), 307–320.
- Porter, M. E. (2009). The Global Competitiveness Report 2008 – 2009. In Forum American Bar Association (Vol. 1).
- Ramkumar, P. L., & Kulkarni, D. M. (2016). Impact strength investigation of foamed linear low density polyethylene in rotational moulding process. International Journal of Materials Engineering Innovation, 7(3–4), 159-174. https://doi.org/10.1504/IJMATEI.2016.084617
- Rivoltella, P. C. (2008). Digital literacy: Tools and methodologies for information society. IGI Global.
- Robertson, P. L., & Yu, T. F. (2001). Firm strategy, innovation and consumer demand: A market process approach. Managerial and Decision Economics, 22(4-5), 183-199. https://doi.org/10.1002/mde.1016
- Rohimah, A. (2019). Era Digitalisasi Media Pemasaran Online dalam Gugurnya Pasar Ritel Konvensional. KANAL: Jurnal Ilmu Komunikasi, 6(2), 91-100. https://doi.org/10.21070/kanal.v6i2.1931
- Rojas-Méndez, J. I., Parasuraman, A., & Papadopoulos, N. (2017). Demographics, attitudes, and technology readiness. Marketing Intelligence & Planning, 35(1), 18-39. https://doi.org/10.1108/mip-08-2015-0163
- Sani, A., Subiyakto, A., & Rahman, T.K.A. (2018). Integration of the Technology Readiness and Adoption Models for Assessing IT Use among SMEs in Indonesia. International Conference On Recent Innovations. 3107-3113. https://doi.org/10.5220/0009948131073113
- Sari, S. P. (2020). Strategi Meningkatkan Penjualan Di Era Digital. Scientific Journal Of Reflection: Economic, Accounting, Management and Business, 3(3), 291–300. https://doi.org/10.37481/sjr.v3i3.224
- Saura, J. R. (2020). Using Data Sciences in Digital Marketing: Framework, methods, and performance metrics. Journal of Innovation and Knowledge, 6(2), 92-102. https://doi.org/10.1016/j.jik.2020.08.001
- Schwab K., & Porter, M. E., (2009). The Global Competitiveness Report 2008 – 2009. In World Economic Forum. Available at: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2008-09.pdf
- Şoavă, G., Sitnikov, C., & Dănciulescu, D. (2014). Optimizing Quality of a System Based on Intelligent Agents for E-learning. Procedia Economics and Finance, 16, 47-55. https://doi.org/10.1016/s2212-5671(14)00773-4
- Sok, P., O'Cass, A., & Sok, K. M. (2013). Achieving superior SME performance: Overarching role of marketing, innovation, and learning capabilities. Australasian Marketing Journal (AMJ), 21(3), 161-167. https://doi.org/10.1016/j.ausmj.2013.04.001
- Sugiyarti, G., Ferdinand, A. T., & Nurchayati, T. (2018). Acculturative products uniqueness antecedence for successful marketing performance. DLSU Business & Economics Review, 28(1), 86-96.
- Sun, J. (2016). Tool choice in innovation diffusion: A human activity readiness theory. Computers in Human Behavior, 59, 283-294. https://doi.org/10.1016/j.chb.2016.02.014
- Tabachnick, B. G., & Fidell, L. S. (2012). Using multivariate statistics (6th ed.). Pearson.
- Teece, D. J. (2013). Dynamic Capabilities and Strategic Management. Oxford University Press, Oxford.
- Walker, J. H., Saffu, K., & Mazurek, M. (2016). An Empirical Study of Factors Influencing E-Commerce Adoption/Non-Adoption in Slovakian SMEs. Journal of Internet Commerce, 15(3), 189-213. https://doi.org/10.1080/15332861.2016.1191049
- Weber, W., & Polo, E. F. (2010). Evolution of Generic Competitive Strategies and the Importance of Michael E. Porter. Revista de Gestão USP, 17(1), 99-117.
- Westjohn, S. A., Arnold, M. J., Magnusson, P., Zdravkovic, S., & Zhou, J. X. (2009). Technology readiness and usage: a global-identity perspective. Journal of the Academy of Marketing Science, 37(3), 250–265.
- Wind, J., & Mahajan, V. (1997). Issues and opportunities in new product development: An introduction to the special issue. SAGE Publications Sage CA: Los Angeles, CA.
- Yang, Y., Wang, Q., Zhu, H., & Wu, G. (2012). What are the effective strategic orientations for new product success under different environments? An empirical study of Chinese businesses. Journal of Product Innovation Management, 29(2), 166–179.
- Yeh, C. H., Lee, G. G., & Pai, J. C. (2015). Using a technology-organization-environment framework to investigate the factors influencing e-business information technology capabilities. Information Development, 31(5), 435-450.
- Zhang, X., & Qu, M. (2020). Impact of environmental regulation on scientific and technological competitiveness of resource-based cities in china—based on panel data of 33 resource-based cities. International Journal of Environmental Research and Public Health, 17(24), 1-16. https://doi.org/10.3390/ijerph17249187
- Zhou, K. Z., & Li, C. B. (2010). How strategic orientations influence the building of dynamic capability in emerging economies. Journal of Business Research, 63(3), 224–231. https://doi.org/10.1016/j.jbusres.2009.03.003
- Zhou, K. Z., Yim, C. K., & Tse, D. K. (2005). The effects of strategic orientations on technology-and market-based breakthrough innovations. Journal of Marketing, 69(2), 42–60. https://doi.org/10.1509%2Fjmkg.69.2.42.60756