The Effect Of Digital Transformation On Company Performance In Umkm In The Food Industry With Innovation Business Model As A Mediation Variable

Muhamad Faizal Ardhian; Anjar Priyono

doi:10.63922/ijebir.v4i02.1641

Muhamad Faizal Ardhian Universitas Islam Indonesia
Anjar Priyono Universitas Islam Indonesia

DOI: https://doi.org/10.63922/ijebir.v4i02.1641

Keywords: Digital Transformation, Company Performance, Business Model Innovation, mediating role of business model innovation.

Abstract

This research aims to 1) test and analyze the influence of digital transformation and company performance in MSMEs at the food souvenir center in Wonosobo, 2) test and analyze the company's performance in MSMEs in Wonosobo, 3) test and analyze the influence of digital transformation on company performance in MSMEs mediated by innovation business models. The type of research used in this research is convenience sampling. This research involved 133 MSMEs in Wonosobo Regency, Central Java. Using an analysis tool in the form of PLS-SEM, the results of this research show that 1) there is an influence of innovation business models on company performance, 2) there is an influence of digital transformation on innovation business models, 3) there is an influence of digital transformation on company performance. 4) there is an influence of the mediating role of innovation business models on company performance. And there is an influence of the mediating role of innovation business models on digital transformation.

References

Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy, 43(9). https://doi.org/10.1016/j.telpol.2019.101828
Ciacci, A., & Penco, L. (2023). Business model innovation: harnessing big data analytics and digital transformation in hostile environments. Journal of Small Business and Enterprise Development, 31(8), 22–46. https://doi.org/10.1108/JSBED-10-2022-0424
Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2021). Strategic Agility, Business Model Innovation, and Firm Performance: An Empirical Investigation. IEEE Transactions on Engineering Management, 68(3), 767– 784. https://doi.org/10.1109/TEM.2019.2910381
Eller, R., Alford, P., Kallmünzer, A., & Peters, M. (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112, 119–127. https://doi.org/10.1016/j.jbusres.2020.03.004.
Giustiziero, G., Kretschmer, T., Somaya, D., & Wu, B. (2023). Hyperspecialization and hyperscaling: A resource-based theory of the digital firm. Strategic Management Journal, 44(6), 1391–1424. https://doi.org/10.1002/smj.3365
Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation Technovation, 102. https://doi.org/10.1016/j.technovation.2020.102217
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). SAGE Publications. ISBN: 978-1-5443-9248-4. DOI: https://dx.doi.org/10.4135/9781071986326.
Heider, A., Gerken, M., van Dinther, N., & Hülsbeck, M. (2021). Business model innovation through dynamic capabilities in small and medium enterprises – Evidence from the German Mittelstand. Journal of Business Research, 130(April 2020), 635–645. https://doi.org/10.1016/j.jbusres.2020.04.051.
Kristoffersen, E., Mikalef, P., Blomsma, F., & 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. https://doi.org/10.1016/j.ijpe.2021.108205.
Martynov, A., & Shafti, N. (2016). Long-term performance of firms: a review and research agenda. In Journal of Strategy and Management (Vol. 9, Issue 4, pp. 429–448). Emerald Group Publishing Ltd. https://doi.org/10.1108/JSMA-02- 2015-0016.
Merín-Rodrigáñez, J., Dasí, À., & Alegre, J. (2024). Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation. Technovation, 134(April).https://doi.org/10.1016/j.technovation.2024.103027.
Mihalache, O. R., & Volberda, H. W. (2021). Business Model Innovation in Transforming Economies: A Co-evolutionary Perspective for a Global and Digital World. In Management and Organization Review (Vol. 17, Issue 2, pp. 202–225). Cambridge University Press. https://doi.org/10.1017/mor.2021.14
Oduro, S., De Nisco, A., & Mainolfi, G. (2023). Do digital technologies pay off? A meta-analytic review of the digital technologies/firm performance nexus. In Technovation (Vol. 128). Elsevier Ltd. https://doi.org/10.1016/j.technovation.2023.102836.
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial Least Squares Structural Equation Modeling. In Handbook of Market Research (Issue July). https://doi.org/10.1007/978-3-319-57413-4_15.
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022.
Volberda, H. W., Khanagha, S., Baden-Fuller, C., Mihalache, O. R., & Birkinshaw, J. (2021). Strategizing in a digital world: Overcoming cognitive barriers, reconfiguring routines and introducing new organizational forms. Long Range Planning, 54(5). https://doi.org/10.1016/j.lrp.2021.102110.
Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J. fan, Dubey, R., & Childe, S. J. (2017). Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356–365. https://doi.org/10.1016/j.jbusres.2016.08.009.
White, J. V., Markin, E., Marshall, D., & Gupta, V. K. (2022). Exploring the boundaries of business model innovation and firm performance: A meta- analysis. Long Range Planning, 55(5). https://doi.org/10.1016/j.lrp.2022.102242.