Title: Understanding the effects of digital transformation, entrepreneurial orientation, readiness for change, and innovative behaviour on performance

Authors: Budi W. Soetjipto; Dian Alanudin; Heru Muara Sidik; Budianto Surbakti

Addresses: University of Indonesia, Gd. Pascasarjana Lt. 2 Fakultas Ekonomi dan Bisnis, Kampus UI, Depok 16424, Indonesia ' University of Indonesia, Gd. Pascasarjana Lt. 2 Fakultas Ekonomi dan Bisnis, Kampus UI, Depok 16424, Indonesia ' Rumah Wangsamijaya, Jl. Wijaya II No.168, Desa Cilongok, Kec. Balapulang, Tegal, Jawa Tengah 52464, Indonesia ' University of Indonesia, Gd. Pascasarjana Lt. 2 Fakultas Ekonomi dan Bisnis, Kampus UI, Depok 16424, Indonesia

Abstract: The fourth industrial revolution has led to massive internet use. Companies must go along with this revolution by adopting digital technologies for a quicker and more accurate response to the market. For this reason, entrepreneurship and digital transformation have come into play to make companies ready for change, to generate innovative behaviour, and eventually to increase performance. This study aims at investigating the effect of entrepreneurial orientation (EO) and digital transformation (DT) on organisational readiness for change (ORC), innovative behaviour (IB), and performance, particularly at the branch level (BP). We involve 203 branches of a state-owned pawnbroker company. We used a set of questionnaires to collect the data on EO, DT, ORC, IB, and BP. Such data were processed and analysed using structural equation modelling (SEM). This study found that DT positively and significantly affected ORC and IB, while EO only positively and significantly affected ORC. Both ORC and IB, in turn, positively and significantly affected BP. This study enriches our understanding of the importance EO, DT, ORC and IB in enhancing performance.

Keywords: branch performance; organisational readiness for change; innovation behaviour; digital transformation; entrepreneurial orientation; digital technology; innovation; technology-driven change; organisational transformation; entrepreneurship.

DOI: 10.1504/IJBSR.2022.125496

International Journal of Business and Systems Research, 2022 Vol.16 No.5/6, pp.709 - 731

Received: 09 Dec 2020
Accepted: 10 Mar 2021
Published online: 12 Sep 2022 *

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