Technology Readiness and Digital Competing Capabilities: Digital Value Resonance

Roymon Panjaitan -  Universitas Sains dan Teknologi Komputer Semarang, Indonesia
Agustinus Moonti -  Universitas Negeri Gorontalo, Indonesia
Echan Adam* -  Universitas Negeri Gorontalo, Indonesia

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

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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
  11. 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
  12. Bughin, J., & Zeebroeck, N. van. (2017). The Best Response to Digital Disruption. MIT Sloan Management Review, 58(4), 80–86.
  13. 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.
  14. 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.
  15. 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.
  16. 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
  17. Clausing, D., & Holmes, M. (2010). Technology readiness. Research-Technology Management, 53(4), 52–59.
  18. 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.
  19. 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
  20. Ferrari, A. (2012). Digital competence in practice: An analysis of frameworks. Sevilla: JRC IPTS.
  21. 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
  22. 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.
  23. Goodfellow, R. (2011). Literacy, literacies and the digital in higher education. Teaching in Higher Education, 16(1), 131–144.
  24. 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
  25. Hair, J. F., Black, W. C., Babin, B. J., & R. E. D. (2014). Multivariat Data Analysis. 7th Edition (7th ed.). USA: Pearson Education Limited.
  26. 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.
  27. 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
  28. Handayani, S., & Martini, I. (2014). Model Pemasaran di Era New Wave Marketing. Jurnal Ekonomi Manajemen Dan Akuntansi, 21(36), 1-12.
  29. 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
  30. 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
  31. 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
  32. 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
  33. 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
  34. 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
  35. 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.
  36. 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
  37. 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
  38. Kristiansen, S., Kimeme, J., Mbwambo, A., & Wahid, F. (2005). Information flows and adaptation in Tanzanian cottage industries. Entrepreneurship & Regional Development, 17(5), 365–388.
  39. 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
  40. 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
  41. 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
  42. Lawson, B., & Samson, D. (2001). Developing innovation capability in organizations: a dynamic capabilities approach. International journal of innovation management, 5(03), 377-400.
  43. 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.
  44. 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.
  45. 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
  46. 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
  47. Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343.
  48. 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
  49. 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
  50. 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
  51. 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
  52. 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
  53. 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
  54. Pagani, M. (2013). Digital business strategy and value creation: Framing the dynamic cycle of control points. Mis Quarterly, 37(2), 617-632.
  55. 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.
  56. 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
  57. 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.
  58. Porter, M. E. (2009). The Global Competitiveness Report 2008 – 2009. In Forum American Bar Association (Vol. 1).
  59. 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
  60. Rivoltella, P. C. (2008). Digital literacy: Tools and methodologies for information society. IGI Global.
  61. 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
  62. 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
  63. 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
  64. 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
  65. 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
  66. 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
  67. 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
  68. 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
  69. 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
  70. Sugiyarti, G., Ferdinand, A. T., & Nurchayati, T. (2018). Acculturative products uniqueness antecedence for successful marketing performance. DLSU Business & Economics Review, 28(1), 86-96.
  71. 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
  72. Tabachnick, B. G., & Fidell, L. S. (2012). Using multivariate statistics (6th ed.). Pearson.
  73. Teece, D. J. (2013). Dynamic Capabilities and Strategic Management. Oxford University Press, Oxford.
  74. 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
  75. 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.
  76. 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.
  77. 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.
  78. 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.
  79. 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.
  80. 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
  81. 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
  82. 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

Shirkah: Journal of Economics and Business
Published by Faculty of Islamic Economics and Business (FEBI)
Institut Agama Islam Negeri Surakarta, Indonesia
Jln. Pandawa No. 1, Pucangan, Kartasura, Central Java, Indonesia, 57168
Phone: +62271-781516
Website: http://shirkah.or.id/new-ojs/index.php/home
Email: shirkahiainsurakarta@gmail.com

P-ISSN :2503-4235 | E-ISSN : 2503-4243

This ejournal system and it's contents licensed under
a Creative Commons Attribution-NonCommercial 4.0 International License