Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation

This study aims to examine and analyze the effect of Digital Capability on Business Performance through the mediation of Digital Business Transformation. This study seeks to determine the business performance of an SME by evaluating digital business capabilities and transformation owned by SMEs in t...

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Main Authors: Dwiputra Hutama, Kusdi Rahardjo, Agung Nugruho
Format: Article
Language:English
Published: Universitas Brawijaya 2023-07-01
Series:Wacana: Jurnal Sosial dan Humaniora
Subjects:
Online Access:https://wacana.ub.ac.id/index.php/wacana/article/view/1091
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author Dwiputra Hutama
Kusdi Rahardjo
Agung Nugruho
author_facet Dwiputra Hutama
Kusdi Rahardjo
Agung Nugruho
author_sort Dwiputra Hutama
collection DOAJ
description This study aims to examine and analyze the effect of Digital Capability on Business Performance through the mediation of Digital Business Transformation. This study seeks to determine the business performance of an SME by evaluating digital business capabilities and transformation owned by SMEs in the Greater Malang area. This type of research is explanatory research with a sample of 330 UKM in the Greater Malang area, especially in the culinary, craft, and fashion fields. The sampling technique used in this study is the quota sampling technique, and the analysis method uses Structural Equation Modeling (SEM) analysis with the SmartPLS approach. The findings in this show that Digital Capability significantly influences Business Performance directly and simultaneously through the mediation of Digital Business Transformation. The limitations in this study are the existence of obstacles to access for SMEs in the Greater Malang area, which incidentally has a very large area, so it takes quite a long time, coupled with the Covid-19 pandemic that has hit Indonesia, access is constrained due to the government's social distancing policy.
format Article
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institution DOAJ
issn 1411-0199
2338-1884
language English
publishDate 2023-07-01
publisher Universitas Brawijaya
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series Wacana: Jurnal Sosial dan Humaniora
spelling doaj-art-553e593cfe16451d93956cf3d2e356592025-08-20T03:05:52ZengUniversitas BrawijayaWacana: Jurnal Sosial dan Humaniora1411-01992338-18842023-07-01263122131https://doi.org/10.21776/ub.wacana.2023.026.03.02Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business TransformationDwiputra Hutama0Kusdi Rahardjo1Agung Nugruho2Universitas BrawijayaUniversitas BrawijayaUniversitas BrawijayaThis study aims to examine and analyze the effect of Digital Capability on Business Performance through the mediation of Digital Business Transformation. This study seeks to determine the business performance of an SME by evaluating digital business capabilities and transformation owned by SMEs in the Greater Malang area. This type of research is explanatory research with a sample of 330 UKM in the Greater Malang area, especially in the culinary, craft, and fashion fields. The sampling technique used in this study is the quota sampling technique, and the analysis method uses Structural Equation Modeling (SEM) analysis with the SmartPLS approach. The findings in this show that Digital Capability significantly influences Business Performance directly and simultaneously through the mediation of Digital Business Transformation. The limitations in this study are the existence of obstacles to access for SMEs in the Greater Malang area, which incidentally has a very large area, so it takes quite a long time, coupled with the Covid-19 pandemic that has hit Indonesia, access is constrained due to the government's social distancing policy.https://wacana.ub.ac.id/index.php/wacana/article/view/1091smedigitalcapabilitytransformationperformance
spellingShingle Dwiputra Hutama
Kusdi Rahardjo
Agung Nugruho
Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
Wacana: Jurnal Sosial dan Humaniora
sme
digital
capability
transformation
performance
title Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
title_full Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
title_fullStr Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
title_full_unstemmed Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
title_short Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation
title_sort impact of digital capability on smes performance mediating role of digital business transformation
topic sme
digital
capability
transformation
performance
url https://wacana.ub.ac.id/index.php/wacana/article/view/1091
work_keys_str_mv AT dwiputrahutama impactofdigitalcapabilityonsmesperformancemediatingroleofdigitalbusinesstransformation
AT kusdirahardjo impactofdigitalcapabilityonsmesperformancemediatingroleofdigitalbusinesstransformation
AT agungnugruho impactofdigitalcapabilityonsmesperformancemediatingroleofdigitalbusinesstransformation