The Role of Digital Transformation On The Performance of Indonesia's Biggest Dry Bulk Port
Abstract
This study aims to analyze the successful implementation of digital transformation in management and organizational performance and how Information Technology integrates organizations to provide professional services with added value for customers and has competitiveness compared to competitors—analysis using quantitative methods. By distributing questionnaires to 135 respondents from a total population of 204 employees working at the company, the data collected was then processed with PLS-SEM to establish a causal relationship. The research findings explain that digital competency positively and significantly influences organizational performance. Management support has a positive and significant influence on organizational performance. Management support has a positive and considerable effect on digital strategy, and digital strategy has a positive and significant impact on organizational performance. The implications of the findings prove that the better the digital competency, the higher the management support, and the better the digital strategy can improve organizational performance. This research cannot only analyze and calculate the impact of digital competency, management support, and organizational performance at Krakatau International Port.
References
[1]
Dana BENEŠOVÁ, Viera KUBIČKOVÁ, Miroslava PRVÁKOVÁ, Open innovation model in the knowledge-intensive business services in the Slovak Republic, Entrepreneurship and Sustainability Issues 8 (2) (2020) 1340.
[2]
Indonesian Economy Quarter II 2021, https://www.bps.go.id/pressrelease/2021/08/05/1813/ekonomi-indonesia-triwulan-ii-2021-tumbuh-7-07-persen–y-on-y-.html
[3]
Berghaus S, Back A. Stages in digital business transformation: Results of an empirical maturity study.
[4]
D Van Dierendonck, M. Sousa, Finding meaning in highly uncertain situations: Servant leadership during change. InLeadership lessons from compelling contexts, 8, Emerald Group Publishing Limited, 2016, pp. 403–424. Mar 3.
[5]
F Cahen, FM. Borini, International digital competence, Journal of International Management 26 (1) (2020) Mar 1.
[6]
Perifanou M, Economides A. An instrument for the digital competence actions framework.
[7]
B Brečko, A Ferrari, R Vuorikari, Y. Punie, The digital competence framework for consumers, Joint Research Centre Science for Policy Report (2016).
[8]
SK Singh, S Gupta, D Busso, S. Kamboj, Top management knowledge value, knowledge sharing practices, open innovation, and organizational performance, Journal of Business Research 128 (2021) 788–798. May 1.
[9]
Z. Nyikes, Contemporary digital competency review, Interdisciplinary Description of Complex Systems: INDECS 16 (1) (2018) 124–131. Mar 31.
[10]
L Ilomäki, A Kantosalo, M. Lakkala, What is digital competence?, Linked portal (2011).
[11]
Chen X, Siau K. Effect of business intelligence and IT infrastructure flexibility on organizational agility.
[12]
SA Dewi, AA. Dwirandra, The Effect of Top Management Support, System Quality, Information Quality, Actual Users and User Satisfaction on the Implementation of Regional Financial Information Systems in Denpasar City, Udayana University Accounting E-Journal 4 (1) (2013) 196–214.
[13]
Wilkinson, Information and Information Systems, 2nd edition, Erlangga, Jakarta, 2009, translated by Marianus Sinaga.
[14]
Wulandari AR. The Effect of Top Management Support on the Quality of Accounting Information Systems and Their Impact on the Quality of Accounting Information (Survey on the Financial Accounting Section of 2 BUMN Companies in Majalengka Regency) (Computer Doctoral dissertation, University of Indonesian).
[15]
A Ko, P Fehér, T Kovacs, A Mitev, Z. Szabó, Influencing factors of digital transformation: management or IT is the driving force?, International Journal of Innovation Science 14 (1) (2022 Jan 7) 1–20.
[16]
G. Llewellyn Evans, Disruptive technology and the board: The tip of the iceberg, Economics and Business Review 3 (1) (2017).
[17]
G Westerman, D Bonnet, A. McAfee, Leading digital: Turning technology into business transformation, Harvard Business Press, 2014.
[18]
A.S. Bharadwaj, A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation, MIS Quarterly 24 (1) (2020) 169–196,.
[19]
Kahre C, Hoffmann D, Ahlemann F. Beyond business-IT alignment-digital business strategies as a paradigmatic shift: a review and research agenda.
[20]
P Setia, P Setia, V Venkatesh, S. Joglekar, Leveraging digital technologies: How information quality leads to localized capabilities and customer service performance, MIS quarterly (2013) 565–590. Jun 1.
[21]
MS Yadav, PA. Pavlou, Technology-enabled interactions in digital environments: A conceptual foundation for current and future research, Journal of the Academy of Marketing Science 48 (2020) 132–136. Jan.
[22]
Z Wang, M Rafait Mahmood, H Ullah, I Hanif, Q Abbas, M Mohsin, Multidimensional perspective of firms’ IT capability between digital business strategy and firms’ efficiency: A case of Chinese SMEs, SAGE Open 10 (4) (2020) Dec;.
[23]
H As'ari, AM Pabulo, B. Zaman, Effect of Corporate Restructuring on Company Performance, Jae (Journal of Accounting and Economics) 4 (3) (2019) 10–21. Sep 1.
[24]
AF. AlMulhim, Smart supply chain and firm performance: the role of digital technologies, Business Process Management Journal 27 (5) (2021) 1353–1372. Jul 26.
[25]
D.A. Marchand, W.J. Kettinger, J.D. Rollins, Knowledge-intensive Business Services, OUP, Oxford, 2002.
[26]
IT Widyastuti, I Indriana, A Umar, A. Bawono, Analysis of company performance using the balanced scorecard method (a case study of PT XYZ engaged in telecommunications), Journal of Administration and Secretarial 2 (2) (2017) 124–137.
[27]
H Bouwman, S Nikou, M. de Reuver, Digitalization, business models, and SMEs: How do business model innovation practices improve the performance of digitalizing SMEs?, Telecommunications Policy 43 (9) (2019) Oct 1.
[28]
A Benlian, I. Haffke, Does mutuality matter? Examining the bilateral nature and effects of CEO–CIO mutual understanding, The Journal of Strategic Information Systems 25 (2) (2016 Jul 1) 104–126.
[29]
S Khin, TC. Ho, Digital technology, digital capability, and organizational performance: A mediating role of digital innovation, International Journal of Innovation Science 11 (2) (2018) 177–195. Dec 4.
[30]
JA Marino-Romero, PR Palos-Sanchez, F. Velicia-Martin, Improving KIBS performance using digital transformation: a study based on the theory of resources and capabilities, Journal of Service Theory and Practice (2022) Nov 29 (ahead-of-print).
[31]
VM Abarca, PR Palos-Sanchez, E. Rus-Arias, Working in virtual teams: A systematic literature review and a bibliometric analysis, 8, IEEE Access, 2020, pp. 168923–168940. Sep 14.
[32]
NG Rodríguez, MJ Pérez, JA. Gutiérrez, Can a good organizational climate compensate for a lack of top management commitment to new product development?, Journal of Business Research 61 (2) (2008) 118–131. Feb 1.
[33]
H. Ernst, Success factors of new product development: a review of the empirical literature, International journal (2002).
[34]
D Vera, M. Crossan, Strategic leadership and organizational learning, Academy of management review 29 (2) (2004) 222–240. Apr 1.
[35]
Schreckling E, Steiger C. Digitalize or drown. Shaping the digital enterprise: Trends and use cases in digital innovation and transformation. 2017:3-27.
[36]
W Li, K Liu, M Belitski, A Ghobadian, N. O'Regan, e-Leadership through strategic alignment: An empirical study of small and medium-sized enterprises in the digital age, Journal of Information Technology 31 (2) (2016) 185–206. Jun.
[37]
G. Vial, Comprensión de la transformación digital: una revisión y una agenda de investigación, The Journal of Strategic Information Systems 28 (2) (2019) 118–144.
[38]
C Troise, V Corvello, A Ghobadian, N. O'Regan, How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era, Technological Forecasting and Social Change 174 (2022) Jan 1.
[39]
G. Schryen, Revisiting IS business value research: what we already know, what we still need to know, and how we can get there, European Journal of Information Systems 22 (2) (2013) 139–169. Mar 1.
[40]
I. Ghozali, H. Latan, Partial least squares: Concepts, techniques, and applications using the smart PLS 3.0 program, 2nd ed., Universitas Diponegoro Semarang, Semarang, 2015.
Index Terms
- The Role of Digital Transformation On The Performance of Indonesia's Biggest Dry Bulk Port
Index terms have been assigned to the content through auto-classification.
Recommendations
Digital Technology Adoption and Sustainable Development Performance of Strategic Emerging Industries: The Mediating Role of Digital Technology Capability and the Moderating Role of Digital Strategy
Although digital technology adoption has received more attention from researchers in the field of innovation management research, the micro mechanism of the impact of digital technology adoption on the sustainable development of enterprises has not ...
How information technology governance mechanisms and strategic alignment influence organizational performance: insights from a matched survey of business and it managers
Previous research has proposed different types for and contingency factors affecting information technology governance. Yet, in spite of this valuable work, it is still unclear through what mechanisms IT governance affects organizational performance. We ...
Technological distinctive competencies and organizational learning: Effects on organizational innovation to improve firm performance
This paper analyzes how top management support of technology influences the generation of technological skills, technological distinctive competencies and organizational learning. The research also examines the effects of technological distinctive ...
Comments
Information & Contributors
Information
Published In
Copyright © 2024.
Publisher
Elsevier Science Publishers B. V.
Netherlands
Publication History
Published: 17 July 2024
Author Tags
Qualifiers
- Research-article
Contributors
Other Metrics
Bibliometrics & Citations
Bibliometrics
Article Metrics
- 0Total Citations
- 0Total Downloads
- Downloads (Last 12 months)0
- Downloads (Last 6 weeks)0
Reflects downloads up to 14 Oct 2024
Other Metrics
Citations
View Options
View options
Get Access
Login options
Check if you have access through your login credentials or your institution to get full access on this article.
Sign in